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Can Los Angeles Wholesalers Find Factoring Invoices to be Better than Bank Loans?

Factoring Invoices

Working Capital Is Essential

Factoring Invoice financing is not always thought of immediately by Los Angeles wholesalers because most businesses look to their local bank for loans. Local banks do not provide factoring because it costs too much to monitor and is not a product that fits their lending profiles.

Most businesses understand factoring as the conversion of invoices into immediate cash. This is correct, but some factoring companies are also commercial lenders so the local wholesaler should know all the lending services before using some other potentially more expensive ways to raise capital such as selling equity.

Here are the ways a business can fund itself….

Factoring Invoices Financing: Selling your business’s invoices can raise cash fast.

PO Financing: Funding suppliers based on credit worthy purchase order (POs) from your customers. Often, a supplier will not release your goods based on credit so having a finance company pay the supplier can be a big benefit to cash flow and timeliness of delivery.

Inventory Financing: Los Angeles wholesalers are often preferred over Chinese supplier by large customers because they keep inventory in the US for quick replenishment and can absorb service issues. However, how does a small or mid-sized wholesaler finance their inventory. With PMF Bancorp’s inventory financing, your business could use its regularly sold inventory items as eligible collateral.

Equipment Financing: Los Angeles wholesalers are constantly picking up goods at the port. They often need vehicle financing or equipment financing. PMF Bancorp has programs to assist with these credit needs as well.

117th Canton Fair in Guangzhou, China from April 15-May 5th…source your products in one stop.

Website: http://www.cantonfair.org.cn/en

The 117th Canton Fair will be held from April 15 to May 5, 2015.

Canton Fair boasts an exhibition area of 1,160,000 square meters, 59,500 standard Booths, more than 200,000 buyers, and tens of Billions of US dollar business value in every session. Each Session of Canton Fair created boundless business opportunities. The 117th Canton Fair is coming soon. You are welcome to share or search global cooperation opportunities. You also can get more information in official website of Canton Fair www.cantonfair.org.cn/en ; www.e-cantonfair.com

Phase 1 (April 15-19, 2015)
Electronics & Household Electrical Appliances, Lighting Equipment ,Vehicles & Spare Parts, Machinery, Hardware & Tools, Energy Resources, Chemical Products, Building Materials, International Pavilion

Phase 2 (April 23-27, 2015)
Consumer Goods, Home Decorations, Gifts

Phase 3 (May 1- 5, 2015)
Office Supplies, Cases & Bags, and Recreation Products, Food, Medicines, Medical Devices and Health Products, Textiles & Garments, Shoes, International Pavilion

For Buyers Registration, please visit

7 Ways to Unlock Cash & Profit in Your Business…

Invoice Factoring Los Angeles

Cash is King!

After more than 30 years of lending to businesses, PMF Bancorp has seen many methods to improve cash flow and profitability. It is cliché, but the old saying that “Cash is King” is actually not far from the truth. As you know, even if your profits are large, without cash flow to pay the rent, you are out of business. This is the blessing and the curse of doing business with and selling to large companies as they take forever to pay. It is almost an unwritten right that large corporations expect credit or terms to pay their invoices. Well, PMF has 7 simple ways to increase your cash flow and profit that can be implemented easily as follows:

1. Review: your Invoices (accounts receivable) should be monitored on a weekly basis;

2. Collections: If your business is carrying accounts receivable greater than a typical employee’s salary then you should have a person dedicated to their management (a soft collector);

3. Make a Deal: Don’t be afraid to talk to your customers (even the bigger ones) to get them to pay early for a small discount (this is common and these funds can be arbitraged to potentially pay suppliers early for a discount as well);

4. Relationships: Visit your largest customers once a year at minimum and twice if possible as they can pull strings during a lean period or if processing your invoices is delayed;

5. Credit Monitoring: most companies evaluate credit once and forget it…this is wrong as credit on larger customer should be monitored at least annually to make sure no adverse changes occurred which could impact your sales and your invoice repayment;

6. Common Sense: don’t sell customers that are too big as you will run out of cash. Even if you complete the order, what will happen if payment is delayed or another good customer needs material…grow with common sense (i.e. doubling size in one year is a red flag for you and most lenders);

7. Financing & Invoice Factoring: Make sure to have financing lined up and set when you DON’T need it because I guarantee you it won’t be around when you do need it.

Financing is really essential to a small to medium size business that is growing. Owners and executives of these companies are always optimistic and in many cases try to put off needed financing to save costs; however, this is not the right mind set. The owners and execs should make sure to have a financing deal already signed and on the shelf ready to use. Even borrowing a little from the line facility and testing out the process when it’s not absolutely necessary is useful to make sure everything is ready to rock when the big sales start to arrive. PMF Bancorp has been providing invoice factoring, lines of credit, trade finance, and other short working capital solutions for businesses to grow for over three decades. Often, smaller businesses are rejected by the traditional banks as not having enough credit, profit, equity, etc., but PMF Bancorp has developed special programs that still provide a business with the lines of credit they need.