Business Loan Programs 

Cash Now 1M-40M Program

Credit Crunch Disaster or Opportunity?

You can't pick up a newspaper or turn on the television without being blasted with horrible news.  Everyday you read about sub-prime mortgages, the resulting credit crunch and the havoc it's wreaking on the markets.

The sub-prime lending debacle has sent ripples throughout the capital markets.  The effects of these ripples are only beginning to be understood, but already they have caused banks and other financial institutions to tighten their lending criteria or stop lending altogether.

More lenders will begin to curtail their lending as their balance sheets become bloated with loans and their warehouse lines fill up.

The current uncertainty in the capital markets is going to create working capital issues for all types of business, which as recently as the spring of last year, were still able to get traditional financing to bridge gaps in their cash flow.

Factoring: Your Answer to the Credit Crunch

Factoring or Accounts Receivable Financing provides a wonderful tool for companies who are no longer "bankable", but who need immediate cash resources.  Factoring will flourish in our current financial climate because of how the deals are structured. 

First, factoring looks solely to the strength of the client's accounts receivable, and typical facilities will advance about 75% of the total A/R.

The strength or weakness of the clients balance sheet has no bearing on the credit decision making.

Second, factoring facilities are generally not securitized, so the capital markets will have no impact on new business.

Third, because factors are only looking to the accounts receivable, deals can be closed in as few as three (3) business days.


Product Summary
Product Purposes

• Project Financing

• Business Growth Financing 

• Business Acquisition Financing 

• Bridge Financing

• Financing Working Capital Needs 

• Realization of Supplier Discounts

• Crisis Management

• Debtor-in-Possession (DIP) Financing

Monthly Receivable Volume:	$100K and up
Advanced Rate of Receivables:	Up to 75%
Factoring Term:	Generally Two Years

 Frequently Asked Questions

What is Factoring?
The sale of a company's accounts receivable invoices to a factor, in order to obtain working capital.

What are the basic requirements?
That prospective clients provide goods or services to credit worthy customers and that we can verify that the invoices being considered for factoring are accurate.

Is their a required certified financial statement in the application process?
No, there are no financial statement requirements.

Does a company have to be profitable to qualify?
Not always, some clients are new companies that have not yet turned a profit, or they have suffered recent financial losses. JT & Associates, LLC looks at the quality of a company’s customers rather than its specific financial condition.

How long does the closing process take?
A typical deal can be closed and funded within two weeks of the initial referral - in some cases a closing can be expedited.

What industries qualify to purchase accounts receivable from?
Almost all industries - except medical and construction – where clients sell a service or goods and their account debtors (customers) have good credit.

Is there a required personal guarantees?
No – this is because the lender takes the credit risk based on the factored invoices. The lender does require a Performance Guarantee to assure that the invoices are valid. The principals may be responsible for loss suffered by the lender if there is a non credit problem with the accounts receivable.

Who qualifies for factoring?
A wide range of companies in a multitude of industries, including some with a negative net worth, that are losing money, and often even companies in Chapter 11 Bankruptcy. Companies that have a bank loan secured by its accounts receivable may not qualify for factoring unless the bank agrees to release its lien on the accounts receivable.

Can a company with little or no credit history qualify for factoring?
Yes, as long as they have creditworthy customers.

Will a company seeking factoring be viewed negatively by its customers?
No, factoring is used by many large corporations in the U.S. and globally to improve cash flow, support growth and increase profits. In fact, more than 300 billion worth of factoring is done every year in the U.S.

Do a company’s customers always know when a company is seeking financing through factoring?
Yes, the lender must notify the account debtor to pay the amounts due.

Is there a minimum volume of receivables that needs to be committed to in order to qualify for factoring?
In most cases, the minimum monthly volume of no less that $100,000 per month.

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