BLX Launches Accounts Receivable Factoring Product Available Nationwide
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New York - May 1, 2007 - Business Loan Express (BLX),one of the country's largest non-bank business and commercial lenders, is continuing to add new products that businesses need. BLX now offers full notification, non-recourse Factoring nationwide. Factoring is financing of accounts receivable, where one company purchases accounts receivable invoices from another company. Many large corporations in the U.S. and globally use Factoring 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.
Full notification, non-recourse factoring means that account debtors (customers of the client company) are notified to pay BLX directly while the credit risk of non payment is assumed by BLX. BLX will typically give an initial advance of up to 75% of the face value of the receivables with the balance less the fee being paid to the client upon collection of the accounts.
Businesses that may need a Factoring product, include manufacturing of all kinds and service and consulting firms as broad reaching as accountants, lawyers, and advertising agencies.
According to Mark Weinberg, CEO of BLX Funding LLC, "Factoring is a great way to improve your cash flow and get the working capital your business needs. Most importantly, it allows you to focus on the success of your business instead of worrying about how the bills will be kept current. It's a flexible product that is tied to your sales performance. If your sales increase, so does your financing. This makes receivables factoring, an ideal product for growing companies."
BLX works hard to understand, and help small businesses adapt to their changing needs. The process for applying for Factoring is speedy and flexible, as customers will not be restricted by a credit line limit. This product will also be available as an add-on product for existing clients in the manufacturing and service/consulting industries. A typical factoring deal can be closed and funded within two weeks of the initial referral.
It's simple to qualify for factoring. Prospective clients must provide goods or services to credit worthy customers and the invoices being considered for factoring must be subject to verification. A company does not have to be profitable to acquire a factoring facility. Some clients are new companies that have not yet turned a profit, or they have suffered recent financial losses. BLX looks at the quality of a company's customers rather than its specific financial condition. For more details on this product visit blxonline.com
Here are some examples of BLX's recent client success stories:
Manufacturer with Cash Flow Shortfall
A cash strapped domestic furniture manufacturer in the Midwest found itself with a $900K purchase order from Federated Department Stores. In order to fill this order the manufacturer was going to need a lot of working capital and FAST! In 3 days BLX was able to turn their Accounts Receivable into cash with an initial advance of $280K enabling them to pay critical suppliers. BLX was also able to "over-advance" them the rest of the money they needed to fill the Federated purchase order. Since the opening of the factoring facility the manufacturer has nearly doubled its monthly production and sales.
Start-Up with Large Purchase Order and Negative Cash Flow This public company had a purchase order from the largest US home improvement chain for 40,000 units of a high tech product. The company was operating with a negative cash flow and did not have the money to produce the units. BLX opened an irrevocable letter of credit to allow for the production of the units. The company is now intending to produce 120,000 units over the next 18 months.
Manufacturer Coming Out of Bankruptcy
A NJ manufacturing company with $1.6MM of debt was in workout with a money center bank. They were turning down orders because they lacked the working capital to fulfill them. BLX negotiated a discounted payoff of $950K with the bank saving the client $650K. The client had approx. $300K of receivables on the books, and $1.1MM in equipment. In addition, BLX used an industry contacts to finance the equipment to payoff the bank. Plus BLX factored their receivables to give them the working capital to fill the orders they had been turning down.
About BLX
BLX is one of the country's largest non-bank small business and commercial lenders. BLX has originated over $4 billion in loans to small business and investment real estate investors throughout the U.S. representing over 300 different industries. BLX loan programs are specially designed for borrowers with financing needs up to $5,000,000. Borrowers may use BLX loan proceeds for a variety of business and commercial purposes, ranging from real estate acquisition and refinance to working capital.
Loan products include conventional business and commercial loans, as well as government guaranteed Small Business Administration (SBA) loans. BLX is a licensed participant in the SBA's 7(a) and CommunityExpress guaranteed loan programs and is a nationwide SBA Preferred lender. BLX is also a leading lender under the SBA's 504 and Express programs.
For more information, please visit the website at www.BLXonline.com.
Jamie Kleidman
Dan Klores Communications
386 Park Avenue South 10th Floor
New York, New York, 10016
(212) 981 - 5278
Fax (212) 981 - 5478
