“STAFFING COMPANY FINANCING,
FREIGHT BILL FACTORING AND ACCOUNTS RECEIVABLE FACTORING
CAN WORK FOR YOU”

Our clients may come from many different industries but they all begin factoring account receivables for the same reason. They deliver an excellent product
or service to their customers but find themselves in a cash crunch or growing faster than their cash flow can support. Every industry refers to the practice of financing
in industry specific terms, like freight bill factoring or staffing company financing, but the concept is the same. Factor your outstanding invoices with Praxis and you can immediately improve your cash flow.

Industries that benefit most from factoring account receivables:

• Transportation Companies
• Trucking Companies
• Manufacturers
• Distributors
• Wholesalers
• Staffing Firms
• Consulting Firms
• Telecommunication Companies
• Service Providers

What characteristics must a company have to begin factoring?

Your company should generate at least $10,000 monthly in accounts
receivable and have at least one of the following sentences apply
to it:

• You are a young company with creditworthy customers but lack
  the financial track record required for traditional lending.
• Your business is doing well but to take advantage of new sales
  and profit opportunities you need better cash flow.
• Your business has income, credit and/or tax problems.
• Your company has operating losses or has already filed for
  bankruptcy protection.
• Your business is growing rapidly and you need capital to fill orders
  or provide service but have too much money tied up in accounts
  receivable or other assets.
• Your business is positioned to increase current volume but does not
  want to incur any debt, increase overhead or take on an equity partner.

Many of our clients fall into one of the following categories: 

• A fast growing company whose past earnings and sales history
  will not justify the increased borrowing necessary for the capital.
• A start-up operation with no capital base
  to rely on.
• A company with seasonal or uneven sales patterns.
• A company with either no credit or bad credit that cannot obtain
  traditional financing.

Below are specific examples of these kinds of companies and their
related situations:

• A company with a past:
  A technology company changed direction and developed a new, more powerful version of an existing product. It then brought in new management and refocused its business model. After several years of losses and the call of its bank loan, it was short of cash and unable to obtain new bank financing. However, orders were up, the product's sales cycle was shrinking and prospects were positive. Factoring of the company's accounts receivable increased cash flow, allowing the company to strengthen vendor relationships and concentrate on sales instead of collections.
  
  
• A company with a future:
  Several very experienced executives from large companies came together and formed a new, entrepreneurial company to import and resell foreign lumber. The company obtained initial purchase orders from several large lumber companies but the import costs exceeded the principals' liquidity. Praxis arranged for purchase order financing and the posting of Letters
  of Credit for the company. The purchase order finance component is paid
  by the factoring of accounts created upon delivery of the lumber to the customer. The company now has the mechanism in place to finance its growth, concentrate on new sales and generate immediate cash flow.
  The executives can focus their skills on core business; the future is bright.
  
• A company with special needs:
  A company with a consumer-based telecommunications product was having a liquidity crisis. It had pending arrangements for an equity investment subject to the closing of an acquisition under contract, but needed immediate capital for a short period. Factoring its receivables generated the needed cash, which the company managed as a bridge loan. When the crunch was over, the company kept its factoring arrangements in place
  as a hedge against a similar problem in the future.
  
  
• A company with an opportunity:
  A manufacturing company wanted to change its business model to focus entirely on one aspect of its capacity. Its customers promised to support the change with orders, while management believed that the company would save operating costs, increase margins and gain sales by downsizing to this niche market. However, the move required the financing of new equipment that would squeeze the company's cash reserves. Factoring of receivables plus an additional line of credit secured by inventory and equipment provided the answer: the company was able to successfully take immediate advantage of this new opportunity.
  
  
• A company with limited capital:
  A textile design and manufacturing firm had limited capital but excellent customers. Although the company did well, it functioned principally
  as a one-woman shop, had limited capacity and therefore limited working capital. Praxis provided the company with factoring of accounts receivable. More importantly, when illness of the principal threatened the company's future, Praxis stepped in to help it manage credit, receivables aging and collections. With Praxis' help, the company has grown and is completing the acquisition of a synergistic company that will more than double its growth. Praxis has been asked to factor the combined companies.