Factoring 102: Improving Cash Flow

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Factoring, or Accounts Receivable Funding, can have an enormous positive affect on cash flow. If your business has non-performing assets tied up in outstanding invoices, then your business can't grow to its full potential. This presentation shows a simple example of how one business uses factoring to meet regular expenses while having enough left over to run and grow.

Published in: Business, Economy & Finance
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Factoring 102: Improving Cash Flow

  1. 1. HOW FACTORING IMPROVES CASH FLOW Factoring Part 2: A Case History Example
  2. 2. ABC STAFFING - EMPLOYEES
  3. 3. ABC STAFFING - EMPLOYEES • Microsoft • Boeing • Sun • Exxon/Mobil • ETCC
  4. 4. HOW FACTORING IMPROVES CASH FLOW
  5. 5. HOW FACTORING IMPROVES CASH FLOW • Payroll • 50 Employees • $50K per year • $1,041 per week • $4,164 per month • $208,200.00 • -$624,600.00
  6. 6. HOW FACTORING IMPROVES CASH FLOW
  7. 7. HOW FACTORING IMPROVES CASH FLOW • $624,600.00 * 1.5 = $936,900.00 • $936,900.00 * .80 = $749.520.00 • $124,920.00
  8. 8. HOW FACTORING IMPROVES CASH FLOW
  9. 9. HOW FACTORING IMPROVES CASH FLOW • Payroll • 50Employees (@ $50K per year, $1,041 per week, $4,164 per month) • $208,200 * 1.5 = $312,300 • $312,300 * .80 = $249,840 • $41,640 POSITIVE Cash Flow!
  10. 10. HOW FACTORING IMPROVES CASH FLOW
  11. 11. HOW FACTORING IMPROVES CASH FLOW • $624,600 * 1.5 = $936,900 • $936,900 * .80 = $749,520 • $124,920.00 • $936,900 * .15 = $140,535 (Reserve return)
  12. 12. CONCLUSION For more information on this and other strategies, see our website at www.NeoCapitalSolutions.com or call us at (800) 381-2506
  13. 13. CONCLUSION • The 90 Day Snapshot: • -$624,600.00 or ... • $264,000.00 For more information on this and other strategies, see our website at www.NeoCapitalSolutions.com or call us at (800) 381-2506

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