Archives 2016

August 2016 In Review


August 2016 Review

August was our best month factoring! We did many deals with local companies including repeat customers. Great conversations with customers have further strengthened our relationships with growing businesses here in Missouri.

Surpassed $500,000

In August, we surpassed $500,000 in financing this year! It was a nice milestone for this new venture. We’re very proud of the relationships we’ve built with local business owners and take great satisfaction from helping them grow with our financing solutions.

Same Clients, Different Month

August was also a great month for repeat business. It’s always great to have repeat business and we enjoy hearing how businesses are growing and the benefits they’ve found from factoring invoices. It’s always great to have face-to-face interactions with all of our clients and learn more about them and their businesses.

24 Hour Turnarounds

We’ve been developing relationships with clients to help streamline turnaround time on invoices. We were less than a 24 hour turnaround on every invoice received in August! We pride ourselves on serving clients in a timely manner to help them grow their business.

If you’re in need of financing, let’s talk.  We can try to find a solution for your business to help it keep growing.

July 2016 in Review

July was a busy month at Mid-Continent Financial Services. We did several deals with local companies during the month. Word has been spreading about our quick turnaround times and ability to factor a variety of invoices.

Wholesale Distributor Deal

We helped a local wholesale distributor that had made sales earlier this year but knew it would be waiting until its’ customers entered their new fiscal year to pay the invoices. We factored several invoices for them and gave them the capital to help them build their business. Once we were paid in full, we issued them a settlement statement along with a check for their balance within two days.

Sub-Contractor Deal

A local bank referred to us a growing sub-contractor doing work throughout the state of Missouri. They have good customers but they’re often slow to pay and with a company experiencing growth like they are, they need cash to pay suppliers to get more jobs completed. We factored three invoices for them and helped improve their cash flow immediately.

Property Management Deal

A local property management company came to us in a bit of a pinch. This time of year keeps them very busy so when a truck broke down, they were left to scramble to get money knowing their customers would pay but they had 10 invoices outstanding they brought to us to factor. We got the deal done same day so they could get back to full strength and service their customers.

It’s the start of the month. Are you ready to bill customers but need cash soon? If you’re typically waiting 30, 60, 90 days let’s talk and see if factoring is a solution for your cash flow problems.

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What is Factoring?

What is Factoring?

We get that question frequently so we thought we’d give an example of factoring with an international client we recently worked with to improve cash flow. The client came to us originally looking for venture capital to help her growing business. We explained we aren’t a venture capital firm but do offer financing options for growing businesses. Over a few weeks, we discussed the company’s needs and found factoring would be the best solution.

The client completed our application and submitted it along with a letter of credit from her customer, an official standing order that states the bank is to pay us upon successful completion of the transaction and a copy of the purchase order.

Once we received this information and performed our due diligence, money was wired to the client within two weeks. This helped client improve their cash flow to perform the operations needed to fulfill the customer’s order. The client delivered the product successfully to its’ customer and the customer paid. That payment was sent to us including the full principal and interest in about 60 days from first wiring the money to the client.

If you need to improve your cash flow, let us help. We can factor accounts receivable, purchase orders and invoices to give you the cash you need now to grow your business. Instead of waiting 30, 60 or 90 days for that invoice to be paid, use factoring to get paid now. With factoring, we don’t look at your credit; we look at your customer’s credit. You don’t take on debt with factoring so this is not like a loan from your bank.

If you need to improve your cash flow, invoice customers, wait 30 to 90 days for payment from solid customers, need a line of credit or working capital loan, we can help.

We’ve been in business since 1985 serving clients around the world. Let’s talk about financial solutions we can offer your business.

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Why You Need Factoring


Why you need factoring!

When cash flow slows, it hurts your business’s ability to grow. How often have you not been able to pay bills, fund payroll and have to dodge suppliers who are calling asking for payment? It happens every month for all growing businesses.

You are making sales but your receivables are keeping you from expanding your business. What if you could get paid today for the work you have just completed? Would your business grow and expand? You need Mid-Continent Financial Services to immediately buy your accounts receivables.

Mid-Continent will be your cash flow engine. The process is called “factoring”, and in the simplest terms, it means Mid-Continent advances you up to 90% of the invoice amount immediately, and gives the remaining balance when your clients settle in full.

Invoices can be submitted for factoring directly upon completion of the work or product delivery. Revenue flows directly and instantly to you without delays. No collection hassles. You are not taking on any debt with factoring.

We can often assume all credit risk and responsibility for client payment. In return, Mid-Continent receives a small fee at the end of the process. Set-up time can be as little as two or three days and you are not locked into a long-term contract.

Mid-Continent allows you the flexibility to factor only when you need it, and as often as you like. We base our approval decisions on your customers’ ability to pay, and not the credit of your growing business.  Ask us about our invoice and purchase order financing.

Let us know how we can help.

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What is Purchase Order Financing?


What is Purchase Order Financing?

Purchase order financing or PO financing is an invaluable solution to help grow a business’ sales and profit beyond the constraints of an asset based lender or bank’s collateral base formulas.

Let Mid-Continent Financial Services, LLC, assist your business by allowing you to be able to produce your contracts and orders. This will help you grow by not having to wait for your cash flow to catch up with production requirements. You will no longer be constrained by your balance sheet. You won’t need to take on debt to grow your business. When things get tight and your bank is not willing to extend you further credit. Purchase Order financing can save the business.

Purchase order financing is used not only for growth situations as a better, less expensive alternative to a company raising equity for a short term bridge or capital need to fulfill orders, but is frequently used as an effective tool in a company turn around or restructuring. When balance sheet lenders can’t provide the needed liquidity PO financing helps to rehabilitate a company’s relationships and, payment terms. Then their lenders and suppliers are more willing to work with the company.

Mid-Continent has the experience and skills to find financial solutions for your firm using several ways including PO financing, purchasing your accounts receivables, asset lending and other creative ways to expand or even save the business. We have assisted businesses since 1985 with very positive outcomes. We will quickly access your situation evaluate the best course for you and make it happen. We have years of experience with many industries finding sound business solutions the normal problems businesses experience over time.

We know business fortunes can be based on one bad or good decision if after you meet with us you will know the best course of action. If you feel it is PO financing or factoring will be there to help.

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Cash Flow Difficulties in Biomedical Research & Contract Research Organizations

It is well known that a challenge for a new or growing business can be cash flow. The proprietor sees the opportunity for growth but his current cash intake is not sufficient to allow taking that next step. To top this off, raising money from investors can be extremely challenging, and banks are not willing to loan money in this risk adverse environment.

With the recent down turn in the markets funding for bio techs has started to dry up quickly. Bio techs must have cash to pay for the services of a Contract Research Organization (“CRO”) to perform the studies and provide the data to demonstrate their product.

CRO’s have another issue in this equation. The trend over the last couple of years has been for clients to extend payment periods from a traditional 30 days, to 45, 60 and even 90 days! Most of the work for a client on a study is completed in a few weeks at most. Payments are generally milestone based with 30-40% due at signing, another 20-30% at the start of the in-life portion of the study, 20-30% at the end of the in-life the remainder due at the submission of draft and final reports.

What does this mean to the CRO? Depending on the length of time between signing the study and getting started, the CRO may have completed most or all of the work (thus incurring nearly all of the cost) well in advance of receiving the first payment. The clients who want the longest terms are the largest in the industry and it is take it or leave it.

While income generated from work for smaller clients can help, it is not always sufficient to finance trying to get your foot in the door with the largest of clients. So what are your options if raising capital through investors and getting a bank to loan you money are not viable options?

Trying to play around with credit cards may provide some help with buying supplies, but this is only a small portion of the cost of a study – labor is the predominant cost and you cannot pay people with credit cards.

What if there was a way to get cash the cash you need now without even going into debt? How would you go about doing this? The answer is you find a party that is willing to buy your future receivables now at a small discount. It is not a loan and you assume no debt. The party (generally referred to as a factor) is actually buying the receivable or invoice. You get cash in hand now and the factor then waits the remaining days to collect the receivable.

An example is helpful. The CRO has an invoice payable in 30 days for $5,000.00. The CRO sells the invoice to the Factor for $4,500.00 cash. 30 days later the Factor receives the $5,000.00 for the invoice. The Factor keeps the $4,500.00 it already paid the CRO, plus a factoring fee of $50.00 and interest of $50.00 (1% and assuming the invoice is paid in 30 days). The net to the CRO – $4,900.00. So for a total cost of $100.00 the CRO got the cash it needed right away in order to pay its employees, buy supplies and to take on more clients.

If this sounds like what you need to grow your business, let us help. Contact us below and let’s explore potential cash flow solutions for your business.

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