DIFFERENT TYPE OF BUSINESS LOANS

1. Account receivable financing - 85 to 95 % loans against your account receivable. A separate account is established with a commercial bank, whereby remittance from the customer is deposited in that account. The lender then deposit to your regular account, less the amount od daily interest. At no time will your customers be made aware of the fact that you have their accounts pledged for a receivable loan, but the principle of dominion under the Uniform Commercial Code requires that remittances be deposited in the control of the lender

2. Factoring - 80 to 85 % of your receivable is funded by the factoring Company as advance immediately on factoring. Technically, it is not a loan against the receivable because the factor actually purchases the receivables and there is no further recourse for lack of payment on the receivables. The borrower is not responsible for the collection of the receivables. After collecting the receivable, the factoring company taking fees of 3 to 7% depending on the credit worthiness of the customer's client and remit the balance amount to the account of the Customer

3. Sales -Leaseback - Used equipment of a customer is sold to the leasing company, who in turn leases it back to the original owner. . The capital is then available to the customer for use in the business.

4. Floor Planning - This is available with all type of distributors such as automobiles, machine tools, appliance dealers' etc. The Finance Company occasionally finances the goods, while they are on the dealer's premises. They provide finance, until a fixed time for the sale of the goods.

5. CSBF Loans - Loans guaranteed by the government are available through banks and credit unions etc up to a maximum of $ 250,000 for start up, expansion etc provide the projected turnover of the customer do not exceed $ 5 millions. The lending rate is prime plus 3 %.

6. Equipment Leasing - New or Used equipment can be leased. Lessor (Funder) holds the title of the leased equipment on behalf of the Lessee (User). The lessee maintains possession and usage of the equipment provided they insures the equipment against theft or damage and pays the lessor a monthly lease. At the end of the lease, the lessee (user) can purchase the equipment (usually for $1.00) or give it back to the lessor and begin a new lease, or simply walk away.

7. Asset Based Loans - Provide loans based on the value of existing land, building, machinery, account receivables etc, which may be in the form of leasing, term loans and conditional sales contracts etc.

8. Franchise - Loans are available for setting up franchise units of established franchisers

9. Purchase order financing - Advance can be obtained for machinery etc which take 6 to 12 months for building based on the purchase order for the same machinery or similar type of deals.