Cash Flow for Cash Flow for

Emerging Emerging CompaniesCompanies

Our MissionOur Mission

To provide a complete To provide a complete package of financing and package of financing and services for qualified services for qualified companies at a competitive companies at a competitive cost enabling those with real cost enabling those with real potential to achieve it.potential to achieve it.

Who Needs Factoring?Who Needs Factoring?

Undercapitalized or new companiesUndercapitalized or new companies Growth oriented companiesGrowth oriented companies Companies that cannot get adequate Companies that cannot get adequate

bank financingbank financing Companies with tax problems, liens Companies with tax problems, liens

or working through a bankruptcyor working through a bankruptcy Companies with negative net worthCompanies with negative net worth

What Factoring Does…What Factoring Does…

Improves cash positionImproves cash position Increases purchasing powerIncreases purchasing power Works to improve credit ratingWorks to improve credit rating Makes it possible to increase Makes it possible to increase

production and salesproduction and sales Provides professional credit Provides professional credit

checking on your customerschecking on your customers Provides complete accounts Provides complete accounts

receivable portfolio managementreceivable portfolio management

What’s the difference?What’s the difference?

When you borrow:When you borrow: Lender seeks collateral Lender seeks collateral

equal to a minimum of equal to a minimum of 3X the loan amount3X the loan amount

Your flexibility is Your flexibility is reducedreduced

You must meet You must meet monthly payment monthly payment obligationsobligations

Additional funds are Additional funds are unavailable without unavailable without renegotiating the loanrenegotiating the loan

When you factor:When you factor: You don’t borrow You don’t borrow

moneymoney There are no monthly There are no monthly

paymentspayments Mailing expenses and Mailing expenses and

cost associated with cost associated with follow-up follow-up management on management on accounts is eliminatedaccounts is eliminated

How Much Does It Cost?How Much Does It Cost?

Four factors that determine cost are:Four factors that determine cost are:

1.1. RiskRisk: Overall risk associated with the : Overall risk associated with the transaction and credit worthiness of your transaction and credit worthiness of your customerscustomers

2.2. MaintenanceMaintenance: Work required to administer : Work required to administer and manage the collateraland manage the collateral

3.3. TimeTime: The average number of days funds are : The average number of days funds are in usein use

4.4. VolumeVolume: As you grow we can save you money : As you grow we can save you money by passing economies of scale through to youby passing economies of scale through to you

Show Me the Money!!!Show Me the Money!!!

Without FactoringWithout Factoring

Manufacturing days 15Manufacturing days 15

Shipping days 4Shipping days 4

Collection days 30Collection days 30

Days in the cycle 49Days in the cycle 49

Gross profit margin 30%Gross profit margin 30%

Cycles per year 7Cycles per year 7

Gross Profit $24,284Gross Profit $24,284

With FactoringWith Factoring

Manufacturing days 15Manufacturing days 15

Shipping days 4Shipping days 4

Collection days 2Collection days 2

Days in the cycle 21Days in the cycle 21

Gross profit margin Gross profit margin 30%30%

Cycles per year 17Cycles per year 17

Gross Profit $198,535Gross Profit $198,535

Numbers assume a capital investment of $10,000.00 and the ability to sell all you can produce See our interactive screen on our website at www.fvf.ca

Who are our clients?Who are our clients?

Manufacturers, wholesalers, distributors andManufacturers, wholesalers, distributors and

service companies of all types; generallyservice companies of all types; generally

with annual sales ranging from $120,000 towith annual sales ranging from $120,000 to

$25 Million$25 Million

Typical industries would include:Trucking Auto PartsTemporary Employment Injection moldingCommercial Printing Commercial CleaningWholesale distribution

Who Isn’t Our Client?Who Isn’t Our Client?

We specialize in providing financial We specialize in providing financial assistance toassistance to

most types of companies but cannot most types of companies but cannot accommodate accommodate

Retail storesRetail stores Fee generated receivables Fee generated receivables

(insurance/medical/real estate/legal)(insurance/medical/real estate/legal) Construction receivables as they Construction receivables as they

relate to sub contract tradesrelate to sub contract trades