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The
Express
Business Finance Group offers alternative
financing to
Canadian companies...
EBF publishes a quarterly newsletter for Financial
Professionals. If you would like to receive this newsletter,
please click on the link below to be added to our mailing
list. Please note that EBF does not rent or sell our mailing
list to outside parties.
To
subscribe to our quarterly newsletter – click
here
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How
does EBF compare to a bank
EBF has a different lending criteria than that used
by a traditional bank.
In making a credit decision, banks primarily look at a client's
financial statements and their ability to service a loan.
EBF looks beyond the balance sheet. Their financing is based
on the Accounts Receivable and other assets of a business.
Other differences include the following:
-
Maximum
Loan Facility - Because EBF's factoring facilities are based
on a client's Accounts Receivable, the funds available increase
as sales increase. Bank facilities will typically have preset
limits and can be difficult to increase as required.
- Locked
In Term - With EBF, there is generally no term to our finance
facility. Clients can use our services for as long as they
require them and can repay the outstanding amount at any
time without penalty. In most cases, bank facilities have
a fixed term with penalties for early termination.
- Outstanding
Taxes - In most cases a traditional bank will not provide
financing to a client with outstanding tax arrears. EBF
will work with a client to finance their A/R even if they
have past due taxes or source deductions.
- Credit
Strength/History – With a traditional bank, lack of
credit strength or weak financials may result in an application
being declined. EBF’s credit decision is based on
the strength of the client’s A/R and as such, even
new companies or those with poor financials may qualify
for financing.
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Timing – Upon receipt of an application and required documentation, EBF will provide a funding commitment within
24 hours. Funding can be provided between four and seven
days in most cases. Banks may take several weeks before
making a financing decision and even more time before funds
are advanced.
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Fees – EBF charges a one-time due diligence fee when
an account is opened. Apart from that, their only fee is
the discount charged when an invoice is factored. Banks
may charge monthly fees, facility fees or audit fees which
can dramatically increase the total borrowing cost.
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