Accounts Receivable Factoring Criteria

Investment Criteria:
From startups to Fortune 500
Credit worthy customers who pay in a predictable manner
Any product or service

Preferred Size of Investment:
$1,000 to $10 million

Capital for Investment:
SunState Consulting has access to funding in excess of $200 million for factoring of receivables.

Industry Focus:
Manufacturing, distribution and service companies. SunState Consulting can also provide factoring for medical and construction receivables.

Discount Rate:
Typically Between 1.5% and 5% per invoice

Type of Securities:
Verifiable invoices for goods or services

Can Factoring Help Your Business?

SunState Consulting provides assistance to companies in need of working capital to maintain or expand their business. The main objective of factoring or financing purchase orders is to increase your working capital. Factoring and purchase order financing allow you to use funds that are advanced against your receivables or purchase orders as working capital. By taking advantage of both factoring and purchase order financing, you will be able to manufacture or purchase goods, ship them to your customers, and offer your customers terms without any up front out-of-pocket costs.

The main benefit of factoring is the availability of cash on a regular basis. This ultimately improves the profitability of the business, maintains good credit ratings for the business, allows the business to take advantage of discounts for purchases, avoids interest and penalties, funds expansion and growth plans of the business and allows the business to spend more time specializing in its area of expertise.

Factoring services are normally less expensive than maintaining an in-house credit and collection department. Usually, at no cost to the business, the factor will provide extensive credit management and consulting. In effect, a factoring company may act as an accounts receivable department. This can minimize recurring cash flow problems and bad debt losses.

How We Choose Our Venture Capital Investments

We seek companies with first-to-market advantage and large market opportunities companies with the ambition to create and lead new categories. While we focus on early-stage investments, we have access to the financial resources to provide lifecycle funding for our companies. We select companies that have a sustainable competitive advantage by offering highly differentiated, demonstrably superior products and services. At SunState Consulting, we invest venture capital in companies well positioned to dominate fundamentally important emerging markets.

Our venture capital investors base their funding decisions not just on the potential of an idea, but also on the entrepreneurial team’s ability to execute. We’re looking for entrepreneurs with a clear vision of the business they want to build, as well as an extensive understanding and experience of the market space they are addressing. Entrepreneurs must have leadership and team-building skills, including a talent for communicating their ideas and for inspiring others with their vision. Because markets and technologies are rapidly changing, we look for entrepreneurs who can continually learn from, adapt to, and find new ways of profiting from changing conditions.

If you are interesting in obtaining venture capital, please contact us to discuss your needs or click here to apply online.

What is Factoring?

What is Factoring?

Accounts receivable factoring (invoice factoring) is the selling of your receivables (invoices) for cash now rather than waiting 30-90 days or more for your customers to pay you. Factoring is a great and relatively inexpensive way to improve your cash flow and get the working capital your business needs.

SunState Consulting provides assistance for companies in their search to factor receivables. We have found that equity financing is harder to find and once found it takes longer to consummate than debt financing. It has been our experience that some companies, especially start-up companies, have been turned down by banks because of the loan underwriting criteria. Many businesses have not considered accounts receivable factoring when looking for financing, possibly because they do not understand it.

Conventional borrowing increases a business’ expenses and normally requires additional collateral. In the case of factoring, instead of analyzing a business’ financial statements, the business is evaluated on the strength of its accounts receivable. If the business has a product or service that it provides to a credit-worthy customer, then the business is a candidate for factoring. A typical advance is anywhere from 80% to as high as 95%, depending on the industry and volume of business. Factoring does not create debt or require additional collateral. It is very simple to use. Cash can be obtained for invoices normally in 24 hours or less, and as often as the business needs.

Mezzanine Financing

Mezzanine Financing

SunState Consulting invests in subordinated debt securities of small and midsize businesses including micro cap companies. The fund pursues an investment strategy based upon in-depth evaluations of the credit fundamentals of issuers with well established products or services, defensible market niches, reasonably predictable cash flows, experienced management teams and attractive growth opportunities.
SunState Consulting (SSC) is prepared to fund acquisitions by small and medium sized companies. This includes single, strategic acquisitions as well as “Roll-up Strategies” that may includes a series of acquisitions. SSC teams up with companies to help structure, bid, negotiate, finance, and close acquisitions on the best possible terms for a company.

Capital for Investment:
SSC has in excess of $200 million of committed capital for mezzanine investments.

Industry Focus:
Manufacturing, distribution and service companies with sustainable competitive advantages in niche markets, not subject to rapid technological change or wide cyclical swings in volume and profit.

Investment Criteria:
Annual revenues typically range from $20 to $200 million
Stable and predictable operating income (EBITDA)
Product, service or distribution channels with distinctive competitive advantages
Operated by experienced management teams with meaningful ownership positions
Industries with multiple participants undergoing consolidation

Preferred Size of Investment:
$1 million to $20 million but will participate as lead or co-investor in larger transactions

Coupon or Dividend Rate:
12% – 14% fixed, interest only.

Type of Securities:
Subordinated debentures with warrants

Equity Features:
Minority interest, never voting control

Board of Director Participation:
Observation rights, or ability to appoint board member(s)

Type of Mezzanine Transactions:
Expansion Financings (internal growth and/or acquisitions)
Recapitalizations and Divestitures
Management/Leverage Buyouts

If you are interesting in obtaining funding for your business, please contact us to discuss your needs or click here to apply online.

Purchase Order Financing

Purchase Order Financing

Purchase Order Financing is short term funding that is used to finance the purchasing or manufacturing of products that have already been pre-sold by the client to a credit worthy customer. This type of financing allows clients to secure the inventory they need to fulfill customer orders while maintaining a healthy cash flow.  PO Financing can be combined with accounts receivable factoring which allows for an advance against receivables after the goods are shipped.

Utilizing PO Financing to Better Your Business:

• Obtaining Sufficient Capital
  Companies that have solid customers and/or sales but do not have the working capital to complete transactions will benefit from PO Financing.
• Transfer of Risk
  Clients transfer the risk of payment by the end customer to the PO Financer.  When PO Financing is combined with Accounts Receivable Factoring, the client is not responsible for the collection of any monies owed.
• Enhanced Profits
  Clients can grow more quickly when they have access to available capital to do more business.  Our clients are able to take on additional clients that they would not have otherwise had the cash-flow to handle by utilizing PO Financing.
• Credit Worthiness
  Since PO Financing is distributed based on the credit-worthiness of your customers, SunState Consulting is able to provide working capital where banks and traditional lenders cannot in cases where the company’s youth,  financial statements, or collateral will not support sufficient borrowing.
• Flexibility
  PO Financing can be used in various ways.  For Example, to fund finished goods that will be shipped directly to the customer, to pay for raw materials or labor costs, or to pay for packaging and shipping costs.

If you are interesting in obtaining purchase order financing for your business, pleasecontact us to discuss your needs or click here to apply online.

Contact Us

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Contact Us

We are happy to discuss your individual needs. Please contact us directly at the numbers below:

Telephone
General: 602.532.7033
Jim Adams, President: 702.454.1084
E- Mail
General Information: E-Mail Us
Mailing Address
Nevada: 4341 El Cebra Way; Las Vegas, NV 89121

Business Resources

Business Resources

Entrepreneur.com

Business Week – Small Business

Bankruptcy - The Bankruptcy Site, your source for free online information on the complete bankruptcy filing process.

Filing Bankrupcy – E-Bk.com bankruptcy lawyer directory and bankruptcy filing help.

IRS Small Business Tax Center

Small Business Administration

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Professional Business Plans

Welcome!

SunState Consulting provides professional business development services, including business plans, accounts receivable factoring, venture capital, purchase order financing, start-up financing and mezzanine financing to businesses worldwide. Your search for innovative sources of capital is over! You have found the company which will meet your financing and factoring needs and help you solve your cash flow problems. Please browse our site and let us know when we can begin to solve your cash flow and capital requirements.

Services

Many of our clients’ financing and capital needs fall into the following categories. However, our services are tailored to meet every client’s individual financial needs.

• Professional Business Plans
  The first step toward obtaining financing for your new business. Several Business Plan options are designed to meet your individual needs.
• Financing
  Start-up Financing is available to entrepreneurs and businesses based upon a solid business model with a credit worthy structure.
  Venture Capital meets the needs of entrepreneurs searching for new business loan funding, or any company that does not fit into any other funding model.
  Mezzanine Financing meets the needs of a new but profitable company prior to a bank being willing to offer lines of credit.
  Purchase Order Financing is designed to meet the needs of businesses with less than perfect credit.
• Account Receivable Factoring
  Accounts Receivable Factoring solves immediate and short term cash flow needs.
• Real Estate Investment Financing
  Financing for investors looking to purchase residential property as an investment (non-owner occupied) with low down payments and competitive rates.