LA CleanTech Incubator Event : Stephen Perl, CFO PMF Bancorp speaks to businesses on Alternative Financing, Invoice Factoring, & more….

At LA CleanTech Incubator Stephen Perl, CFO PMF Bancorp, expert on on working capital financing for small business, will speak on Alternative Financing for businesses, invoice factoring, and business loans financing.

Learn about ways to hack into the working capital your business needs. Learn about Invoice Factoring, PO financing, trade financing, Crowd Funding, Crypto currency ICOs, and more.  The event will integrate new technologies and financing that small to medium size businesses should understand.

For more info on the event, click here: LA CleanTech Incubator Alternative Financing Seminar

FREE BUSINESS CREDIT REPORTS -download APP powered by PMF Bancorp

Start the New Year Right with PMF’s New Free Credit App…

-Make Better Credit Decisions

Start by making better credit decisions with PMF Bancorp’s “Free Credit App”. Pull upto 4 credit reports a month on any of your new customers or old customers to review their current credit history. PMF Bancorp has been financing businesses since 1985 and credit is one of our strengths…lets us help your company make the right decisions.

PMF Bancorp specializes in financing companies that have been turned down at the traditional banks. If your loan size is between $100k and $25 million, then please feel free to contact us for help.

To download our Free Credit Report App… click here:

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Bring in July 4th with 4 Ways to Improve your Cash Flow!

Cash flow need improvement? Call Invoice Factoring U.S.
Cash flow need improvement? Give us a call (800) 218-9000

Here are 4 ways to get the biggest bang for Cash Flow bucks:

  1. Negotiate Vendor Agreement(s) – Even if your large customer says their terms are 60 days without exception, there still can be items that they can do to assist your company with its cash flow. They can often add a clause for early payments such as a 2% discount for a payment within a 10 day term…however, bringing your own independent financing through a factoring company can often save you a lot of money and provide more flexibility.
  2. Make Deals with Suppliers – Chinese Suppliers are tough, but if you take the time to visit and build a relationship with your factory, they will most likely support your company with some terms after the first year if your business has been smooth. Suppliers can be a great source of extra credit and relive strains on your cash flow, especially when selling to larger customers.
  3. Selling Smart – When selling to a large customer, we all dream of the big orders. These orders can just as easily become a dream as a nightmare. Start by selling smaller amounts by selling regions of retailers or via their online presence before rolling your product to all their stores. Even though buyers are looking for margin and product wins…you need to be able to win too. Sell smart.
  4. Get the Right Financing – Yes, we all think we should have a big credit line with the major bank across the street for at a half point over prime. Again, the faster you realize what financing is meant for your company, then the faster you can move on to selling and growing sales. Many small to medium size businesses need working capital to buy more products and to hire staff…one does not need to beg a bank for a line to grow. Commercial lending banks that specialize in lending to businesses like PMF Bancorp can setup lines of credit, AR financing, trade financing and many other types of financing without the brain damage that the major banks cause. The right financing allows you to get back to the business of marketing and selling…the right financing will evolve as your business develops appropriately.

5 Tips for Spring Clean-Up for Your Business

Invoice Factoring Los Angeles, CA
Out with the old, in with the new financing options!

Spring is a great time of year to clean out the old and prepare for the new. This not only works well for the home and garden, but for your business too! Here are 5 tips to get you started:

  1. Let the Cash Shine In: Look for innovative ways to get cash in-hand faster and to have access to funds when growth comes calling. For periodic access to immediate cash, consider invoice factoring financing where you sell your accounts’ receivable or invoices at a discount in order to get the cash in-hand sooner rather than later. Great way to increase cash without increasing your debt or accumulating more loan payments. For projects or longer terms items like developing a new product line, accessing a small business loan may also be a good solution. In some cases, new invoices may not be generated right away so a more patient money such a longer term loan or equity may be a sound alternative.
  2. Trimming Inventory: Inventory is stuff, stuff takes up space, and space costs money. Spring is a good time to consider selling off inventory that’s no longer turning over profitably. Any potential loss in the process needs to be weighed against the carrying costs, particularly if you can replace the old with new items that will sell.
  3. Pruning Expenses: Revisit everything that you’re spending money on to look for ways to work smarter, more efficiently and more profitably. If this takes too much time, the first thing you want to fix is your expense management system. Other areas include evaluating energy, communication and outsourced services costs. If you’ve been with a payroll provider for a long time, for example, reexamine what they’re charging you over the competition. Spending controls equal profit controls.
  4. Customer Weeding: Take a fresh look at your customer base. Who pays on time? Who’s been with you a long time? Who hasn’t bought in a while? Who represents routine problems? The more you can understand who is buying what, when, how much and why, the more you can proactively drive increased sales and profits going forward.
  5. Staff Sprucing: Your team can be one of your most powerful – and expensive – assets in business. Look at who is doing well and be sure to let them know. This includes not only routine praise, but also other forms of rewards including financial and benefits. If someone is not performing well, nip it in the bud sooner rather than later. One bad apple can spoil the bunch!

For service-type businesses that do not deal with inventory issues, another great area to take a fresh look is how well you’re spending your time. Collectively, by looking at these and other ways to freshen up your business, you will be sure to reap many rewards.

How to Tell Your Customers –Your Company is Opting for Invoice Factoring Financing

Factoring Solutions ToYour Cash Crunches
Factoring Solutions To Your Cash Crunches

Extending credit to customers always helps in running a business and allowing the business to have more working capital to expand. Generally, businesses do not want to miss to increase their working capital.   Therefore, telling your customer that you are now expanding their repayment terms and allowing them to pay in 30 or 60 days instead of cash up front is really a win for them.  Yes, it costs you a little bit but there are great benefits to doing this.

Invoice factoring is best solution to convert piles of unpaid invoices into cash and pump funds into your company’s system. This flexible source of funds lets businesses convert their invoices immediately into cash after the transaction is complete instead of waiting for customers to pay after their due date. It is a great source to fund short-term capital requirements and does not burden the businesses with additional liabilities or any interests.

With help of a reliable invoice factoring company, businesses can get almost any amount of receivables factored as long as eligible to meet their working capital requirements. Once this is done, collection part is now taken care of by the factor. Post due date, client will pay the due amount to factor.

How would Customer React to Business Receivable Factoring?

Once a business decides to get a particular receivable to be factored, it needs to inform their customer about this arrangement. Business owners generally have a misconception that accounts receivable financing is not appreciated by their customers.  In 99% of the cases, the customers do not even care.  The 1% that care typically do not want the extra oversight of a 3rd party that professionally monitors the payments and will hold them much more accountable if not paid.  Beware of the customer that puts up a fight to be assigned as a factoring account as they may not be a customer you should be keeping.

In US such factoring arrangements have become common and many industries are into it already. Businesses understand such setups and completely favor these, and prove such exaggerated misconceptions to be baseless. They appreciate an owner’s effort to keep themselves in a good financial position and thus support the request for invoice factoring.

When and How to Intimate Clients?

As soon as your business initiates a factoring arrangement, you will need to inform the customer (as well as the factoring company) to direct the payments to the factor. Again, the factor have a certain level of direct communication with the customer as well to verify assignments and invoice amounts. After the due date, if reminders are needed, factors do it politely in most cases just as the business owners would have notified the customers.

Retaining a good relationship with your customers are a top priority of any factoring company. The SECRET lies in finding a reliable and EXPERIENCED factoring company that is very professional, particularly when it comes to handling your customers and collections.

Keeping the Business Operations at Flowing with Business Receivable Factoring Financing

The prime fuel to the business operations is the money and such crucial operations do not wait for the right time

business line of credit los angeles
Get a line of credit and clean up this Spring!

when you are equipped with sufficient money. The flow of sales has to be maintained for the right growth and health of the business. The options to cling on when you are out of cash are taking loans from banks or merchant cash advance, MCA lines. Unfortunately, these ideas are not appealing to the entrepreneurs who need immediate cash without the heavy paperwork burdens and the high interest rates, especially with the cash advance companies.

Let us understand it with the example of a delivery messenger business and its requirement of immediate cash that is fulfilled by business receivable factoring financing. The many orders for messenger service require the business owner to pay a lot of labor to get the packages delivered.  If you multiply this service to multiple cities then you can see quickly how the business owner has to have a lot of working capital, especially when business clients only pay their invoices every 30 days.

Barriers in Cash Flow Smoothed by Receivable Factoring Financing

The entrepreneur of the delivery or messenger services need to pay their employees salaries every 1 to 2 weeks, and the immediate need of fuel to the vehicles that are used to make the deliveries. The owner cannot wait for a bank’s slow decision making and burdensome requirements to halt the messenger operations…the owner cannot tell the client to wait for the next day while he collects his invoices in order to pay for the fuel of the vehicles, etc.

The Quick Fixes:

  • Get the business receivable factoring from service providers like PMF Bancorp (long time factoring finance company with experience is key to smooth growth). The business can receive immediate cash by selling its accounts receivables.
  • Factoringcan stimulate and keep the flow of the regular business operations without halting it due to monetary insufficiency.
  • Avoidinghigh rate merchant cash advance and many payment penalties involved.
  • No additional charges, the bank always charges along with the interest of taking on the loans.
  • No monthly loan payments needed.

What have we understood?

Business Receivable Factoring financing is the method for the immediate monetary requirements. Unlike loans or merchant cash advances, it is the money of the entity that is pending to be received…leveraging what you already own with no new debt. On the basis of these receivables, a third party commercial lender like PMF Bancorp grants the immediate advance for your business and becomes the engine for new working capital to drive your business to new sales heights.

Managing Short-Term Debts Efficiently with Accounts Receivable Financing

Financial Tips 06Short-term liabilities or debts include those aspects where businesses owe money to outsiders or their employees that have obligations to be paid within a year. Accrued payroll expenses and wages, accounts payable, short-term borrowings, lease payments, taxes payable, etc. are a few examples of short-term debts. When the amount of short-term debts exceeds total amount of current assets, a company’s financial position is not considered sound and management needs to take immediate action to rectify the course.

How can these short-term debts be Paid off?

Balancing Cash Flows:

While there is no escape from debts, ensuring steady cash-flows can maintain a healthy financial position. With sufficient cash in hand, paying off bills becomes easy and can be paid on time. This gives confidence to keep the cycles running.


Businesses find it easy to finance a debt through short-term loans or overdrafts from banks. While this is not a good sign to clear debts by incurring new loans, businesses can do this by paying off loans that carry high interest rates with loans that carry a lower rate of interest to reduce some of the burden. This is also known as transferring of debts from one head to another. But, it is advised not to use short-term borrowings to finance long-term loans as it will eat into your working capital needed for operations.

Accounts Receivable Financing

A businesses best use of funds is to use short term assets to pay short term liabilities, like increased payrolls or increased inventories.  Longer term debt should be saved for capital improvements that have a longer horizon on return.

Accounts receivable are often a businesses sore point because their customers like many others do not pay on time.  Delays in payments from their customers is the basic reason why businesses incur more debt and have cash flow issues. But now with a reliable invoice factoring company in Los Angeles, most businesses here and many in other states are getting their unpaid invoices financed and utilize this amount to pay off debts.  Companies in other states often use accounts receivable financing companies in larger cities like Los Angeles because they have more experience with larger varieties of companies due to the larger Los Angeles’ size and range of businesses. By resorting to accounts receivable financing, businesses, these businesses can immediately get funds right after completing the delivery of goods or services almost regardless of their industry due to the experience of larger factoring companies in the bigger cities. Therefore, with funds in hand, paying debts becomes easy.

No more waiting for payments as AR Financing takes only hours to get done, thus reducing the cash conversion cycle.

80% of business failures are due to failed finance and working capital management.  Highlighting the importance of the current assets and liabilities, a good performing business can see downfall if its receivables fail to produce cash when required. As majority of cash is sourced from receivables, a/r factoring is a great option for businesses to manage their funds smartly. Excess debts are detrimental and businesses must handle them diligently.

Improving Credit Score with Accounts Receivable Financing

business line of credit los angeles
Get a line of credit and clean up this Spring!

Let’s face it – unsteadiness of cash flow cycle is the worst nightmare for a small business and there is sometimes seem to be no escape, but the right kind of financing such as accounts receivable financing may be your solution. Uneven cash flows restrict growth of businesses, leading them out of business due to heavy competition.

In the process of building relations with your customers, businesses often extend trade credit or terms to their customers and in turn have to wait long periods for their payments. Situation worsens when suppliers start knocking the doors for their payments. Again, many other irregular expenses crop up that need immediate attention and meeting all these can be back-breaking. Business owners run errands for loans or request help from other sources to bail them out of such situations.

How Credit Score Matters?

When banks give out loans, they do it thorough credit checking the borrower through 3rd party credit bureaus to safeguard their potential loan and collateral. Due to irregularity in cash cycles small businesses have poor performance history in paying suppliers, which in turn affects their credit ratings. Many small businesses with low credit scores find it difficult to qualify for bank loans. It is imperative for businesses to have good standing credit score.  Accounts receivable financing is the process of converting invoices to immediate cash.

How to build your credibility with Accounts Receivable Funding?

Dwindling cash flows are the reason businesses perform poor and have low credit scores. Getting receivables factored can be the best remedy to manage funds while improving credit points. Most businesses in Michigan as well as other business in many other states use accounts receivable financing for instant access to cash. With minimum credit requirement, businesses can combat their cash flow issues and focus on their performance and credit scores. Factoring invoice financing can also assist in rebuilding a company’s business credit because the business will now have the working capital to pay their suppliers on time, or even early.  The payment to your supplier will most likely be recorded by one of the 3rd party business credit bureaus and improve your company’s credit score.  Among the many benefits, this is another real positive from financing invoices via factoring.

For businesses in Michigan as well many other across the country, finding a reliable invoice factoring company can solve most of their cash flow problems.Factoring companies in Los Angeles have extensive experience not only providing factoring but other commercial lending products so going calling on a firm like PMF Bancorp that has been providing commercial lending for decades is a very safe call when looking for cash flow solutions.

Effects on Business Credit Score

  • Businesses see immediate cash-flows and can clear-up all their outstanding expenses and debts. Leads to a better credit score.
  • Timely payments to suppliers increases their trust on businesses and builds good relationship. A good relationship with suppliers can result in better discounts and offers. Leads to a better credit score.
  • Businesses get access to funds without adding to their debts. Lowers overall debt. Leads to a better credit score.
  • With more working capital in hand businesses can stretch their limits to accept new assignments, thus increases sales. Leads to a better credit score.

For small business owners and entrepreneurs with low credit scores, getting access funding is challenging. Building a trustworthy reputation takes time and invoice factoring is one best alternative to improving cash flow and growing your business.  This all leads to a better credit score.

4 Questions a Business Owner Needs to Ask at the Year-End Review…

Be certain to do a financial review of your business annually!
Be certain to do a financial review of your business annually!

It’s that time of year again! 2017 is right around the corner, and for many business owners that means doing a financial review of the progress they made in the past twelve months.

The year-end review is important for a number of reasons. It allows you to measure your business’s growth and progress so far, it gives you a benchmark for the following year’s goals, it identifies possible financial issues that exist or could potentially arise, and it helps you plan for the following year by identifying strong periods and slow ones. Here are the 4 questions that should be asked:

1. How much money did you make?
A strong sign of a healthy growing business is if your annual net profits exceed that of the previous year. You will also want to review performance on a quarterly or monthly level as well in order to determine which periods were the most profitable for your business.

2. Did sales perform better or worse than expected?
Unlike gross profit, revenue is simply the amount of money the company gained from sales activities. You should compare each period’s total sales revenue to both external and internal factors. This will allow you to determine whether or not sales varied because of factors such as new competitors entering the market or if a marketing campaign was ineffective.

3. Were your expenses on budget?
It’s important to pay close attention to your expenses because even small changes can make a significant impact to your bottom line. With this in mind you want to find out where expenses deviated from your annual budget and why. This information can then be used to reduce costs the following year or adjust your budget accordingly so that you can create more accurate goals for sales and gross profit.

4. When was cash flow the tightest?
Most businesses experience periods in the year when cash is low. You will want to know when this happened and why. Knowing when these periods occur, will allow you to create a more successful financial strategy. In any business that sells on account, cash flow lags sales by the average receivables aging. If your sales are low in the summer and increase in the fall, your cash flow will be lower as you move into your busier season and you will not have the cash available to support your growth. Here, if you want to consider adding financing options to reinvigorate cash flow, your plan should include invoice factoring financing, small business loans, and / or a combination of programs for maximum effectiveness.

These four questions will provide you with some very valuable information that will play a vital role in your plans for the upcoming year, especially if you plan to grow or expand your business. You can use these insights to determine which times of year would be the most profitable, which strategies are the most effective, and which financing solutions would be the best choice to fund new projects. PMF Bancorp’s hands on assistance and experience allows are clients to arrive more easily and solve their financial needs through are many flexible working capital programs.