# Invoice Factoring by rmg15963

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```									              Calculate you Cost below:

1 What is your average monthly sales volume?           \$   100,000   Monthly

What is the current outstanding balance of your
2 Accounts Receivable?                                               Annually
What is the dollar amount of your annual cost of
goods sold? (COG: How much does it cost to
manufacture your product or provide your
3 service?)                                                          Annually

What is your Company's annual profit margin?
4 (percentage)

5 early? (If you don't know, you should ask them).             Yes
If yes, how much do they offer in discounts?
6   (percentage)
7   today?
What is the average annual cost of this
8   financing? (percentage rate)                                     Annually
write if you didn't have to wait on recievables?
9   (percentage)                                            70.00% Annually

How long does it take you to manufacture your

Question: Does Factoring - A/R Finaincing m
Complete the information above
and,determine for yourself if Factoring / A-
R Financing is the Advantagious choice for

Results >>>>>>>>>>>>>>>>>>>

Directions:

This suggests your annual sales volume equals                                       \$       1,200,000

Your Answer to Question #3 suggests an annual Gross Profit Margin of:                        100.00%

Yes

No

Bank

Family & Friends

Other Loan Sources
This would translate into an incremental dollar amount in sales of:                 \$        840,000

Results listed below:
Question: Does Factoring - A/R Finaincing make sense to you under this scenario?

Money Saved using trade discounts equals                                            \$             -
You could buy more product and make more sales resulting in additional gross
profit of                                                                           \$        840,000
You would eliminate your current financing cost of                                  \$            -
Gross profit increase if you utilize Factoring, A/R Financing                       \$        840,000
Potential cost of factoring (assumes a discount fee of .0009 daily for total days
from advance of funds to payment by debtor (your customer))                         \$            -
As a percent of current sales, your business profits could be increased by                    #DIV/0!
The average number of days that your A/R is outstanding equals                                    0.0
From the day you receive an order until the day you get paid, it takes                           30.0

If you receive payment upon delivery, you would improve your cash flow cycle by                 0.00%
10%     5
Annually   20%    10

25%    15

30%    20
0       40%    25

50%    30

60%    35

70%    40

75%    45

80%    50

90%   55
Annually   100%   60

125%
150%
175%
200%

Annually

Annually
Annually
Annually

Annually
Annually
Annually
Days
Days

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