Alternative Funding FAQs
Alternative Funding is a long-standing and increasingly utilized financial tool that speeds up the cash flow a company has available. Many subcontractors, manufacturers and suppliers leverage this powerful advantage by working in concert with alternative funding sources who purchase their creditworthy accounts receivable at a small discount and convert their invoices into immediate cash.
A well-orchestrated partnership with an Alternative Funding company can relieve the working capital shortfall that can occur with slow-paying clients, growing businesses, seasonal or cyclical growth spikes and other business challenges. This accessibility to earned cash helps businesses stay current with their financial obligations so they can readily grow and focus intently on creating more sales, providing more service, and manufacturing more products.
- Business start-ups which cannot yet qualify for traditional financing
- Rapid growth companies
- Companies needing capital that do not want to create debt
- Companies needing capital that do not want to give up equity
- Emerging companies with limited capital
- Companies with questionable earnings trends
- Companies with payroll tax problems
- Companies with cyclical or seasonal growth spikes
- The Client completes the American Prudential Capital agreement to fund
- American Prudential Capital approves the credit of the Client’s Customers
- Client delivers invoices to American Prudential Capital
- Invoices are verified and funded by American Prudential Capital
A common question asked by potential Alternative Funding Clients is:
“What will my Customers think about my Company using Alternative Funding?”
Very simply put, most Customers today already have other subcontractors, manufacturers and suppliers that are engaged in Alternative Funding relationships. They are familiar with the process and its benefits. In fact, they may actually gain more confidence in your Organization knowing that you have a funding facility in place that will help insure the delivery of your product or service.
The Alternative Funding business in the United States has truly come of age and is viewed as a phenomenal alternative finance strategy for many businesses.
The Alternative Funding volume in the United States now exceeds $150 billion annually and chances are that your Customers already have several vendors, like you, that use Alternative Funding to improve their cash flow, grow their businesses and provide greater levels of products and services to their Customers.
Consequently, Alternative Funding should not adversely affect your relationship with your Customers and, in fact, should position your Company to acquire and execute greater levels of work for your Customers of choice. Your Customers should now have increased confidence that you have the cash flow necessary to satisfy their needs.
Significantly Increase Cash Flow Of Your Business
- Earned cash is available for qualified receivables in as little as 24 hours
Use Readily Available Cash To Grow Your Business
- Funds generated by Alternative Funding can be used for new equipment acquisitions, inventory purchases, marketing expenditures, facility improvements, etc. that otherwise may not have been feasible when you needed them most.
The Process Is Very Efficient And Reliable
- Once approved, our clients trust American Prudential Capital for a user-friendly approach to doing business each and every month. Payments to our clients are dependable because we understand what a predictable stream of cash can mean to the life of any business.
Use What You Need When You Need It
- There are no required monthly minimums for Alternative Funding and no long-term obligations. We recognize that Alternative Funding should be a “bridge mechanism” to more traditional financing and that typically our services are a season in the life of most businesses.
Capital Availability Is Flexible
- Alternative Funding is the only means of business financing that can grow proportionally and immediately with your business as you need it.
Minimize Internal Cost Associated With Collections
- Your company will spend less time on collections since we take on most of this task. Therefore, you can focus more of your efforts on higher value-added activities such as sales and production.
Better Knowledge Of Your Customer’s Credit
- We are extremely proficient at verifying your customer’s credit and ultimately their ability to pay your invoices. This enables you to make more informed decisions on where to target your efforts for the greatest gain and minimize your bad debt write-offs.
Leverage Your Customer’s Credit Rating
- Your customer’s good credit rating is one of the strongest assets you can have with Alternative Funding. It is their positive history as much as anything that makes this process work for you.
Alternative Funding Is Not A Loan
- No debt is created with Alternative Funding so there is no negative impact on your financials. You are not using long-term debt to satisfy a short-term need for cash. This increases your appeal to traditional financing because Alternative Funding creates cash in your bank account not debt on your Balance Sheet.
Take Advantage Of Early Payment Discounts Supplier
- Minimize some of your Alternative Funding costs by leveraging supplier offered discounts for early payment and simultaneously increase your credit rating.
“As a subcontractor in the Commercial Construction industry for nearly 12 years, I understand how difficult it can be to survive in a competitive market which is characterized by seasonal fluctuation and increasing demand for strong performance. My association with American Prudential Capital has been a lifesaver for my business. Not only have I received the financial assistance that I needed, but my good friends at APC have been there to help me make right decisions for our company. What I discovered by utilizing their service was that they truly care about their clients and want to help others succeed. The degree of integrity with which APC conducts its business is unsurpassed. I trust them completely and I would highly recommend their services to any organization.”
CEO of a Commercial Cleanup and Environmental Remediation Firm
“American Prudential has been Alternative Funding Allrail invoices for over a year. They have been absolutely great to work with. Very simple process administered by a solid group of professionals. I have no reservations about referring this company to anyone.”
A Railroad Services Firm
“We have been associated with American Prudential Capital using their Alternative Funding services for over 7-years. Their helpful and dedicated staff has been a great asset to our business. The Alternative Funding services are a great help with our cash flow that enables us to receive payment for our services within 24-hours after delivery. This helps us to manage our materials cost for new orders to meet the needs of our customers.”
A Welding & Fabrication Firm