Occasionally, financing for materials will be required in order to produce a product for sale. Typically, a factoring relationship supplies the exit strategy for the purchase order financier. Companies needing purchase order financing usually need two years in business, and a very strongly worded purchase document is a prerequisite. When a business is not able to promptly fill a customer's purchase orders, it can be in real danger of losing those orders and the potential profit they represent. Worse yet is the potential loss of any future orders from that customer.

When bank financing is not available or sufficient and the cost of additional equity is too high, alternative financing solutions may be exactly what your business needs. Businesses should always examine the possibility of factoring their accounts receivable first as that can often give the needed cash to meet these needs and is also somewhat less costly. However when this avenue is not available, PO financing is exactly what you need!  Where the purchase order is non-cancelable and from a strong creditworthy customer, they can receive an advance of funds necessary to fill the order. Usually this will entail either direct payments made by one of our funding sources that specialize in purchase order financing to third party suppliers or the posting of Letters of Credit on behalf of its client.

PO is available to virtually all industry segments, with the explicit exception of construction. In practice, as soon as the purchase order is filled and an invoice can be generated, then our funding source will factor that invoice and use the initial payment to retire the purchase order advance and fee, with the overage going to the client. Obviously the second payment on the factoring will make up the balance of the profit for the purchase order financing client. If tight cash flow is preventing you from accepting new business or even threatening your very existence, get in touch with Funding Realities now!

Commercial Real Estate Development/Acquisition Bridge Loans

 

Traditional lending institutions take their sweet time to close on a multi-million dollar loan. We think your time is too valuable to waste. The Commercial Real Estate developer has a complex task in bringing a project to fruition. For large projects nationally and internationally, requiring $1-$100 million, our program is tough to beat. Bridge loan financing is an effective vehicle to immediately capitalize on a purchase opportunity. It is a form of short-term financing which is expected to be paid back - generally within the range of 6 to 36 months - once the borrower obtains more permanent, lower cost financing.

Expanding your business? Restructuring?

Sudden investment opportunity?

Acquiring property? Need funding for a merger?

In commercial property transactions, a bridge loan can give you a stronger negotiating position and enable you to buy a property without a contingency on the sale of your existing property. Bridge loans are often used for commercial real estate purchases, to quickly close on a property, retrieve real estate from foreclosure, and to take advantage of a short-term financing opportunity in order to secure long term financing. Speed is a bridge loan's number one asset.

Example: If you are trying to convert an apartment complex into condos and a bank will provide you with a sum of money only after a five month period, you might take out a bridge loan to finance your project while you are waiting for the bank.

Venture Capital

 

Seeking Venture Capital/Asset Based Financing or Commercial Mortgage Financing? Funding Realities can assist companies or individuals around the world requiring capital for Acquisitions, Joint-Ventures, Development Projects, Expansion of their existing operations, Refinancing for debt consolidation, Construction, Real Estate, Resorts, Hotels, Office Buildings, Technology, Manufacturing, etc.

Finding Venture Capital/Asset Based Financing, Loan Guarantees or Commercial Mortgage Financing has never been easy. Raising capital has always been about whom you know, not what you know. Entrepreneurs and small/medium sized businesses are often forced to spend disproportionate amounts of their time and money identifying potential investors, seeking project financing, marketing their deals, and responding to due diligence requests. Unfortunately, such effort seldom yields a satisfactory probability of success. In today's challenging market environment, raising capital in the private markets is more difficult than ever.

What we have to offer, in helping you achieve success is not for everyone. As you will learn, we do not take on every person who seeks our help.    However, if you have been turned down for conventional funding or you have run into difficulty in structuring a deal because your project falls outside the "normal" development scenario... if you feel the window of opportunity is closing and feel beaten by "system" and most importantly, if you're willing to take on part of the work and really be involved in your own funding process, contact us today!

The strategy we employ is quite simple: be honest and open with each other about all aspects of the process and success will come.   It is imperative to bring everything to the table so that we have all the information to work with. This includes your ideas, advice you've been given by others, or reasons others have given you for not being funded. All of this knowledge helps us in charting a course of action.

Private Mortgage Notes

In the United States, 200,000 homebuyers rely on the home seller rather than a financial institution, like a bank or mortgage company, to provide home financing. Often these homebuyers either do not qualify for a traditional mortgage or because the home seller is interested in maintaining a long-term income stream. Funding Realities provides an option to note holders nationwide who are ready to sell their home and use the equity for their own purposes.

• Debt elimination
• A college education
• A medical emergency
• Starting a new business

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Funding Realities is also networked with a variety of factors who specialize in the purchase of diversified cash flow instruments such as business notes, non-performing consumer debt, non-performing commercial debt, structured settlements, royalties, lotteries, viaticals, mortgages, automobile notes, recreational vehicle notes, and a variety of other cash streams.