Over the past 20 years, Primary Funding Corporation has built a reputation of honest, ethical behavior in the industry. We firmly believe that you should be interviewing your finance provider just as much as they are interviewing you. Ask questions and make sure you know who you’re getting into business with. Every business says that they provide great service. In reality, you won’t know that until you have a chance to experience how your provider treats you over time.
Request references. We are happy to provide you with current client references so you can see how we treat our clients. You can actually call them and ask them how we treat them on a day-to-day basis, as well as how we’ve treated them during challenges they’ve experienced. We take pride in our service levels and we encourage you to check us out.
Here are some things that make us different than many other finance companies:
- Month-to-Month Contracts: We will not lock you into long-term contracts. We are confident in our services, but if it is not working for you, we will not charge you a prepayment fee to get out.
- Dedicated Account Executive: You have a dedicated Account Executive that manages your account, including credit management and collections. You will have a true relationship with your AE.
- Experienced: Our Executive Team has a combined 50 years of commercial banking experience and we can provide a consultative approach to your business. We have helped hundreds of businesses over the years in a variety of industries.
- Straight-Forward Pricing: You will understand our pricing with no surprises. We have no hidden charges or fees. We rely on referrals and we understand the value of open communication and being up front.
- Direct Lender: We are a direct lender. You can talk to the decision maker eliminating the phrase “Your package is at underwriting.” Some finance providers are intermediaries and they are sending your request out to direct lenders.
- Honest/Ethical: We are active members of our community and we take our reputation seriously. We network with other high-level service providers giving us the ability to provide you with other resources to add value and help you succeed. We give back to the community through involvement in a variety of philanthropic organizations.
If you want a better experience, with someone that you can trust, consider Primary Funding. We encourage you to check us out.
Accounts Receivable / Asset Based Lines
There are a number of things to be aware of and many important questions to ask, particularly when you are trying to secure an accounts receivable factoring line. Keep the following in mind:
- Ask about the term of the factoring agreement. Is it month-to-month, 6 months or annual?
- Are there monthly minimums?
- Are there prepayment penalties to get out of your contract?
- How long does the company hold your reserve funds and how frequently do they perform reserve releases?
- Can your rate change during the term of the contract?
- Are there administrative fees that are added to the cost of factoring?
- Do you have a dedicated Account Executive and what exactly do they do for you?
- Does your Account Executive perform your collection calls, or is it a separate person?
- Do you have access to speak with the decision makers at the factoring company?
- How quickly can you get your new customers approved?
- Can they provide existing customers that will endorse the company and how they are treated?
Equipment / Cash Advance Loans
Beware: Some companies will provide you a term loan that is paid back through daily or weekly debits from your checking account. In most of these cases, they immediately add their fee to the amount you owe. For example, if you want to borrow $50,000 they will charge you a $20,000 fee that is added at the beginning of the loan.
On DAY 1 you owe them $70,000. If you were to choose to pay them off.
On DAY 2, you have to pay them back $70,000 even though you only borrowed $50,000!
In most cases, these finance companies target a repayment period of 8 to 12 months through taking a percentage of your credit card sales or auto debits from your checking account. This ends up being a VERY HIGH interest rate. Think about this. When you are paying off this balance over the course of one year, the average outstanding balance of the money that you actually borrowed for the year is roughly $25,000 because it starts at $50,000 at the beginning of the year and ends at $0 at the end of the year. When they charge you a $20,000 “fee” at the beginning it actually means you are paying that $20,000 fee based on a loan that has an average balance for the year of only $25,000. This equates to an interest rate of approximately 80%…or higher if it’s paid in less than a year!
We encourage you to make sure you really understand what you are getting into before moving forward. At Primary Funding, we offer term loans at significantly lower rates than that. However, while these other finance companies only look at 3 – 6 months of your bank or merchant statements, we will want to underwrite your company. This includes understanding how long you’ve been in business, what your sales trends are, etc. We want to offer lower cost term loans by completing due diligence. That way, companies that can qualify for lower cost funding can get it. You can still have previous losses, poor credit or other issues, but we want to understand what you do and where your company is headed in order to give you a better rate.
