Xynergy Commercial Capital LLC

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1 Xynergy Commercial Capital LLC How Can Work For You

2 The Problem Short of cash and must pay suppliers, lease, bills and salaries? No need for stress, get your payments in advance for your invoices and pay all your bills on time. Factoring can immediately improve the liquidity of your company using your own resources 2

3 Cash Flow Paralysis The result of your customers paying you in 30 days or more burdens you with the expense of LOST OPPORTUNITIES: Paying your bills on time or taking early pay discounts Maintaining an inventory Paying staff Staying current on lease or equipment payments Increased marketing and sales opportunities Growing you product line or services 3

4 Cash Flow Paralysis Can traditional financing options solve this problem? Is your credit profile sufficiently strong for bank loans given today s lending environment? Do you have strong and ample collateral? If A/R is your only asset will a bank lend on that, only? Do traditional loans grow with your growth pattern? 4

5 The Best Solution FACTORING ACCOUNTS RECEIVABLE Your credit profile is of little significance A/R is the collateral, an ever growing, ever present asset XYNERGY COMMERCIAL CAPITAL We understand this asset Your availability of funds grows with increases in your A/R You get paid once you complete your service or deliver your product 5

6 The Best Solution FACTORING ACCOUNTS RECEIVABLE Not debt, so no balance sheet entries Use it as often as you need Get an infusion of cash from your first funding of qualified A/R No application fees* *There is a due diligence fee due upon Xynergy presenting a Term Sheet, it is refundable unless the client causes the transaction not to be finalized 6

7 Do You Qualify? YES IF you do business to business or business to government IF you issue invoices with terms not exceeding 60 days IF your business is profitable however in need of cash flow IF you are in growth or survival mode 7

8 The Best Solution Will Disrupt My Business? NO You just continue to provide your services or products as usual Funding is provided once you have invoiced your customers following the completion of your services or delivery of your product 8

9 Factoring - Advantages Easy access thanks to less requirements. Financial leverage based on the creditworthiness of the debtor. The availability grows as revenue grows. Instantaneous results. Does not generate a liability. Immediate liquidity over your assets to: Obtain prompt payment discounts Increase revenues Expand products and services 9

10 Factoring - Benefits Collect your invoices Save time. XYNERGY receives your collections Confirm your clients creditworthiness Leverage your balance sheet Do not generate financial liabilities Use your bank credit for long term investments Leverage your liquidity on your clients good credit rating Customize it Define your funding level (according to the invoices you want to discount) The discount factor depends on the perceived risk for the operation (customer creditworthiness, receivables turnover, and number of clients) Your resources will increase as your sales grow It is a business tool You can provide better terms of payment than your competitors Negotiate terms of payment, not price reductions Keep your margins intact by including the price of factoring in your sales price Improve your relationships with your suppliers Become a good customer that pays his suppliers on time Get lower prices and better terms of payment Get extra resources through discounts from prompt payment 10

11 Factoring - Definition A form of asset based finance, although not a debt instrument, it is the process by which a business obtains current cash flow by periodically and frequently selling its Accounts Receivable. Regularly, the risk is more geared towards the companies that owe the payment (debtors) and less towards the Factoring Client because the invoice is a liability accrued in the Accounts Payable of the debtor and the success of the transaction depends on its payment. A Factoring Agreement is executed between Factor and Supplier with all details of functions, rights and obligations of both parties. This contract normally does not involve the debtor, it is linked using a Notice of Assignment which is defined within the Article 9 of the Uniform Commercial Code (UCC). 11

12 Factoring How Does It Work? SUPPLIER Which delivers the product/service and issues an Invoice DEBTOR which receives the product/service and agrees to pay XYNERGY Advances payment to SUPPLIER and Collects payment from DEBTOR 12

13 Xynergy Commercial Capital LLC When you deliver your services or products to your customers, and then you have to wait for payments, You have become a lender to you customers! Avoid cash flow paralysis as a result of having to wait for payments from your customers! How Do You Learn More About Accounts Receivable Finance? Call Us! 13

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