Asset based business loans, frequently asked questions: BFI Business Finance®



Funding Business Success®

	Frequently Asked Questions
		Here are some answers to frequently asked questions about obtaining business financing from BFI®. Please don't hesitate to contact us directly at 800-858-7144 or email us at info@bfifinance.com with any additional questions.
		What type of business loans do you provide? What are your interest rates? What is the difference between Accounts Receivable financing and the Accounts Receivable Management Program (ARM)? Do you notify a borrower's clients of the assignment of accounts? Are changes in accounting procedures required? How long does it take to obtain business financing? What makes BFI® different from factors? Are Government and Foreign accounts receivables eligible for business financing? How much financing will you provide? What are some of the benefits of financing accounts receivables? Is it necessary to borrow against all accounts receivables?
		What type of business loans do you provide? BFI® provides Accounts Receivable, Inventory, Equipment, Technology Finance and Accounts Receivable Management Service (ARM). Our typical customers are businesses with bright futures that face challenges such as under-capitalization and lack of consistent profitability. What are your interest rates? Rates start as low as prime + 4 with a low monthly administrative fee. Rates for Accounts Receivable Management Service (ARM) start as low as 2% per month. Rates on both plans are calculated on the average daily loan balance. What is the difference between Accounts Receivable financing and the Accounts Receivable Management Program (ARM)? The Accounts Receivable Management Program (ARM) allows a client to borrow against specific accounts and is designed specifically for undercapitalized companies, companies with concentrations, or companies with smaller borrowing needs. Do you notify a borrower's clients of the assignment of accounts? Under the Accounts Receivable financing product, notification is not normally required. We realize how important it is for a growing company to maintain confidentiality. Collections are made directly by the borrower on behalf of BFI®, or by establishing a lock box arrangement. Are changes in accounting procedures required? No. In most cases, when financing accounts receivable, our clients invoice and collect their accounts as usual. At the same time, copies of invoices are sent to BFI® for each advance. When payments are received, they are forwarded to us to be applied as payment to the business loan. How long does it take to obtain business financing? Normally, we can pre-qualify a prospective borrower within 24 hours of application and provide funding within 5-10 days. Once an account is established, we provide loan advances within 24 hours of assignment of accounts. What makes BFI® different from factors? We calculate our interest rates on the loan balance rather than the collateral balance. Generally, financing costs are significantly lower than factoring. The most important difference between BFI® and factors is that we normally do not require notification of assignment to a borrower's accounts. Are Government and Foreign accounts receivables eligible for business financing? Yes, government receivables are normally eligible for financing as well as foreign accounts that meet reasonable credit criteria. How much financing will you provide? BFI® makes loans ranging from $100,000 to $5,000,000. What are some of the benefits of financing accounts receivables? Accounts Receivable financing can enable a company to increase inventory, finance growing sales, meet payroll and operating expenses, purchase new equipment, and take advantage of trade discounts. Is it necessary to borrow against all accounts receivables? No. Clients may borrow only when and as they need to for working capital. Interest is calculated only on the average daily loan balance.