Program Details
On Demand

Borrower or Lender Be: Alternative Structures- PO Financing, Factoring & MCA



Content Partner:  Financial Poise
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Description:
Many companies, and most of any size, use borrowed funds as part of their capital structure. Depending on the nature of the business, its size, time in business, whether it has adequate collateral, and other factors, a business has myriad options when borrowing funds.

This webinar series provides a guided tour of the various borrowing options available to businesses, from both a business and legal perspective. Learn the advantages and disadvantages of different types of loans, how to select the right loan for your business, how to negotiate terms, and what happens in the event the loan is defaulted upon.

As with every Financial Poise Webinar, each episode is delivered in Plain English understandable to investors, business owners, and executives without much background in these areas, yet is also valuable to attorneys, accountants, and other seasoned professionals. And, as with every Financial Poise Webinar, each episode brings you into engaging, sometimes humorous, conversations designed to entertain as it teaches. Each episode in the series is designed to be viewed independently of the other episodes, so that participants will enhance their knowledge of this area whether they attend one, some, or all episodes.

Episode #3
Purchase-order financing (P/O financing) is a type of asset based loan designed to extend credit to a company that needs cash quickly, to fill a customer order. A company may operate with such a small amount of working capital that it cannot afford to pay the for the cost of producing a customer’s order. P/O financing enables such company to not turn away business, by borrowing from a lender using the purchase order itself as collateral to support a loan.

Factoring is one of the oldest forms of business financing . Note that the term is “financing” rather than “loan” because factoring is not actually a loan. In a typical factoring arrangement, the company needing financing makes a sale, delivers the product or service and generates an invoice. The factor (the funding source) then purchases the right to collect on that invoice by agreeing to pay the company in need of financing the amount of the invoice minus a discount.

MCA lending is, in summary, an advance on a company’s sales. Financing through a merchant cash advance (MCA) is used mostly by companies that accepted credit and debit cards for most of their sales, typically retailers and restaurants. The concept is this: funder purchases a portion of the company’s future credit card receivables for a discounted lump sum. The MCA funder receives the purchased credit card receivables as they are generated either by taking a percentage of the company’s daily credit card proceeds or by debiting a certain amount of funds from the company’s bank account. Depending on the risk profile of the company, it can be a more expensive form of financing for a business compared to other types of financing.

What these three things have in common is that they are each a type of “alternative lending.” Alternative to what ? To the type of loan a company can get from a “regulated” commercial bank. This webinar explains these types of financing arrangements, what to consider before entering into them, and provides some tips on how to negotiate them.



Practice Areas: Banking & Finance Law, Business Organizations & Contracts
Online Media Type: Audio
Production Date: 03/21/2019
Level: Basic
Category: Standard
Duration: 1 Hours, 2 Minutes
Online Format: On Demand

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Purchase of this product provides online access for 180 days. If you are purchasing a live webcast, you will receive complimentary access to the on demand version for 180 days once it becomes available. Please note that the on demand and podcast versions may, or may not be accredited in your state.

If you intend to take a course for CLE credit, please make sure your state is listed in the "Accreditation" section to the upper right of the program description. Accreditation displayed is unique to the purchased program format (live conference, live webcast, on demand, podcast). Credit totals listed for live conferences are the maximum credits available. Credits issued will be based upon actual time in attendance.  Credit totals for other formats are for complete programs.  Partial credit is not available for any online or downloadable format. 

 

West LegalEdcenter will not provide accreditation for states not listed. 



This product is intended for individual use by the named purchaser. Group viewings for online programs may be arranged for five or more attorneys within the same organization prior to viewing by emailing sales@westlegaledcenter.com.







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Accreditation:
AK, AL, AZ, CA, CEU, CO, CT, FL, GA, GU, HI, IL-EXPER, IL-NEWADMIT, IN, ME, MO, MS, MT, NC, ND, NH, NJ, NV, NY-EXPER, NY-TRANS, OK, ON, PA, PR, QC, TN, UK-BSB, UK-SRA, UT, VI, VT, WI, WV
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Total Credits: 1
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Status: Reciprocal Credit Available
Expiration: 03/20/2022
Training Type: Online

West LegalEdcenter provides accreditation as described here. You may be able to self apply for credits in states not listed.

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Speakers:
Rebecca Fruchtman - Assistant GC, Bank of America/Merril Lynch, Chicago
Paul Schuldiner - Rosenthal Trade Capital, NY
Jason Goldberg - IDB Bank, NYC
Avi Levine - Star Funding, Inc. NYC
This product is designed to provide information in regard to the subject matter covered. It is sold with the understanding that the publisher is not engaged in rendering legal, accounting, or other professional service. If legal advice or other expert assistance is required, the services of a competent professional person should be sought.


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