PMF Bancorp has been a leading commercial lender in the U.S. for 30 years in the area of asset based lending with specialties in factoring and trade finance. Our team specializes in Supply Chain Financing with four offices in China to service our clients with US-China trade needs.
PMF has always fostered good relations with our banker and finance friends locally and abroad… We would like to welcome you to our Social Mixer next month.
PMF Bancorp welcomes the LA Banking and Finance community to join our commercial lending team for a night of music and networking at Wokano Restaurant in Santa Monica on Thursday October 11th at 6pm (until 11pm).
Through cash-in-advance payment services, an exporter can increase sales, profit while avoiding credit risk or the risk of nonpayment from the buyer by using 1st PMF Bancorp.
Since payment is received prior to the transfer of ownership of the goods, the risk is handled in advance and insured in many of these cases through PMF Bancorp. Wire transfers and credit cards are the most commonly used cash-in-advance options. The problem is that requiring payment in advance is the least attractive option for the buyer. After all, this method tends to create cash flow problems. This is where trade financing to expand international sales and credit insurance by PMF Bancorp makes the most sense to both parties. PMF Bancorp has experience financing, factoring, and insuring these types of transactions on both sides of an international transaction, particularly with Chinese factories / exporters and American distributors / buyers.
Cash-in-Advance Payment Services – A Tool for International Trade
Without question, there are certain trade situations, particularly on the international level, where cash-in-advance terms just make sense. If the importer is a new customer and/or has a less-established operating history, why take the risk? If the exporter’s product is unique, not available elsewhere, or in heavy demand, cash-in-advance terms can help to guarantee the acquisition. A third reason to focus on cash-in-advance is if the exporter operates an Internet-based business where the use of convenient payment methods is a competitive reality. In all of these cases, PMF Bancorp has experience helping to make a stressful negotiation into a working deal through a variety of trade financing options.
The problem is that when cash-in-advance is demanded without factoring and trade financing, it often is not a competitive option. Without the certainty that a financial institution like PMF Bancorp can offer, if full or significant partial payment is required prior to the transfer of ownership of the goods, the deal can implode on either side. Unless the seller sees no other option or the buyer has no other viable vendors, your company can lose out to competitors who may be willing to offer more attractive payment terms.
In a global market, customers and trading partners can be lost to competitors who offer more favorable payment terms to foreign buyers. Creditworthy foreign buyers, who prefer greater security and better cash utilization, may find cash-in-advance terms unacceptable and abandon the deal. This is where PMF Bancorp has an answer to address the needs on both sides. By providing legitimacy, credit insurance, due diligence, and trade financing, PMF Bancorp calms the waters, allowing smooth sailing and profitable deals to happen. If you want to know more about how PMF Bancorp can help your company with trade financing, please contact us.
As an integral part of foreign trade, international letters of credit can grow your sales by providing a secure and reliable means of payment. In simple terms, a letter of credit is a financial guarantee of payment separate from the sale. It is a way of reducing the payment risks associated with the movement of goods across international borders.
When PMF Bancorp provides trade financing, its letter of credit services come with the territory. With PMF’s letter of credit, we also make sure your clients are reliable and creditworthy. Naturally, letters of credit and credit checks go hand-in-hand. The goal is to provide the financing you need to complete the deal and help your business.
Letter of Credit Services and International Trade
The need for a letter of credit is a consideration in the course of negotiations between the buyer and seller. When the seller has doubts about the credit-worthiness of the buyer and wishes to ensure prompt payment, a letter of credit allows the deal to happen. If the seller is shipping to a foreign country, a letter of credit issued by a financing institution can ensure the safety because payment portion of the transaction is being handled by two independent third party financial institutions.
Letters of credit open doors to international trade by providing a secure mechanism for payment. Financing opportunities, such as pre-shipment finance secured by a letter of credit and/or discounting of accepted drafts drawn under letters of credit, are often available. The expertise of a company like PMF Bancorp with extensive international expertise and experience is made available to help complete trade transactions successfully.
If you are moving forward with an international trade deal, please talk with the experts at PMF Bancorp. By obtaining international letters of credit and doing a background check on your trade partner, we help to ensure both the deal and the accounts receivables. With an international letter of credit, what appeared at first to be a risky venture can turn out to be a profitable expansion for your company.
Export factoring is a form of financing for international trade that fills the finance void when export companies have difficulty accessing traditional bank financing in tight economies such as today. The economy is not just tough in America, but all over the world and often there are export sales to be made when domestic sales are slow. More than 50% of the S&P Indexed companies’ sales come from abroad. How can you make more profit using export factoring when you are selling goods and services across international borders.
The key is to create a strategic plan before initiating the export sale. One must plan the credit with the lender, terms of payment that fit with your order, and the type of financing best suited for the product.
The challenge is that in the export business the minimum time for payment is 60 days to 90 days due to production time of product. Such a payment lag creates a major cash flow crisis for many existing export companies.
Luckily, PMF Bancorp can help fill the void as a one-stop financial service provider to plan your cashflow strategy through their accounts receivable financing and export factoring (aka trade financing services).
Export Factoring Help
It is important to know your import partner’s credit so before accepting an international order, one must consult with their financial institution to gage the amount of credit and risk associated with the sale. PMF Bancorp constantly evaluates domestic and international credits for this exact purpose. PMF Bancorp has many tools to evaluate and control the risk for export sales. For example, PMF has specialty in evaluating Chinese companies’ credit and financing sales to various companies in this region through a network of branches it has in China.
One must strategize and remember to also negotiate a term of sale that fits the order size that it can handle safely. In many cases, a large order that requires extended terms is not feasible for small to medium size companies to accept. One must make certain that they have sufficient cash reserves for an extra 60 days beyond the payment terms as many export order payments can be delayed due to unforeseeable items such as custom inspections, ship delays, port delays, etc….
Lastly, one should make sure that they have selected the best financing product for the transaction. For goods that have volatile pricing such as electronics, commodities, etc., one should have a Letter of Credit or Bank Guarantee in place that guarantees payment. For items falling in the general merchandise category, export factoring can be safely used. PMF Bancorp provides its Trade Financing products to cover many international financing transactions so to learn which product may help your business best grow…feel free to contact us at +1-310-858-6696 or learn more at www.pmfbancorp.com
PMF Bancorp recently assisted with fundraiser for the Diamond Bar Business Association. This fundraiser assisted local schools to raise money for their various academic programs. Stephen Perl, CEO, clients, and other colleagues met with various political leaders such as US Congressman Ed Royce and US Congress lady Judy Chu to discuss financing out reach for smaller businesses not serviced by the larger banks.
CCPIT invited PMF and ChinaMart to a mayor conference it recently sponsored for for 29 Chinese cities. PMF’s executive team spent 2 days with over 400 delegates in conferences and networking sessions that concentrated on growing the strategic trade and investment primarily between the US and China.
United Nations SS-Gate Program in Shanghai has partnered with PMF Bancorp to provide financing to many growing Chinese companies looking to expand to the US. PMF’s new Shanghai offices will be collated at the United Nations head office in Shanghai. The current goal is to open 5 new joint run offices in cities throughout China.
Accounts receivable financing is a type of loan for securing fast working capital. This pro-business loan uses your company’s accounts receivable as collateral. By selling outstanding invoices at a discount to PMF Bancorp, we will provide your business with immediate cash flow.
As with an accounts receivable factoring line, the amount of value assigned to each account depends on the gross amount of the recievable, the credit worthiness and age of the specific receivables. Naturally, a more current invoice will be easier to process and provide the maximum value. The amount received from an accounts receivable financing line will be less than the total value of the invoices that your business assigns as collateral.
The repayment period for accounts receivable financing is generally shorter than for most other loans. Since payments are made as invoices are collected, the loan should be covered once all the invoices have been paid. In the majority of cases, the term for repayment is no more than 90 days.
The benefits for your business to use accounts receivable financing are clear and direct. By outsourcing your accounts receivable management to PMF Bancorp, you can free up collection resources to focus on other more profitable activities like marketing and selling your products. In addition, you can access working capital, enabling your business to overcome the problem of having the majority of your cash tied up in inventory.
As a direct result, you can focus on growing your business and bringing in more profit. Since accounts receivable financing does not require your business plan to be audited like traditional loans , it is a remarkably quick form of immediate cash flow for your company. By being proactive and taking advantage of our accounts receivable financing opportunity, you can go so far as to ensure the growth and even survival in periods of turbulent financial times .
Upon carefully considering your options, you will realize that the benefits of working with PMF Bancorp and financing your accounts receivable are too good to ignore in today’s challenging economic climate. Through this pro-business process, you can obtain working capital effectively and efficiently. At the same time, this initial financing choice can begin a working relationship with access to a variety of potential services. PMF Bancorp’s array of proactive services can help take your business to the next level of profitability and productivity. Beyond accounts receivable financing, these other services that we offers include factoring, leasing, trade financing, and credit insurance to assist your company’s growth.
For small business owners, wholesalers, and independent contractors, getting business financing is almost impossible in today’s challenging economy. Despite successful business ventures with incoming accounts receivables, their small size prevents them from accessing favorable bank loans and other forms of traditional financing. PMF Bancorp understands the challenges faced by small business owners, wholesalers, and independent contractors, and we believe factoring, accounts receivables financing, trade financing, and purchase order financing could easily provide a solution for many of these small business owners if they were aware of our services.
Invoice Factoring For Small Business Owners
For small business owners, wholesalers, and independent contractors, the extra level of difficulty is that typically, your largest receivables are from your largest clients and your cash flow as well as future ability to make money are all tied together. If your clients and customers fail to pay on time, it is more than your company that can be placed in a tight spot. Hiccups in accounts receivables delivery or cash flow it will immediately affect you on a personal level. With a history of helping small business owners with cash flow questions and problems, PMF Bancorp is the one-stop financial shop that you need to succeed.
Invoice Factoring With PMF Bancorp Is A Cash Flow Solution
A common problem that small business owners find is that most corporate customers often treat them like a regular supplier and demand credit terms. As a result, you have to deliver the work, perform the services, or provide the goods, then wait up to 45 or even 60 days before getting paid. Such a long waiting period is often a rude awakening as few small business owners or independent contractors can afford to wait this long for payment.
PMF Bancorp Is A One-Stop Financial Shop
PMF Bancorp delivers an alternative that has been gaining traction in small-business circles as a solution to this problem. Factoring and Accounts Receivables Financing provides a funding advance on your open invoices while ensuring that your customers are credit worthy using our credit experience. PMF Bancorp can help to provide small business owners, wholesalers, and independent contractors with the necessary cash flow that helps your business continue to survive. Beyond survival, we also can help you grow and prosper with a variety of added financial services.
An advantage of factoring and accounts receivables financing is that your clients do not need to pay their invoices any quicker. As opposed to a fixed size business loan, factoring lines are flexible because they are tied to your sales (not your equity and historical profitability). This enables the factoring line to increase as your business continues to grow whereas other loans cannot. If you want to know more and access a free consultation with our factoring and accounts receivables financing expert, please take the first step and contact us today and call us at (310)-858-6696.
Signs landmark “MOU” to increase US Exports to China while holding VP Xi Jinping’s Business Delegation at its Conference Center on Feb 16th, 2012.
PMF Bancorp hosted China VP Xi Jinping’s business delegation last month along with ChinaMart USA, Pepperdine University, Top Ten Wholsale.com and Manufacturer.com. Stephen Perl, CEO of PMF Bancorp signed an MOU to finance ‘Made in the USA’ products to China.
“Chinese consumers are crazy about American Made products because they know the quality is high. This is our next big market if we have the foresight and u.s government support to build the necessary relationships for business.” the largest Chinese chamber for general merchandise referred to as CCLA pledged their support in the joint MOU signed at the ChinaMart’s conference center February 16th, 2012.
PMF is no stranger to financing Chinese and U.S. trade. With headquarters in the U.S. and four offices in China, PMF has financed international trade program’s for the United Nations, Canton Fair, YiwuMart and many others.
