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The goal of PMF Bancorp is to be an effective resource for our clients. Whether providing access to invoice factoring, lines of credit or trade financing, PMF Bancorp is a trusted source in the financial industry. By delivering the information you need, we know from experience that we can help your business manage capital and increase profits. As part of our program, PMF Bancorp offers this ongoing series of monthly financial tips to help your company thrive in a challenging economic climate.

If you want your company to maintain its profitability, frequent reviews of the cash management structure of your business is essential. Such periodic examinations can help you identify both where your business is doing well and where it needs work. By tracking all the measurable upsides and downsides of your cash flow and how those finances are being managed, you clearly can identify potential improvements.

Another positive that comes from instituting this periodic process is you ensure the reliability of your company’s cash management data, checking past financial statements and making any corrections when needed. In terms of bank relationships, all accounts can be reviewed and managed with a complete awareness of both existing investment portfolios and overall account health. Such information provides you with an ace in the hole when it comes to obtaining future loans and identifying specific company needs in relation to both market share and possible future expansion.

When needed, the financial experts at PMF Bancorp can help you set-up this process by advising your company on our past experience and learned expertise with similar business ventures. To gather the information you need, appoint an in-house team to develop an in-depth questionnaire that is handed out to all involved parties and company divisions prior to each review.

For more information on how PMF Bancorp can help take your cash management to the next level of excellence, please click here.

In a challenging economy, rather than trying to increase the flow of investment capital, banks become more and more unwilling to lend money to small businesses. Luckily, there is a viable answer to this problematic bind that so many small business owners are facing as they try to find essential funding. Factoring companies like PMF Bancorp can fill the financial void through Accounts Receivables Financing and Factoring.

When U.S. Bancorp commissioned a survey of 1,004 companies nationwide with annual revenue of $10 million or less, the frightening results showed that less than a third of those surveyed believed their banks were doing their jobs well. “When it comes to basic financing and other business services, the banks are no longer stepping up to the plate when needed” states Stephen Perl, CEO of 1^st PMF Bancorp. Smaller companies still have many needs such as buying goods, meeting payroll, and even seizing upon various market opportunities. What is your small company supposed to do to ensure success in such a hostile banking environment?

The clear and logical answer is factoring and accounts receivables financing. As a smart alternative to traditional banks, PMF Bancorp is a leading commercial lender, trusted throughout the banking industry.  PMF Bancorp provides businesses with capital when needed on a flexible formula basis that is proportional to sales. The factoring or trade financing “lines” grows as the sales to credit worthy customers increase. In other words, PMF Bancorp gives our clients the ability to capitalize on market opportunities and expand their business. After all, PMF Bancorp believes in prosperity and the ongoing success of the American economic model. The name of our investment game is growth and optimism, not fear and pessimism.

Accounts receivable financing allows a company’s balance sheet to remain strong and flexible. A full service provider, PMF Bancorp purchases invoices from your clients and does not take an equity position. Clients incur no debt and maintain control of their business. Unlike banks, PMF Bancorp does not require the lengthy process, personal credit score, business history and the multitude of red tape necessary for traditional debt. If you choose the PMF Bancorp factoring option, you can have cash in hand within the week.

The goal of PMF Bancorp is to help your company thrive by avoiding the cash crunch. Our factoring clients include not only manufacturers or distributors selling to retailers, but service-related industries as well like staffing, transportation, and international trade. PMF Bancorp is so popular because we provide our clients with an extensive package of financial management services. Our clients realize that factoring is not a last resort, but an effective financing option that makes more sense than traditional banking. If you want to know more about the package of services offered by PMF Bancorp, please do not hesitate and contact us today.

In a country where everyone seems to be addicted to debt, a positive change in perspective has been demonstrated on the financial web, site Bankaholic.com. Founded by John Wu, who turned a project from his student days at the University of California at Berkeley into a rapidly growing business, the site has about 750,000 visitors every month. It helps guide consumers and companies by presenting them with a variety of financing options. One of the positive alternatives that Wu has backed is invoice factoring and accounts receivables financing with companies like PMF Bancorp.

Founder and Entrepeneur John Wu has seen that both consumers and companies are focusing more and more on finding savings accounts and certificates of deposit as opposed to the old avenues of credit. But the banks still need to provide credit and loan money. As a result, they have significantly boosted their ad spending on the site. “Banks really need depositors to put money in them,” Wu said. “They’re desperate to get more money.”

However, the banks are not passing forward lower money costs made possible by the Federal Reserve cuts along to either consumers or businesses. Wu clearly points out that the interest rates on credit cards have dropped modestly at best, and 30-year mortgage rates have not declined substantially. “People have been expecting that credit card rates would come down. But because there’s greater risk now in lending, credit card companies have been raising their rates a little bit as the Fed has been cutting,” Wu commented in the Washington Post.

As a viable alternative for companies experiencing a cash crunch, Wu recommends invoice factoring and accounts receivables financing with companies like PMF Bancorp. He clearly reminds his business readers and company financial officers that they can factor their invoices without taking on any more debt. As a result, they both solve the cash crunch problem and keep the cash flow moving forward without taking on the burden of more debt at exorbitant interest rates.

PMF Bancorp appreciates the independent support of such financial sites like Bankoholic.com. If you want to learn more about our one-stop shop of excellent financial services and reasonable financing options, please contact us today. As John Wu pointed out, invoice factoring and accounts receivables financing could be the viable answer your company needs to remain productive and profitable.

PMF Bancorp has discovered over the many years that we have been in business that almost every single first-time client asks this question. Since we are a family-run business, we understand this worry and why it is such a common concern of most new clients. In today’s economy, however, such a worry is really not an issue to be concerned with. Rather than Accounts Receivables Financing being a black mark on your company, it reveals intelligence and flexibility in a challenging economic climate. Isn’t it normal for a smart business to have multiple lines of credit?

Factoring is little more than a line of credit that utilizes the accounts receivable of your business as collateral. It provides funds quicker and without as many hoops to jump through as when compared to traditional bank loans. In fact, having a factoring credit line in place can help you to place your business on a much stronger footing than your competitors. Unlike your competitors, you will have the advantage of being able to positively manage your cash flow and avoid cash crunches when unexpected circumstances arise. In addition, the financial experts at PMF Bancorp help you to take your financial planning capabilities to the next level of excellence.

What is intriguing is that you might be surprised to find out from many of your large customers and vendors are already familiar with accounts receivables financing because they use it themselves.  Many large public and private companies use factoring to increase their liquidity and cash flow.  Smart controllers implement factoring in many cases as a growth strategy when their sales are increasing to rapidly for a traditional bank to handle the accounts receivable financing needs.

A lot of our business comes from past clients recommending us to either their vendors or their customers. Successful word-of-mouth and positive outcomes are essential for any business to continue to grow and stay successful. Still, PMF Bancorp understands the initial concern, and we believe this worry can be effectively addressed.

If you are wondering what do you tell your customers, tell them that due to growth and to keep up with your cash flow needs, you have decided to factor your invoices. You can always provide a positive spin on the decision to employ accounts receivables financing. You can explain that factoring is a constructive step for your business and will allow you to continue providing your customers with the great service they have come to expect. And your customers will continue to have the same level of contact with you that they have always had in the past.

After all, it is not your business model or customer service that is being financed, but simply your accounts receivables. In fact, factoring with PMF Bancorp can also prove to be a benefit to your customers because it allows them the luxury of paying on terms if needed. You are not a financial institution with a successful history of lending and financing – we are and this is a big plus. If you let go of old negative conceptions that are based in fear and fantasy, you can allow PMF Bancorp to help take your business to the next level of productivity and profitability. Let us worry about when your customers are going to pay your invoices as you focus on the actual business of growing your business.

If you simply communicate proactively with your customers, it will go a long way in making the decision to factor your accounts receivable a smooth and clean. As a full-service institution, PMF Bancorp will be by your side to help you with the initial transition. Our goal is to make factoring work positively for your company.

In a challenging economy, PMF Bancorp realizes that cash flow is the key to maintaining the profitability and productivity of your company. Without the benefits of earnings as well as working capital, income levels cannot be maintained. Since you need money to make money, it is essential to keep open all possible channels to potential cash flow. If the cash flow suddenly stops, your company remains stuck as well. PMF Bancorp understands this reality, and we have a workable solution through accounts receivables financing and invoice factoring.

Invoice factoring and accounts receivables financing are positive techniques that allows your business to secure loans against your incoming invoices. PMF Bancorp’s mission is to make it less difficult for your company to achieve the working capital it needs when compared with the difficulties of getting a bank loan. As we all know, your outstanding invoices clearly mean that capital will be coming in, but not as rapidly as you might need.

As a result, PMF Bancorp lets the invoices serve as the collateral in order to avoid any cash flow challenges. Since the latest financial economic difficulties have once again afflicted small to mid-sized enterprises, the solutions that PMF Bancorp offers can fill in the gap. Our goal is to be a full-service provider that helps your company remain profitable and productive.

Here are four cash flow scenarios where PMF Bancorp solutions have proven to be the most successful and the most effective for small to mid-sized companies in the past:

1. Short-term unexpected cash crunch – Invoice factoring allows your organization to handle an unexpected cash crunch without doing damage to the profitability of your business model. We help you stay in business when times are tough.

2. Sudden need for new machinery or business resources – Often your business faces the challenge of needing new machinery or business resources to remain competitive. If you do not have access to the cash needed, your company finds itself in difficult straits. PMF Bancorp provides the funds when you need them.

3. Fulfillment of a contract demands more capital — When you have a big contract that needs to be executed, your company often finds that it lacks the working capital to turn what is needed into a reality. PMF Bancorp can fill in the gap.

4. Trade financing and international credit checks– When a new trade deal falls into place that can help take your business to the next level, you often need financing to make it happen. In addition to trade financing, PMF Bancorp provides international credit checks to make sure that your new partners are economically viable.

Without question, in today’s difficult economy, banks along with other lending institutions are making small and mid-sized companies jump through more and more hoops to obtain financing. Besides increasing their interest rates and hidden fees, they do not provide the funds within a time frame that works for your company. PMF Bancorp knows that invoice factoring and accounts receivables financing offer a better and healthier option. Within a few days, your company can have easy access to the working capital it needs to remain profitable and ensure future productivity.

The goal of PMF Bancorp is to be an effective resource for our clients. Whether providing access to invoice factoring, lines of credit or trade financing, PMF Bancorp is a trusted source in the financial industry. By delivering the information you need, we know from experience that we can help your business manage capital and increase profits. As part of our program, PMF Bancorp offers this ongoing series of monthly financial tips to help your company thrive in a challenging economic climate.

Many companies would like to be able to successfully predict their cash-flow needs. Here is how to do it….

Since cash flow tends to be uncertain, your company should employ a form of forecasting model to predict future cash-flow needs. The most basic forecasting method is the comparison and balancing of receipts and disbursements. When a company employs this best practice consistently, they develop use models that tend to provide even more accurate data. More advanced models should be based on all available sources of quantitative and qualitative business intelligence, including shipping data, sales orders, buying patterns and vendor contracts. In addition, your company should make such forecasts based on seasonal, monthly, and daily patterns.

As a result, your company can set financial forecasts under more specific criteria for short-term, medium-term and long-term projections. Short-term cash flow projections can track how a business unit is faring in the current economic climate. Medium-term projections can help in managing current economic trends and seasonal price fluctuations. Finally, long-term forecasts can help your company achieve recognized goals through the designing of and the setting up of specific financial markers.

If you want to set-up a system to integrate new information into the forecast as soon as it is available, employ a rolling format that considers incoming and outgoing bills and receipts. Rolling forecasts, simulation techniques, and web-based treasury software can improve future cash flow predictive accuracy. These and other new technological capabilities can be employed to truly bring your company’s financial forecasting abilities into the 21st century.

By establishing such accurate and effective financial forecasting methods, your company will remain productive through cash-critical periods. You will know what needs to be done in advance, avoiding unexpected cash crunches that can hurt a business. At PMF Bancorp, our goal is to keep your company profitable by ensuring such a productive future.

For more information on techniques to expedite and ensure your company’s present and future cash flow, please click here to learn more or call us at 877-763-2286 for more information.

PMF Bancorp understands the importance of managing your company’s receivables effectively to make sure you are paid in a timely manner. Here are some great ideas in creating more Cash-flow through better collections.

We are not suggesting that your company acts like a collection agency or use harsh tactics. We believe, however, that having a dedicated employee to monitor and follow-up on clients invoice balances is a priority. Any company that is doing over $1 million in sales should already have such an employee in place. If not, PMF Bancorp can help with recommendations and training suggestions to further the process along. The first thing PMF provides when starting the receivable finance / factoring process is an evaluation of the company’s invoicing and process of collection. PMF often finds its customers are not invoicing correctly from the legal language used in invoice to the method of processing for best collection times. Invoicing and collecting is an art to a certain extent and without an experienced person setting this function in a company, there will be inefficiencies guaranteed.

Often, PMF Bancorp can execute a portion of the collection process because our clients want a profession intermediary to make certain funds are collected most efficiently. We often do a better job because the invoice customer knows we report to all the business reporting agencies, we have legal means and the experience to collect which most customers do not want any part of. PMF’s function to assist our clients with their account receivable management ensures efficiency in collections and handling the clients in a delicate, but professional manner.

Depending on your customer base and the specific industry, hiring a full-time employee that manages the receivables can be a very successful strategy when used in conjunction with a bank with expertise in receivable management as well. As we all know, although profit and productivity reflect the bottom line, not every business operates in the same manner. There are certain rules that apply across the board. Simply following up with customers and making status calls 5 days before an invoice is due can help but often is not be the complete solution. Having a full-service financial company like PMF Bancorp in place to make follow-up calls often gets the attention of your customers and clients more effectively. Since they do not have a direct relationship with the bank, they become more aware of the call and often more willing to respond. For more information on techniques to expedite and ensure your company’s cash flow, please click here to learn more receivables management.

It’s true: large lending institutions are sitting on record breaking amounts of money while small and medium business scramble to get financing. We found this kind of discouraging article at Fortune magazine online. Here’s a sample –

“The biggest U.S. banks tell us they have spent the past quarter writing loans, renewing credit lines and generally being upstanding economic citizens. Bank of America (BAC) says it provided consumers and businesses with $144 billion in credit in the first quarter, Wells Fargo (WFC) ponied up $151 billion and JPMorgan Chase (JPM), swinging for the PR fences, claims to have lent out an improbable-looking $450 billion.

These guys are our economic heart?

Yet loan balances actually shrank from a year ago at all three banks in the first quarter, just as they did at their old pal Citi (C). This at a time when the too-big-to-fail four are being drenched with new deposits (see chart, right).

All told, average loans outstanding at  the fearsome four dropped 7% from a year earlier – a decline of $210 billion — even as deposits rose 5%.”

Read the entire article here.

PMF Bancorp Financial Tip of the Month: July 2011

The goal of PMF Bancorp is to be an effective resource for our clients. Whether providing access to invoice factoring, lines of credit or trade financing, PMF Bancorp is a one-stop shop of excellent services and precise analysis. By delivering the information you need, we know from experience that we can help your business manage capital and increase profits. As part of our program, PMF Bancorp offers this ongoing series of monthly financial tips to help your company thrive in a challenging economic climate.

Right off the bat, here is the most important financial tip, an essential point for all companies wishing to avoid a credit crisis. Anticipate cash flow problems and set up additional lines of credit before problems arise. When you act in crisis, you often make desperate choices that you later regret. When you act from a position of strength, you maintain and build the quality of your business.

Your company should setup business lines of credit when you least need them so they are in place when challenges arise. Since most business owners and C-level management are focused on marketing and selling their products, they often get caught off guard when working capital suddenly is in short supply. You scramble for a loan, forced into high interest rates and difficult payment options that are bad for your business. With a little planning, such shortfalls not only can be avoided, but also can be effectively addressed long before they become a problem. The financial services staff at PMF Bancorp are experts at turning this positive outcome into a working reality.

As an entrepreneur, you are naturally optimistic or you wouldn’t be in business. You are determined to increase sales and know the question is “when” and never “if”. With this perspective, locating a financial source when things are going well will help you prepare for future growth and potential challenges. Without question the best way to conduct business is to anticipate problems before they happen.

Please click here for more information on lines of credit and to see whether your company qualifies, we can help your company today.

Many entrepreneurs are finding it more advantages to use Accounts Receivables Financing than the traditional funding sources that have become so difficult to work with.  When your company needs to raise funds, you need to determine where to find the capital. In a challenging economy, many of the older financing options are less accessible: banks are tight and demanding, friends and family are trying to cover their own mortgages and rent, and angel investors are few and far between. This means you have to be more innovative in how you find capital to grow and/or keep your business operational. Moreover, you’ll need a resource that can provide the cash needed to fulfill new orders, pay staff and suppliers, and cover payroll tax obligations to the federal government in a timely manner.  You don’t have months to wait for approval from a bank, nor can you afford the high cost of money from a venture capitalist, or even giving up your hard earned equity to one. The longer you can avoid raising capital from these traditional sources, the bigger the piece of the pie you get to keep for yourself. One of the best ways to do this is to hook into the engine of the new American dream by using PMF Bancorp for Accounts Receivable Financing and Invoice Factoring (www.PMFbancorp.com).

Entrepreneurs Are The Engine Of Economic Success

Good cash flow is the number one determinant of success in business, and by factoring your invoices; you can access a proactive strategy that will keep your cash flow strong.  By demonstrating a consistent cash flow through accounts receivable financing, your business comes across as healthy to potential future investors. After all, factoring invoices is not like a loan. Rather, it is the utilization of your own financial assets to raise more working capital. Banks are lenders who base their financing decisions on you and your company’s credit worthiness. In contrast, invoice factoring is based on the credit worthiness of your clients and the quality of your account receivables.

To start a factoring line is as Easy as 1,2,3…

1)   Submit a 1 page application;

2)   Receive a proposal within 48 hours;

3)   Submit your clients/accounts to be factored;

Then PMF Bancorp quickly moves to approve your accounts, and you can be funded in 24hrs after account(s) are approved. Suddenly, your company can go from cash-strapped on Monday to cash-ready by the middle of the week. As an entrepreneur, you know how essential that switch in perspective can be to the ongoing success of your venture.

If you have questions about how PMF Bancorp can help turn this envisioned goal into a working reality, please contact our financing experts today (www.PMFbancorp.com).