Corporate Finance

Yes. We are pleased to work with brokers.

Absolutely, but remember that higher numbers of receivables purchased on a regular basis can result in more competitive rates. Terms can be especially flexible when there are large numbers of invoices issued to a larger, rather than smaller, pool of your customers.

Yes. For the first funding only, we can purchase your invoices from your outstanding accounts receivable.

Invoice verification is an essential, and accepted, part of funding. Because factors verify invoices with customers, they can tell clients if there is a customer service problem right away. A non-factoring client may not notice the problem until the invoice becomes past due. By that time, it may be too late to save the account. For the process to run smoothly, we suggest that you call your customers or send them a letter in advance to let them know that you are now working with a factor. If you need assistance in writing the notification letter, we will be happy to provide you with a sample letter.

By providing an immediate source of cash flow for your company. You can use this cash to provide working capital, meet payroll, pay taxes, replenish inventory, increase advertising, purchase equipment, improve your credit rating, and more.

The last thing we want is for you to lose a customer. We are not acting as a collection agency in this situation. We will never harass your customers for money. Maintaining your customers’ goodwill and confidence are of utmost importance to us!

When making a funding decision, we focus on the creditworthiness of your customers while banks will focus on your company’s financial history and cash flow. Plus, since accounts receivable funding is not a loan, there is no debt on your company’s balance sheet. Best of all, we will make a quick funding decision, while banks may take weeks—even months—to approve a loan.

Many transactions can be completed in less than 4 weeks. The more complex issues involved in the purchase of a company may require a 4 to 8 week period. M3CF will stay with the project until completion.

The initial funding takes between 1-3 business days after we receive your signed contract. If you wish, you can send your invoices to be funded with the signed contract. After the initial funding, your company can receive funds usually within 24 hours after verification.

Our services are tailored to your specific business so the fees will depend upon your specific needs. There are two types of fee. The first is the cost of the money you use, which is extremely competitive. The second is a service fee, which encompasses the collections service.
Fees will also vary depending on the advanced rate, invoice aging, and the total dollar amount you intend to factor on a monthly basis, there are also volume discounts. However, specific Factoring Fees cannot be quoted without information on your customers, invoices, amounts you wish to factor, and your type of business.
You should know that we offer one of the lowest factoring fees in the country.  And, the fact is, we want to be your factor, so we will be more than competitive. We will be happy to provide you with a proposal.

A proposal can be issued usually within 24 hours after receiving (1) the Application (2) Copy of your Accounts Receivable Aging (3) Copy of your Accounts Payable Aging (4) Your Customer list with at least your top 10 customers. With the proposal, you will be asked to provide additional standard items required to complete the application process.

As one of the lowest factoring fee factor in the industry, we should be able to beat most other offers.

Yes, we will still consider your application even if you have credit problems or a past bankruptcy.

We would work with you to help deliver a successful conclusion of the project. We can work to support your existing advisors or completely manage the project for you. Our specialist team at Dubai Business Advisors and our close associates has the expertise to provide you with any or all of the following, ensuring a successful transaction:

• Make a 'no names' approach on your behalf to the target business.
• Assistance with deal structure and negotiations with the vendor and their advisors leading to agreed heads of terms.
• Full or partial project management.
• Review and analysis of target company financials.
• Work with management to determine an appropriate project plan and timeline and assume responsibility for maintaining this plan and coordinating the deliverables from M3CF, other professional advisors and financiers.
• Review/preparation of a financial model allowing easy manipulation of various business inputs and clearly show the results in terms of cash flow and profitability.
• Support in the preparation of the Business Plan to ensure maximisation of opportunity.
• Insure that the business plan answers the anticipated questions which funding sources are likely to ask.
• Establish a ‘short’ list of potential funders after considering the criteria.
• Take responsibility of insuring that the investment proposition is communicated to prospective lenders.
• Support with the presentation of the business Plan to potential funders.
• Guide the management team through the take-up process, where necessary.
• Prepare business plans suited to the needs of the lenders.
• Support with legal and tax issues.
• Competitor analysis.
• Due diligence and valuations.

Buying the company you work for is a unique and exciting opportunity, but first an approach has to be made. If the owner is unaware of your interest then we can make an anonymous approach on your behalf to test the market. We have achieved a very high rate of success opening talks in this manner. A price for the business then needs to be negotiated and terms need to be agreed. Then it’s a matter of raising finance if required and executing the deal.

Here are some of the key issues that will need to be addressed when buying a company:

• Make an approach to the target business.  This can be done on a 'no names' basis on your behalf.
• Deal structure and negotiations with the vendor and their advisors leading to agreed heads of terms.
• Project management and an appropriate project plan and timeline and responsibility for maintaining this plan and coordinating the deliverables from professional advisors and financiers.
• Review and analysis of target company financials.
• Preparation of a financial model allowing easy manipulation of various business inputs and clearly show the results in terms of cash flow and profitability.
• Support in the preparation of the Business Plan to ensure maximisation of opportunity.
• Insure that the business plan answers the anticipated questions which funding sources are likely to ask.
• Establish a ‘short’ list of potential funders after considering the criteria.
• Take responsibility of insuring that the investment proposition is communicated to prospective lenders.
• Presentation of the business plan to potential funders.
• Support with legal and tax issues.
• Competitor analysis.
• Due diligence and valuations.

Accounts receivable funding is one of the oldest forms of financing. It has been around in one form or another for more than 4,000 years. Until the mid 1980s, most people thought accounts receivable fund¬ing was only used in the textile and garment industries. Today, accounts receivable funding is a widely used and viable financing solution for all types of businesses that extend credit terms to their customers.

If you are looking to raise finance due to a short term problem then we will be able to make a quick appraisal and secure the necessary funds. However, if the problem is likely to be more long term, we would suggest a more in-depth review of your operations. In these circumstances we construct various business models which show how the business would be affected by implementing any changes.

Finding funds for client projects is just one aspect of our business.  We also provide comprehensive professional corporate financial services dealing with all aspects of corporate finances.

Much of the work we carry out is on a success fee basis. In other words, you only pay on completion of a successful transaction. All fees are negotiated and agreed in advance, so there are no hidden costs or surprises. You will find our rates highly competitive and offer excellent value.

When you make an enquiry we will be able to give you some idea of the costs involved in executing your project, including professional fees.

Banks generally only provide funding and only recommend their own products. They are specialists in their particular field of funding, but they will likely not have the breadth of experience we have in our team.
We provide all the tools and services you need to complete a successful transaction. We do not sell product. We provide independent professional help and resources that ensure our clients get the very best out of every project or transaction.

Depending on your requirements, some of the following questions may be raised during the discussion. Please treat this as a guideline only, as we may not need all the information at this stage.

• An outline of the business proposition, the income streams and costs, funding requirements and timeline to deliver positive cashflow and profitability.
• Who will be the major contributors to the success of the proposition?
• How far has the proposition progressed to date?
• Who is the owner/driver of the project?
• Do you have a business plan?
• Do you have financial projections?
• Do you have timescales and what if any are key decision points?
• Do you know the levels of finance required? Is there any flexibility?
• If wishing to make an acquisition, who will be appointing an intermediary?
• Are there any assets that can be used for security?

This depends on whether your company entered into a non-recourse or recourse agreement with the factor. In a non-recourse agreement, the factor will absorb the credit-related loss. However, with a recourse agreement, your company will have to reimburse the factor—either by having the invoice deducted from the next advance or replace it with another collectable invoice.

In the unlikely event that we cannot achieve a successful transaction, success fees would not be payable.

Along with the application, be sure to include your company’s most recent accounts receivable and accounts payable aging reports, Articles of Incorporation or DBA filing, a master customer list and a sample invoice. For startup companies, please also submit a business plan and projected sales forecast, and an owner/officer history and profile.

Factoring is one of the quickest methods for companies to raise working capital. Used by almost every industry, factoring allows your company to raise the needed capital for acquisitions, expansion/growth, negotiate better
terms with your suppliers/vendors, restructuring, meet payroll or survival!
Factoring is converting your accounts receivables/invoices for cash, thus allowing your company to receive the needed cash quickly!
Why wait 30-60-90 days or longer for your customers to pay you? Factor your invoices, and get the money from your customers now - not weeks or months from now!
Factoring does not require additional collateral and does not create debt!  
Factoring is ideal for companies with cash flow problems, and companies that are going through temporary setbacks. 
However, did you know that factoring is also very beneficial and essential to healthy companies? Absolutely!  With factoring, you can focus on sales and growth, and we focus on your steady cash flow to continue!

The Advanced Rate is the percentage advanced on your invoices. For example, you sent a $10,000.00 invoice to be factored, the factor advances 90% of that invoice to you ($9,000.00) via wire transfer to your bank
account within 24 hours.
The additional 10% of the invoice is sent to you by the factor (less service fee) once the invoice is paid by your customer.
Typical advances are 90% to 92% of the invoice, but the actual Advanced Rate (as high as 95%) is based on the age of the invoice (10,30,60,90,120 Days), the financial strength and credit worthiness of your customers.

Debt funding - Secured against assets such as stock, property etc
Term loan - Used to cover cash flow, usually made against future income streams and where a company can demonstrate a net profit in excess of £400,000.
Equity funding - The lender takes a share of the company .
Commercial mortgage - Secured against property and usually for a 15 year term.

We will invite you to make a telephone appointment with one of our experts to discuss the matter informally but confidentially, giving us the chance to understand your proposition and its requirements.  We will then appraise the project and provide you with some immediate feedback. At the end of this initial conversation, if both sides agree, we will suggest a follow up meeting.

This might happen, especially with the first invoice. If this occurs, the check must be sent to us immediately. Your company should never deposit invoice checks that were already purchased by the factor. We also ask that you notify your customer to pay us directly in the future.

Debt Funding. Term Loan, Equity Funding and Commercial Mortgage are the four principle types of funding and loans can be structured, utilising any or all of them in order to provide the right repayment profile.

Ideally, we would like to fund all of your customers. First, we need their names, addresses, phone numbers and the amounts of credit desired. This will save you time when submitting invoices to us. Also, anytime you obtain new customers, fax the same information to us, and we will check them out for you.

If a bank has a lien on your company’s accounts receivable, you should let us know right away. We will ask the bank to subordinate that lien in our favor. Because this is a common occurrence, most banks will accommodate the request, but we must know this information in advance.