Lifeline to small businesses

As an entrepreneur, what do you do when you need to improve your cash flow?

What do you do when you have tapped out bank loans, credit cards and other lines of credit?  What do you do if you cannot qualify for a bank loan? What do you do when you need cash to meet your payroll because your accounts receivable are always 30 to 60 days or more behind?

American Funding Solutions, a Blue Springs company, may be the answer to these questions.

“AFS can be an excellent alternative to bank financing,” says Kim Deveney, vice president. “We specialize in accounts receivable factoring and purchase order funding, which are funding options that accelerate cash flow to small businesses.” She has owned and managed the business for five years.



Accounts receivable

Deveney explained that accounts receivable funding is a relatively unknown financial support tool that can provide immediate and steady cash flow. Basically her company is interested in purchasing creditworthy business invoices to improve cash flow; not bad debts.

The program allows a business owner to sell existing receivables at a slight discount and receive the majority of the funds immediately and not wait 30, 60 or 90 days for customer payment. The discount fee is about 3 to 5 percent of the invoices. The fee is similar to what a business owner may offer his customer for quick payment.

Deveney explained that AFS can often provide funding options when bank loans and SBA programs are not available, because it has different approval criteria than banks. In addition, receivable funding is different than a bank line of credit. There is no cap on the amount of funds you can receive, which you may find with bank loans. As your receivables grow, so does your available funds. Approval is based on the creditworthiness of your customers; not your personal credit.

“We are an excellent alternative to traditional bank financing and offer several flexible and innovative financing options specifically designed for small businesses. We specialize in receivable factoring and purchase order funding, but we also offer unsecured lines of credit, credit card factoring, equipment financing and creative lease programs.” she said.

“For example, if you are a small janitorial business or in the construction industry, and wait 30 to 60 days for payment for your job, you may have a cash flow problem paying your creditors or meeting payroll,” she said. “This is where AFS can help.”

Deveney said her company’s services can also help start-up companies or credit challenged business especially when traditional banks can’t. AFS works with many local banks to help their customers.  She can offer factoring, as an option to a bank’s small business clients when a traditional loan is not possible. 



MCC-Blue River

“It’s important to be part of the community, and that is why I teach courses at Metropolitan Community Center – Blue River,” she said. “This semester I will teach a certified bookkeeper course designed to prepare the student to take the American Institute of Professional Bookkeepers national certification test.” To enroll for this course, call (816) 220-6518 or visit www.mcckc.edu/brcommed.

Deveney is a member of the Ambassadors Committee at the Independence Chamber of Commerce, treasurer for the National Association of Women Business Owners and for Client Referral Network. She is the recipient of the Million Dollar Award from American Cashflow Association. She holds a bachelor’s degree in accounting from the University of Missouri and a master’s degree from Webster University. You can reach Kim Deveney at kim@funding4you.com, (816) 224-6201 or visit www.funding4you.com.