Alternative Financing Tools

In today’s funding environment, specialty finance firms like ExpoCredit are stepping in to fill the gaps left by banks.

According to Tyler Grady, Executive Vice President/Chief Marketing Officer of ExpoCredit, when your business needs cash, ExpoCredit offers a full portfolio of products – from traditional factoring and asset-based funding to more exotic offerings such as inventory finance with a repurchase option, to supply chain finance.

To gain a better understanding, Grady explains the top alternative funding products and how they work.


An excellent tool if you are experiencing rapid growth or slow payments from your customers, factoring converts your accounts receivable into immediate cash. “There’s no waiting, and no restrictions on the use of funds,” says Grady. “We put the cash in your hand quickly so you can pay employees or purchase supplies to bring more products and services to the marketplace, thereby increasing sales. This is an excellent product for companies that have been turned down by their bank.”

ExpoCredit purchases accounts receivables for 70%-85% of the invoice amount. “Factoring allows you to capture the cash discounts offered by your vendors and can also help your company grow while reducing risks,” says Grady.

The majority of companies working with ExpoCredit are in manufacturing, distribution or service industries, but anyone selling a product or service on terms to another business and expecting payment within 30 or 45 to 60 days, and beyond, is a good candidate.

Purchase Order (P.O.) Financing

With P.O. financing, once the purchase order is generated, ExpoCredit will pay your supplier. The product can then be manufactured, and you take possession of the goods, with 30, 60 or 90 days to repay ExpoCredit through the sale of that product. P.O. financing is normally used in conjunction with factoring.

Grady points out that unlike many factoring firms, ExpoCredit offers P.O. financing both domestically and internationally. “With decades of doing business abroad, ExpoCredit understands international business,” he says.

Inventory Purchase

With this unique ExpoCredit option, inventory waiting to be sold or sitting in your warehouse can be turned into working capital right away. ExpoCredit purchases your inventory at a discount and moves it into ExpoCredit’s bonded warehouse and safely stores it until you are ready to repurchase the inventory. “Repurchase can be over a period of 30, 45, or 60 days,” says Grady. “You can take back the entire inventory at once, or in partial lots.”

Because ExpoCredit owns the inventory (or collateral) for the duration, this is a type of unsecured funding. Companies with readily salable inventory, or inventory that is not too specialized, such as smart phones or other electronics, are the best candidates.

Supply Chain Finance

When a client is cash-strapped, ExpoCredit directly purchases materials for that client’s vendors, paying the entirety of the invoice value. ExpoCredit then moves the product to the designated client site. Clients are invoiced for 110% of the invoice price of the delivered goods, and are provided with terms of up to 60 days to sell the goods and pay back ExpoCredit.

Candidates for Supply Chain Finance are companies with US$20+ million in sales, a good income stream and solid net worth. “This is a unique product,” admits Grady. “ExpoCredit is one of the few specialty financing firms offering this option.”

With ExpoCredit’s funding options, business owners can satisfy expenses, meet seasonal needs, diversify risk, expand geographical reach and increase sales.

“For the client, alternative methods of financing deliver added value that banks don’t,” says Grady. “We can help generate higher sales volumes and provide incremental income.”

ExpoCredit, which is based in Miami, is expanding throughout the U.S. with new offices already established in Atlanta, Los Angeles and Portland, and two more planned for 2014. The company is targeting a total of 21 offices nationwide and internationally.

“With 15 successful years in business, ExpoCredit is well-known on the East Coast and in Central and South America,” says Grady. “Now, we want to increase our influence and bring success to small and mid-sized businesses throughout the U.S.”