Business Credit Assurance Overview
Business Credit Assurance (BCA) is a comprehensive contract financing program that combines Government supply contracting with powerful business credit building know-how to create a powerful commercial credit solution. The program allows new or established businesses to drive new sales growth by selling finished goods to large creditworthy corporations or government agencies. BCA allows small businesses to establish or extend NET30 day credit terms with their suppliers to finance government issued Purchase Orders or term supply contracts.
BCA is NOT A LOAN PRODUCT, but provides business credit by purchasing the company’s current and future government or corporate contract accounts receivable. Capital Source Financial can arrange to get a “pre-approval” for credit assurance coverage that will be effective for a maximum of 90-days or until a verifiable purchase order is received to activate the commercial credit facility. By offering a guarantee of payment against default, new and growing companies can more easily establish or extend commercial credit lines with qualified suppliers.
The credit facilities allow small business owners to:
- Establish new credit terms with suppliers
- Extend existing credit terms with suppliers
- Grow sales faster by offering credit terms
- Use invoice cash advances to pay suppliers on time
BCA can allow eligible start-up supply companies to get “prequalified” for a credit facility up to $100,000 or more and established companies with 3 or more years in operations may qualify for up to $4,000,000 or more in total financing which may be a combination of commercial credit facilities, receivable financing, loans, or business equipment lease financing. BCA will only arrange to issue guarantees to suppliers for Purchase Orders or term supply contracts that are for sales to creditworthy corporations or Government agencies. (Service contracts are not eligible for BCA, but can be financed separately)
Key Features for Start-up State or Federal Registered Vendors
• NO Strong personal credit required.
• NO Business plans required.
• NO Minimum time in operation required
• NO Fixed monthly loan payments.
• NO Government agency loan eligibility restrictions.
• NO Difficult credit line extensions as company sales grow and
• NO Upfront fees to apply!
Key Benefits for Start-up State or Government Registered Vendors
• Easier 30-Day Credit Approval with Suppliers
• Establish or Increase Credit Limits with Suppliers
• Protection Against Payment Default to Suppliers
Business Supplier Prequalification
BCA will arrange to have credit guarantees issued on behalf of your company to your suppliers.
1. Suppliers must be willing to extend credit terms to your firm that is secured by our credit facility.
2. Suppliers must be able to produce or have sufficient inventory to drop-ship the specified product on time and meet the buyer’s terms such as delivering the brand or type of product
specified in the purchase order.
BCA is not a loan product, however a credit assurance subscription is required and credit assurance fees are based on the desired Purchase Order limit sufficient to provide credit assurance sufficient to cover 100% of the cost to finance qualifying Purchase Orders. In all cases credit assurance coverage will require centralized invoice payment processing through participating lenders or funders that will process supplier invoices, credit verifications, accounting, customer invoice payments, and disbursement of funds to participating suppliers, and release of funds in reserve less any applicable fees.