Factoring

Laxman Leafin Limited markets a "hybrid" or modified form of factoring that in many respects is significantly different from traditional factoring. We believe that factoring should be viewed as bridge capital and not as a permanent source of capital. It should ultimately facilitate the transition to a commercial bank, if desired. The Laxman Leafin Limited factoring program provides an alternative source of working capital that combines a strong emphasis on client relationships normally associated with commercial banks along with the flexibility in underwriting and funding afforded under our modified program.

Distinctions from traditional factoring

• Emphasis on client relationship and service
• Lower cost
• Limited debtor notification and flexible verification programs
• No hidden fees
• Client managed billings and collections
• Faster funding and return of cash reserves
• Client access to "out-sourced" credit department at a reasonable additional cost
• Depth of experience in the capital markets

Distinctions from typical bank revolvers

• No covenants
• Minimal audit fees, legal fees or other fees
• Limited documentation
• Client leverage reduction due to "off-balance sheet" financing
• Flexibility for undercapitalized businesses, as well as, companies with volatile earnings, customer concentrations, or limited operating histories

Who should consider factoring

• Rapidly growing companies or those with high growth potential
• Transitional companies with past losses
• Turnaround companies
• Start-up companies with limited history
• Companies denied adequate bank financing
• Companies contemplating raising equity to support working capital
• Companies currently factoring

Owner-occupied real estate and manufacturing equipment finance arrangements structured under a recapitalization situation and often in conjunction with a new working capital facility.

General Transaction Guidelines

• Strong collateral position considered to compensate for uneven historical cash flows
• Improving business and financial trends
• Up to a five year amortization on commercial real estate and two years on equipment
• Ability to refinance existing equity out of assets
• Fixed or variable interest rates