1.1 Full Factoring
Full factoring is when ANAPLANS factors all or most of a client’s accounts receivable. ANAPLANS may factor a client whose sales are at least $50,000 per month. If ANAPLANS is not factoring all of a client’s accounts receivable, Anaplans is factoring all of the invoices from a particular customer. Factoring only some of a customer’s invoices can be confusing to the customer; the customer will likely send checks to the client that should be sent to the ANAPLANS.
1.2 Purchase Order Financing
Purchase Order (PO) financing is short term funding used by a borrower to finance the fulfillment of sales orders or contracts with creditworthy end-customer. The terms of each purchase order financing agreement are transaction-specific, where funds for the purchase of materials and/or services needed to deliver goods to the end-customer.
ANAPLANS will target Finished-Goods (FG) transactions, where goods are purchased and resold to the end customer. Work-in-Progress (WIP) transactions will only be considered where materials are purchased for manufacture by a 3rd party, additional security is available and there is a proven track record. WIP transactions for start-ups and owner manufactured goods are not eligible for this program.
ANAPLANS may also complete PO transactions under the fulfillment program where ANAPLANS’s subsidiary company, takes ownership of the transaction.
1.3 Spot Transactions
Spot factoring is the purchase of a single receivable or a group of receivables at a discount for cash. It is higher risk than full factoring because, if there is a default, there are no other receivables from which to recoup the loss. However, spot factoring often leads to full factoring and there are a number of ways for a ANAPLANS to protect ourselves.
1.4 Fulfillment
ANAPLANS can provide Fulfillment services issuing the PO and invoice under ANAPLANS’s name and provide receivable insurance under the corporate policy. This is helpful for companies who lack the experience to complete the transaction.
1.5 Referrals
ANAPLANS will receive a referral fee in exchange for the referral. In today’s market larger volume relationships are priced lower than the desirable yield targeted for ANAPLANS. ANAPLANS may have plenty of funds in which to fund a larger client, but competitive pricing may be less than ANAPLANS wants to earn on the client.