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WyomingThe PlayBook®
The PlayBook® by First Down Funding®
The PlayBook by First Down Funding
Overview, Calculations and Case Study
5 Reasons to Choose First Down Funding® for your Business Funding Needs
Securing small business funding for your American business can feel like an uphill battle. With the big banks, you may jump through hoop after hoop with the hope of being approved, only to be rejected after weeks of waiting.
Enough of that. It’s time you took back control of your business’s financial future. Thankfully, you’ve got First Down Funding on your side – we’re the alternative business funder that makes it easier than ever to get the funding you need for your business. Here are five reasons to choose us over the other guys.
The Bottom Line
Whether you’re looking for small business funding to take advantage of a short-term opportunity, cover cash flow needs, expand your business, or something else entirely, First Down Funding has a small business funding solution that can meet your needs. Apply today or get in touch with us to have a conversation about how we can help get you the funds you need to focus on doing what you do best: growing your business.
The PlayBook® by First Down Funding® – Case Studies: The Construction Industry
If you work in the construction industry, you know that the general contracting business is very different from traditional brick-and-mortar businesses. Most jobs pay out upon completion of the work, whether in terms of milestones during the process or in full at the very end of the job.
In the meantime, however, the contractor is usually forced to pay for expenses such as materials, insurance, equipment and payroll costs out of their own pocket. Cash flow is therefore king; in the world of construction, it’s often not a question of whether a business needs funding, but where and when they’re able to get it.
Many traditional funding institutions will not fund to businesses operating in the construction industry, citing any number of reasons:
- Inconsistent revenues resulting from a cyclical business
- Lack of a physical brick-and-mortar location
- A lack of collateral to put up against a funding
- Contractors are often bonded, which means the banks don’t have first claim to assets should the business fail
- Susceptible to market and economic downturns
- And more
The extremely conservative funding practices of most major banks leaves a gap in the market, and that gap is filled by alternative funding institutions. Alternative funders aren’t bound by the same rules and restrictions as big banks, so they’re able to offer highly customized funding solutions that prioritize getting money into your account so you can keep your business going.
Here are two examples of how our funding solutions can help your construction business (*names and details have been changed to protect the identity of the clients; Privacy Policy).
Case Study – Tampa Remodeling & Lifestyle
Tampa Remodeling & Lifestyle is a mid-sized construction company that’s been in business for over a decade. Recently, an exciting business opportunity presented itself to the company. A major prospective client had just put out a new project for RFP, and Edgardo, the owner of Tampa Remodeling & Lifestyle, wanted to bid on it.
The challenge with this was that the nature of the job would require John to pay for substantial material and equipment costs upfront, with payment only coming after certain key milestones were hit. Without external funding, there was just no way the company could take on this job.
That’s where First Down Funding comes in. Edgardo turned to First Down Funding, whose friendly, knowledgeable staff took the time to understand his unique situation and needs. Within 48 hours, Edgardo was approved for funding within First Down of $50,000, which he would repay with total costs of working capital & receivables purchased over a period of approximately ten months. The funding provided by First Down Funding gave Edgardo the cash flow his business needed to cover upfront costs associated with the project. He was able to make ends meet until his business hit the first payout milestone of the project, and it was all thanks to First Down Funding!
Home Remodeling – Funded by Paul Pitcher of First Down Funding
Worked with Paul Pitcher of First Down Funding and it was an easy process. Lots of insight and smooth process. Thanks
Case Study – LBS Concrete Services
LBS Concrete Services is a small construction company with big ambitions. Its owner, Loni aspired to take on larger jobs in order to expand the company’s client base and grow the business, which had been in operation for nearly five years. The trouble was that the company needed new equipment in order to be able to handle most of the larger projects that were available in their area of operation. After careful consideration, the company decided that financing was the way to go.
Loni approached his primary bank for a funding but was told that, due to the unpredictable nature of his business and inconsistent cash flow, an approval was unlikely. Furthermore, even if the bank could approve him, the process could take anywhere from 1-3 months to complete, which was time he didn’t have. The busy season for construction was about to hit with full force, and he wanted to be ready. So after some research, he contacted Sharpshooter Funding to find out about his other options.
Working with First Down Funding, Loni & his partners were able to secure small business funding within 24 hours to cover the costs of his equipment financing. He was able to pay one fixed price each week for funding that covered both the hard cost of the equipment financing and the soft costs associated with training and shipping the equipment.
With its newly-financed equipment, LBS Concrete Services was ready to start winning jobs that were previously out of the small company’s reach.
Great Treatment
Great Treatment, speed of delivery was outstanding. Everything was direct and to the point, with no hassles. Would recommend to everyone. No Doubt!
funding approval example
$132,383.00
funded amount
$130,453.05
TOTAL RECEIVABLES PURCHASED
$158,855.19
SCHEDULE / TURNAROUND (Term)
32 Months
Metric
Total Cost of Capital
$28,402.14
Metric Calculation
Cost of capital
$26,472.19
Origination fee
$1,929.95
Other fees
0.00
Total cost of capital
$28,402.14
Metric Explanation
This is the total amount of interest and other fees for the Funding.
The amount does not include fees and other charges you can avoid, such as late payment fees and returned payment fees.
Metric
Average Monthly Payment
$4,964.22
Metric Calculation
Repayment Amount:
$158,855.19
Terms (in months):
+32 Months
Average Monthly Payment
$4,964.22
Specific Monthly Schedule:
N/A
Metric Explanation
This is the total amount of interest and other fees for the Funding.
The amount does not include fees and other charges you can avoid, such as late payment fees and returned payment fees.
Metric
Cents on the Dollar (excludes fees)
0.20¢
Metric Calculation
Cost of Capital:
$26,472.19
Funding Amount:
$132,383.00
Cents on the Dollar
0.20¢
Metric Explanation
This is the total amount of interest and other fees for the Funding.
The amount does not include fees and other charges you can avoid, such as late payment fees and returned payment fees.
Repayment
Does prepayment of this Funding result in any new fees or charges?
No
Does prepayment of this Funding decrease the total interest or Funding Fees owed?
Yes
funding approval example
$36,000.00
funded amount
$35,180.05
TOTAL RECEIVABLES PURCHASED
$40,150.61
SCHEDULE / TURNAROUND (Term)
13 Months
Metric
Total Cost of Capital
$4,970.56
Metric Calculation
Cost of capital
$4,150.61
Origination fee
$819.95
Other fees
0.00
Total cost of capital
$4,970.56
Metric Explanation
This is the total amount of interest and other fees for the Funding.
The amount does not include fees and other charges you can avoid, such as late payment fees and returned payment fees.
Metric
Average Monthly Payment
$3,088.51
Metric Calculation
Repayment Amount:
$40,150.61
Terms (in months):
+13 Months
Average Monthly Payment
$3,088.51
Specific Monthly Schedule:
N/A
Metric Explanation
This is the total amount of interest and other fees for the Funding.
The amount does not include fees and other charges you can avoid, such as late payment fees and returned payment fees.
Metric
Cents on the Dollar (excludes fees)
0.12¢
Metric Calculation
Cost of Capital:
$4,150.61
Funding Amount:
$36,000.00
Cents on the Dollar
0.12¢
Metric Explanation
This is the total amount of interest and other fees for the Funding.
The amount does not include fees and other charges you can avoid, such as late payment fees and returned payment fees.
Repayment
Does prepayment of this Funding result in any new fees or charges?
No
Does prepayment of this Funding decrease the total interest or Funding Fees owed?
Yes
funding approval example
$36,000.00
funded amount
$34,634.05
TOTAL RECEIVABLES PURCHASED
$39,232.08
SCHEDULE / TURNAROUND (Term)
12 Months
Metric
Total Cost of Capital
$4,598.03
Metric Calculation
Cost of capital
$3,232.08
Origination fee
$1,365.95
Other fees
0.00
Total cost of capital
$4,598.03
Metric Explanation
This is the total amount of interest and other fees for the Funding.
The amount does not include fees and other charges you can avoid, such as late payment fees and returned payment fees.
Metric
Average Monthly Payment
$3,269.34
Metric Calculation
Repayment Amount:
$39,232.08
Terms (in months):
+12 Months
Average Monthly Payment
$3,269.34
Specific Monthly Schedule:
N/A
Metric Explanation
This is the total amount of interest and other fees for the Funding.
The amount does not include fees and other charges you can avoid, such as late payment fees and returned payment fees.
Metric
Cents on the Dollar (excludes fees)
0.09¢
Metric Calculation
Cost of Capital:
$3,232.08
Funding Amount:
$36,000.00
Cents on the Dollar
0.09¢
Metric Explanation
This is the total amount of interest and other fees for the Funding.
The amount does not include fees and other charges you can avoid, such as late payment fees and returned payment fees.
Repayment
Does prepayment of this Funding result in any new fees or charges?
No
Does prepayment of this Funding decrease the total interest or Funding Fees owed?
Yes
funding approval example
$59,000.00
funded amount
$57,334.05
TOTAL RECEIVABLES PURCHASED
$70,698.51
SCHEDULE / TURNAROUND (Term)
24 Months
Metric
Total Cost of Capital
$13,364.46
Metric Calculation
Cost of capital
$11,698.51
Origination fee
$1,665.95
Other fees
0.00
Total cost of capital
$13,364.46
Metric Explanation
This is the total amount of interest and other fees for the Funding.
The amount does not include fees and other charges you can avoid, such as late payment fees and returned payment fees.
Metric
Average Monthly Payment
$2,945.77
Metric Calculation
Repayment Amount:
$70,698.51
Terms (in months):
+24 Months
Average Monthly Payment
$2,945.77
Specific Monthly Schedule:
N/A
Metric Explanation
This is the total amount of interest and other fees for the Funding.
The amount does not include fees and other charges you can avoid, such as late payment fees and returned payment fees.
Metric
Cents on the Dollar (excludes fees)
0.20¢
Metric Calculation
Cost of Capital:
$11,698.51
Funding Amount:
$59,000.00
Cents on the Dollar
0.20¢
Metric Explanation
This is the total amount of interest and other fees for the Funding.
The amount does not include fees and other charges you can avoid, such as late payment fees and returned payment fees.
Repayment
Does prepayment of this Funding result in any new fees or charges?
No
Does prepayment of this Funding decrease the total interest or Funding Fees owed?
Yes
funding approval example
$6,600.00
funded amount
$6,310.05
TOTAL RECEIVABLES PURCHASED
$7,341.17
SCHEDULE / TURNAROUND (Term)
10 Months
Metric
Total Cost of Capital
$1,031.12
Metric Calculation
Cost of capital
$741.17
Origination fee
$289.95
Other fees
0.00
Total cost of capital
$1,031.12
Metric Explanation
This is the total amount of interest and other fees for the Funding.
The amount does not include fees and other charges you can avoid, such as late payment fees and returned payment fees.
Metric
Average Monthly Payment
$734.12
Metric Calculation
Repayment Amount:
$7,341.17
Terms (in months):
+10 Months
Average Monthly Payment
$734.12
Specific Monthly Schedule:
N/A
Metric Explanation
This is the total amount of interest and other fees for the Funding.
The amount does not include fees and other charges you can avoid, such as late payment fees and returned payment fees.
Metric
Cents on the Dollar (excludes fees)
0.11¢
Metric Calculation
Cost of Capital:
$741.17
Funding Amount:
$6,600.00
Cents on the Dollar
0.11¢
Metric Explanation
This is the total amount of interest and other fees for the Funding.
The amount does not include fees and other charges you can avoid, such as late payment fees and returned payment fees.
Repayment
Does prepayment of this Funding result in any new fees or charges?
No
Does prepayment of this Funding decrease the total interest or Funding Fees owed?
Yes
funding approval example
$96,900.00
funded amount
$94,840.05
TOTAL RECEIVABLES PURCHASED
$113,072.61
SCHEDULE / TURNAROUND (Term)
15 Months
Metric
Total Cost of Capital
$18,232.56
Metric Calculation
Cost of capital
$16,172.61
Origination fee
$2,059.95
Other fees
0.00
Total cost of capital
$18,232.56
Metric Explanation
This is the total amount of interest and other fees for the Funding.
The amount does not include fees and other charges you can avoid, such as late payment fees and returned payment fees.
Metric
Average Monthly Payment
$7,538.17
Metric Calculation
Repayment Amount:
$113,072.61
Terms (in months):
+15 Months
Average Monthly Payment
$7,538.17
Specific Monthly Schedule:
N/A
Metric Explanation
This is the total amount of interest and other fees for the Funding.
The amount does not include fees and other charges you can avoid, such as late payment fees and returned payment fees.
Metric
Cents on the Dollar (excludes fees)
0.17¢
Metric Calculation
Cost of Capital:
$16,172.61
Funding Amount:
$96,900.00
Cents on the Dollar
0.17¢
Metric Explanation
This is the total amount of interest and other fees for the Funding.
The amount does not include fees and other charges you can avoid, such as late payment fees and returned payment fees.
Repayment
Does prepayment of this Funding result in any new fees or charges?
No
Does prepayment of this Funding decrease the total interest or Funding Fees owed?
Yes
