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News
| FFA work w Vendors |
07/13/2009 |
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First Federal Advance, LLC has long furnished merchants with financial help, but its newest program, Vendor Advantage, is designed to buoy merchant vendors at the same time.
First Federal indicated the program provides capital in two ways to merchant vendors. One, it helps them make sales to merchants by getting those merchants a money injection; two, it positions them to receive a commission on the repayment of that same advance.
For its part, First Federal has been able to expand its clientele by attracting merchants through business partners with whom those merchants have a history.
A lot of companies that provided a lot of traditional financing to vendors, or to merchants so they could buy things from vendors - leasing companies or banks or things like that - in the recent economic situation, they're getting a little tighter.
It's getting a little harder to get that money, and it's not only squeezing the merchants - it's squeezing the vendors.
What [a vendor] would do is go to their existing base and say, “You can either pay me through cash, credit card, or I can help you to get money to pay for this ordered through First Federal,” How deeply vendors get involved is up to them - The involvement can range from simply referring the name of a merchant to actually assuming the role of an Agent and "doing the paperwork to sell First Federal’s product."
Depending on what the vendor needs, we will structure the program and customize it.
The "product" is a merchant's "future receivables," which is what First Federal purchases when it provides a money injection; the company obtains that "product" by taking a percentage (the size of which varies with each arrangement) out of every subsequent transactions the merchant conducts.
And because First Federal assumes the entire risk for such transactions - because they advance the money - the merchant vendor stands only to gain.
If that vendor made a sale or had a loan recouped through First Federal’s purchase of an account receivable, it would still benefit from the arrangement -
It's more like an affiliate marketing program, because merchants have an affiliation with [the vendor]. Basically they're leveraging that relationship and expanding their ability to make revenue by selling this product to people with whom they have a relationship.
FEATURES OF VENDOR ADVANTAGE: Call 888 342-4FFA
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