Q: How does CAFI funding program work?

A: CAFI is an asset-based lender that specializes in funding progress invoices on work that has been completed and approved by their respective General Contractor or Owner. CAFI's funding program gives businesses the power to ensure growth without diluting equity or incurring debt.

Q: Is CAFI's program too expensive?

A: If your growth is constrained by your cash flow and you have an adequate profit margin to cover the cost of funding, the cost of lost opportunities most likely exceeds the cost of funding.

Q: Will CAFI’s funding program benefit my company?

A: CAFI’s program can be beneficial to your company when managed properly, by increasing your purchase power to purchase materials for the project we are funding. This allows you to take advantage of early pay discounts from suppliers ranging from 1% to 2%.

Q: Do I have to fund all of my invoices?

A: No, CAFI realizes that it may not be necessary to fund all of your invoices. You decide which invoices you want to fund.

Q: Are my accounts receivable pledged as collateral?

A: Yes, we require a first lien position on all accounts receivable while you fund with us. We work in conjunction with a bank if they have a first lien on all assets. Most banks will agree to subordinate a portion or specific accounts receivable to us to allow us to fund certain receivables. In most cases, the combination of bank financing and CAFI’s program is beneficial to your company!

Q: How do I know if my company will qualify for funding with CAFI?

A: If your company sells goods or performs a service to other businesses with a good credit rating and has not pledged its accounts receivable to a financial institution as collateral, your company will most likely qualify.

Q: Is it necessary to commit to a long term contract?

A: No, you choose what you want to fund. No early termination penalties.

Q: Does CAFI require additional collateral?

A: No, a first lien position on all accounts receivable is all we require.

Q: Do I have to sign a personal guaranty?

A: Yes, those individuals who are responsible for the ownership of the company being funded are required to sign a personal guaranty. This document protects us against fraudulent business practices. This document is required by most funding and commercial finance companies including banks.

Q: How long does it take to process my application?

A: We generally approve applications within 48 hours.

Q: How long does it take to fund an invoice(s)?

A: We follow a process that takes as long as it takes to get a response from the account debtor (general contractor or owner) to verify the commitment to pay the invoice that is submitted to us for funding. In most cases, the time to verify these invoices is the driving factor behind funding an invoice in a timely manner.

Q: Do I have to be an established business with a minimum year requirement to be approved for funding?

A: No, CAFI has no minimum requirement. Also, we fund start-up companies.