According to the FTC’s complaint, the defendants, doing business as Ecash and GeteCash, offered loans to be repaid from borrowers’ upcoming paychecks. Online loan applicants checked a box indicating their agreement with loan terms, including an inconspicuous “wage assignment” clause that said that their wages would be garnished to cover delinquent loan payments. Then, using the name LoanPointe, the defendants attempted to collect on the offered payday loans.

Federal law allows federal agencies to require employers to garnish employees’ wages without a court order when the employees owe the government money. According to the complaint, in letters to employers that sought garnishment of their employees’ wages, GeteCash and LoanPointe tried to pass themselves off as having the same collection rights as the government. The FTC’s complaint also alleges that GeteCash and LoanPointe falsely stated that consumers knew their pay would be garnished and had an opportunity to dispute the debt. In addition, GeteCash and LoanPointe allegedly violated the law when they told employers and co-workers about consumers’ debts without their consent. (See http://www.ftc.gov/opa/2010/04/getecash.shtm )

Under the settlement order, Mark S. Lofgren is banned from collecting debts through wage assignment. He is also permanently prohibited from misrepresenting facts in order to collect a debt; contacting a consumer’s employer in trying to collect a debt, unless he is seeking location information or has a valid court order of garnishment; and disclosing a debt to any third party. In addition, Lofgren is barred from violating the Credit Practices Rule and the Fair Debt Collection Practices Act, selling or otherwise benefitting from customers’ personal or financial information, and failing to properly dispose of customer information. The order imposes a $38,133 judgment that is suspended based on his inability pay. The full judgment will become due immediately if he is found to have misrepresented his financial condition.

The FTC also dismissed Benjamin J. Lonsdale and James C. Endicott as defendants in the case. Litigation continues against Joe S. Strom, LoanPointe, LLC, and Eastbrook, LLC, also doing business as Ecash and GeteCash.

The Commission votes to dismiss Lonsdale and Endicott from the complaint were 5-0. The Commission vote to file the stipulated final order with Lofgren was 4-1, with Commissioner J. Thomas Rosch voting no. The documents were filed in the U.S. District Court for the District of Utah, Central Division.

Stipulated court orders are for settlement purposes only and do not necessarily constitute an admission by the defendants of a law violation. Stipulated orders have the full force of law when signed by the judge.

© 1994-2010 INFOZINE ® A REGISTERED TRADEMARK.

CSI’s exclusive bank loan program brings “peace of mind” to patients by providing them the ability to address out-of-pocket medical expenses – including high deductibles or copayments – through affordable monthly payments, thereby avoiding the collections process and maintaining their credit. By partnering with CSI, HCMH patients electing to participate in CSI’s loan program may pay as little as $20 per month (depending on balance amount). Patients can pay their monthly bill via mail, phone, internet or automatic debit.

“The new loan program assures that affordable loans are available to individuals who have received treatment from our hospital, but are unable to pay their balance in full,” explains Vance Jackson, HCMH CEO/Administrator. “We are always looking for new ways to ensure both the physical and financial well-being of our patients.”

“We are excited to partner with Hancock County Memorial Hospital and extend its world-class patient experience to now include their financial well-being,” said Mitch Patridge, CSI’s Chief Executive Officer. “We understand patients are contending with higher deductibles and higher co-pays. CSI’s program provides patients who are unable to pay their bill in full, an affordable way to meet their financial obligation.”

Patridge noted that CSI’s low interest loan programs are supported by the company’s best-in-class customer service center that has been exclusively designed to meet the needs of their healthcare clients and the patients they serve. CSI’s San Diego-based customer service center has generated a 99% satisfaction rating, underscoring the company’s commitment to treat each patient with dignity and respect.

CSI Financial Services is the premier provider of patient loan programs. Since 1992, CSI has funded more than $500 million in patient loans enabling hundreds of thousands of patients to easily and affordably repay their healthcare obligations. CSI maintains its corporate office in San Diego, Calif., with regional sales offices throughout the United States. For more information about CSI, visit www.csifinancial.com.

The Albany Water Board, a New York State Public Authority, operates and maintains the City of Albany water, sanitary, stormwater and combined sewer collection systems. Minority Business Enterprises and Women’s Business Enterprises are encouraged to submit proposals.

***ORIGINAL DEADLINE TO SUBMIT PROPOSALS HAS BEEN EXTENDED FROM SEPTEMBER 7, 2010 TO OCTOBER 1, 2010 BY 2:00 P.M. Further, an addendum to the RFP will be posted on the City of Albany website on or before September 10, 2010. The addendum will answer all vendor questions submitted to date.

To download a copy of the RFP, please click here: http://www.albanyny.org/Files/RFPCollectionAgencyServices2010.pdf

The Agreement with the FRB (the “FRB Agreement”) and the Order issued by the DFI (the “DFI Order”) require us to adopt and implement formal plans, as well as to continue to implement other measures that we previously adopted, to address the adverse consequences that the economic recession has had on the quality of our loan portfolio and our operating results, and to increase our capital to strengthen our ability to weather any further adverse conditions that could arise if the hoped-for improvement in the economy does not materialize.

The FRB Agreement and DFI Order contain substantially similar provisions. Among other things, they require the Boards of Directors of the Company and the Bank to prepare and submit written plans to the FRB and the DFI that address: (i) strengthening board oversight of the management and the operations of the Bank; (ii) improving the Bank’s position with respect to its problem assets; (iii) maintaining adequate reserves for loan and lease losses in accordance with applicable supervisory guidelines; and (iv) strengthening the capital positions of the Bank and the Company. The Bank also may not pay dividends to the Company without the prior approval of the FRB and the DFI and, without the approval of the FRB, the Company may not declare or pay cash dividends, repurchase any of its shares, make payments on its trust preferred securities or incur or guarantee any debt.

Under the Agreement, the Company also must submit, to the FRB, a capital plan for both the Company and the Bank that will meet with the FRB’s approval and then implement that plan. Under the Order, the Bank is required to achieve a ratio of its adjusted tangible shareholders’ equity to its tangible assets of 9.0% by January 31, 2011 by raising additional capital, generating earnings or reducing the Bank’s tangible assets, or a combination thereof.

“The Company and the Bank have already made progress with respect to several of these requirements and both the Board of Directors and management are committed to achieving all of the requirements on a timely basis,” stated Raymond E. Dellerba, the President and Chief Executive Officer of the Company and the Bank.

Moreover, the Bank’s financial condition remains strong. The Bank continues to have substantial liquidity, which totaled $313 million, or 27% of total assets, at June 30, 2010, including $217 million of cash and cash equivalents and $74 million of securities available for sale.

In addition, the ratio of the Bank’s total capital-to-risk weighted assets, which is the principal federal regulatory measure of the financial strength of banking institutions, was 10.6% at June 30, 2010. As a result, the Bank continued to be classified, under federal bank regulatory guidelines and federally established prompt corrective action regulations, as a “well-capitalized” banking institution, which is the highest of the capital standards established by federal banking regulatory authorities.

Nonetheless, we still recognize the importance of and have begun developing plans to increase our equity capital, not only to satisfy the DFI requirement in its Order, but also to strengthen the Bank’s ability to weather potentially difficult economic conditions that could arise in the future.

About Pacific Mercantile Bancorp

Pacific Mercantile Bancorp is the parent holding company of Pacific Mercantile Bank, which opened for business March 1, 1999. The Bank, which is an FDIC insured, California state-chartered bank and a member of the Federal Reserve System, provides a wide range of commercial banking services to businesses, business professionals and individual clients through its combination of traditional banking financial centers and comprehensive, sophisticated electronic banking services.

The Bank operates a total of seven financial centers in Southern California, four of which are located in Orange County, one of which is located in Los Angeles County, one of which is located in San Diego County and the other of which is located in the Inland Empire in San Bernardino County. The four Orange County financial centers are located, respectively, in the cities of Newport Beach, Costa Mesa (which is visible from the 405 and 73 Freeways), La Habra and San Juan Capistrano (which is our South County financial center that is visible from the Interstate 5 Freeway). Our financial center in Los Angeles County is located in the city of Beverly Hills. Our San Diego financial center is located in La Jolla and our Inland Empire financial center is located in the city of Ontario (visible from the Interstate 10 Freeway). In addition to the Bank’s physical locations, it offers comprehensive banking services over its Internet Bank, which is accessible 24/7 worldwide at www.pmbank.com.

The Pacific Mercantile Bancorp logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=7241

Forward-Looking Statements

This news release contains statements regarding our expectations, beliefs, intentions and views about our future financial performance and our business and trends and expectations regarding the markets in which we operate. Those statements, which constitute “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, can be identified by the use of words such as “believe,” “expect,” “anticipate,” “intend,” “plan,” “estimate,” “project,” or words of similar meaning, or future or conditional verbs such as “will,” “would,” “should,” “could,” or “may.” Due to a number of risks and uncertainties to which our business and our markets are subject, our actual financial performance in the future and the future performance of our markets (which can affect both our financial performance and the market prices of our shares) may differ, possibly significantly, from our expectations as set forth in the forward-looking statements contained in this news release.

These risks and uncertainties include, but are not limited to, the following: The risk that the economic recovery will continue to be weak and sluggish, as a result of which we could incur additional credit losses that would adversely affect our results of operations and cause us to incur losses during the remainder of 2010; uncertainties and risks with respect to the effects that our compliance with the FRB Agreement and DFI Order will have on our business and results of operations, including the risk that sales of equity securities by us to raise additional capital could be dilutive of our existing shareholders; the risk of potential future supervisory action against us or the Bank if we are unable to meet the requirements of the FRB Agreement or the DFI Order; the risk that continued weakness in the economy also could lead to reductions in loan demand and, therefore, cause our interest income, net interest income and margins to decline during the remainder of 2010; the possibility that the Federal Reserve Board will keep interest rates low in an effort to stimulate the economy, which could reduce our net interest margins and net interest income and, therefore, adversely affect our operating results; the uncertainties and risks created for our business by the recently enacted Wall Street Financial Reform Act and the prospect that government regulation of banking and other financial services organizations will increase, which could increase our costs of doing business and restrict our ability to take advantage of business and growth opportunities; and the risk that our re-entry in the wholesale mortgage loan business may cause us to incur additional operating expenses and may not prove to be profitable or may even cause us to incur losses.

Additional information regarding these and other risks and uncertainties to which our business and our operating results and the price performance of our shares, are subject is contained in our Annual Report on Form 10-K for our fiscal year ended December 31, 2009, which we filed with the Securities and Exchange Commission on April 1, 2010 and in our Quarterly Report on Form 10-Q for the quarter ended June 30, 2010 which we filed with the Securities and Exchange Commission on August 16, 2010. Due to those risks and uncertainties, you are cautioned not to place undue reliance on the forward-looking statements contained in this news release, which speak only as of its date, or to make predictions about future financial performance based solely on our historical financial performance. We also disclaim any obligation to update or revise any of the forward-looking statements as a result of new information, future events or otherwise, except as may be required by law or NASDAQ rules.

This news release was distributed by GlobeNewswire, www.globenewswire.com

SOURCE: Pacific Mercantile Bank

CONTACT: Pacific Mercantile Bancorp
Nancy Gray, SEVP & CFO
714-438-2500
Barbara Palermo, EVP & IR
714-438-2500

ATLANTA, GA. – September 8, 2010 – Interactive Data, a leading provider of highly accurate right party data and contact solutions and DAKCS Software Systems, a leading developer and integrator for skip tracers and debt collectors announced today the signing of a partnering agreement. Under terms of the agreement, Interactive Data will provide its impressive suite of data sets to creditors and collection agencies via DAKCS gateway.

According to Lex Patterson, President of DAKCS Software Systems, “We are delighted to partner with Interactive Data. Our ongoing goal is to provide our customers with the best product and service offerings in the market today. We enhance their options by partnering with leading edge companies such as Interactive Data. We are confident that this new partnership will provide our customers with great new skip tracing tools that are both cost effective and efficient.

“The combination of the DAKCS platform and our comprehensive data sets offer skip tracers and debt collectors the most cost-effective opportunity to find who they are looking for” said John Schaeffer, President of Interactive Data. “What sold me on the DAKCS team is that they share the same extreme commitment to customer service that we do”.

DAKCS is a powerful collection system designed for the debt collection and recovery industry that boasts both a strong product and service portfolio. DAKCS combines powerful collections tools with next generation dialers and IVR as well as secure 24 hour client access, a comprehensive legal package and secure payment options.

Interactive Data has earned a strong reputation for its ability to innovate and create data sets to fit the needs of today’s dynamic challenges. Products such as “Cell Suppression” and “Relatives and Neighbors” are bleeding edge tools that when combined with Interactive Data’s comprehensive data sets, enables skip tracers to find who they are looking for with the strongest possible ROI.

Schaeffer added that the ongoing economic issues and unemployment scenario continued to create both opportunity and chaos in the collections world. “On one hand you have more business than anyone can handle, yet on the other side you have to have the best tools available to take advantage. It’s all about efficiency in the data and the tools an agency has access to. There is a real cost associated with being wrong and I believe strongly that the Interactive Data/DAKCS Relationship.

About Interactive Data
Interactive Data LLC (ID) is the industry leader in locating and identifying individuals that are typically difficult to find. Based in Atlanta GA, ID offers a variety of search products, including Social Security, Real Estate Listings, Death Index, and Bankruptcy listing searches, as well as Data Warehousing, Cell Suppression, FDCPA Scrubs and cost-efficient unmask-pricing for Directory Assistance. Leveraging more than a decade of collections industry experience, ID creates relevant, customer-focused searches that are both comprehensive and cost effective. Each of these products work seamlessly with IDs advanced online and batch products. For more information, please visit www.id-info.com, or call (866)584-2295.

About DAKCS Software Systems
DAKCS Software Systems, Inc. is an experienced accounts receivable management company offering debt collection software. DAKCS Software Systems listens to their clients and their needs and continually keeps their products updated for the ever-changing collections industry. Their debt collection software works in a user-friendly Windows environment with many integrated features for accounts receivable management needs. For more information please visit www.dakcs.com or call 800-873-2527.

An executive vice president of the company, Sloan has served most recently as Wells Fargo’s head of Commercial Banking, Real Estate and Specialized Financial Services. In that role, Sloan oversaw operations within the Wholesale Banking group that provided credit and non-credit products and services to more than 40,000 customers worldwide. His groups included more than 25 distinct businesses with more than $200 billion in assets, operating out of more than 440 offices in 40 states and in Asia, Canada and London. Those business lines will remain in Wholesale Banking.

“Tim has demonstrated the kind of business acumen and leadership that inspires teams to higher levels of performance,” said Stumpf. “He is a trustworthy and effective ambassador for the company, having cultivated long-term relationships with many valued clients. He listens, as well as leads, and he lives Wells Fargo’s customer-focused culture. These qualities make him the right individual to lead a more holistic approach to how we communicate our brand, engage with the communities we serve and develop our people. His selection and this reorganization fully reflect our view that Wells Fargo’s profile and opportunities, especially in light of our historic merger with Wachovia, are poised to grow.”

With more than 25 years of experience in corporate, commercial and real estate banking, Sloan assumed his current role in 2006. From 1997 until 2006, he was the group head of Specialized Financial Services. From 1994 to 1997, he was executive vice president and division manager of the Real Estate Merchant Banking division within the Capital Markets group. He joined Wells Fargo in 1987 after working three years at Continental Bank in Chicago.

Sloan serves on the boards of Overseers of the Huntington Library and the Jardin de la Infancia Charter school, and as an associate trustee of the San Marino Schools Foundation. A graduate of the University of Michigan, Sloan holds bachelor’s degrees in economics and history and an M.B.A. in finance and accounting, and serves on the university’s Ross School of Business Corporate Advisory Board. Sloan was born in Cleveland, raised in suburban Detroit and currently lives in San Marino, Calif. with his wife and three children.

Wells Fargo & Company WFC is a nationwide, diversified, community-based financial services company with $1.2 trillion in assets. Founded in 1852 and headquartered in San Francisco, Wells Fargo provides banking, insurance, investments, mortgage, and consumer and commercial finance through more than 10,000 banking stores, 12,000 ATMs, the Internet (wellsfargo.com and wachovia.com), and other distribution channels across North America and internationally. With more than 278,000 team members, Wells Fargo serves one in three households in America. Wells Fargo & Company was ranked #19 on Fortune’s 2009 rankings of America’s largest corporations. Wells Fargo’s vision is to satisfy all our customers’ financial needs and help them succeed financially.

Photos/Multimedia Gallery Available: http://www.businesswire.com/cgi-bin/mmg.cgi?eid=6417910&lang=en

Wells Fargo
Mary Eshet, 704-383-7777 (Media)
Jim Rowe, 415-396-8216 (Investors)

Copyright 2010 Business Wire

“We’re incredibly proud of our Champions program. Because of the high caliber of the program’s participants, we knew that our co-chairs had to be engaging, informed and dynamic members,” said Shawn Santos, Director of Programs & Community, TSIA. “We’re excited to see what the Professional Services Champions program will accomplish under the leadership of the co-chairs.”

For over three decades, TSIA has served the needs of professionals across the full spectrum of technology services disciplines. The Champions program consists of one or more representatives from each member company. Champions meet six times a year to discuss TSIA content and industry best practices. The four co-chairs are responsible for guiding the Champions program and serving as the voice of the Champions. In addition to Childers, co-chairs include: Mike Uveges, Mentor Graphics; Bob Westercamp, Teradata and Rob Spreadbury, NCR. Childers has served as Ontario Systems’ Champion since 2007.

“To be chosen as a Professional Services Champions co-chair is a great opportunity and honor. I am very excited to bring new ideas from Ontario Systems about the professional services space and act as a representative for the Champions and TSIA,” said Childers.

As a senior manager in professional services, Childers is responsible for the overall execution of service strategy and development of strategic relationships to drive client success. Since joining Ontario Systems in 2004, he has been a critical leader in the development and evolution of the professional services organization. Childers’ accomplishments include leading the development of Launch Savvy – Ontario Systems’ implementation methodology – and creating the professional services balanced scorecard and reporting metrics.

This announcement follows on the heels of Ontario System being selected by TSIA to present its Balance Scorecard (BSC) Management System at the Technology Services World (TSW) conference on October 18-20 in Las Vegas, Nevada. Ontario Systems will demonstrate how it has utilized the Balanced Scorecard to implement its mission and vision and achieve tremendous results for its organization and clients.

For additional information on TSIA, visit www.tsia.com. For more information regarding Ontario Systems’ Professional Services, visit www.ontariosystems.com/index.php/ar_management/professional-services.
About Ontario Systems
Founded in 1980, Ontario Systems, LLC, is a leading provider of revenue cycle and collection management solutions for the health care and accounts receivable management industries. The company’s customers are among the nation’s top 100 hospitals and health centers. More than 55,000 representatives in more than 500 locations – including nine of the top 10 U.S. collections firms – use Ontario Systems software and services. More information, call 800-283-3227 or visit www.ontariosystems.com.

About TSIA

The Technology Services Industry Association (TSIA) is the leading association for the technology services and support industry. Our ranks include thousands of services executives, managers, and professionals from around the globe. These leaders represent the world’s top technology companies as well as scores of innovative small and midsize businesses in four major markets: enterprise IT and telecom, consumer technologies and carriers, healthcare and healthcare IT, and industrial automation. www.tsia.com.

Copyright 2007 by Collection Advsor

In receiving the coveted “non-qualified” report, an independent auditor has verified that The CMI Group (www.thecmigroup.com) has proven controls and effective business practices relative to data security, financial transaction processing, vendor management, employee relations and operational excellence.

Tom Stockton, CEO of The CMI Group, said, “Since its inception CMI has strived to provide the most innovative services to our clients. We have also been committed to assuring our clients that they can trust our processes as well as the security of the data they supply to us. That’s why I am proud to add SAS 70 Type II certification to our PPMS certification as a means of demonstrating our continued commitment to excellence.”

The CMI Group utilized the Hampton Pryor Group, LLC(www.hamptonpryor.org) to prepare them for the audit. Carrie Finney, CFO of The CMI Group, said, “The Hampton Pryor Group has experience working with accounts receivable management companies, so their knowledge of the industry was helpful throughout the process.”

About The CMI Group
Celebrating 25 years in the accounts receivables management industry, The CMI Group is a leader in first and third part collections services. With operations centers in Carrollton, TX and Tempe, AZ, The CMI Group is proud to include some of the top utilities, medical facilities, and financial services providers on its impressive roster of satisfied clients. Their professional and innovative approach to the age-old problem of debt recovery results is exceptional operational efficiency and superior returns for clients.

AUSTIN, TX–(Marketwire – September 2, 2010) – BancVue (www.bancvue.com), just announced as one of Inc. 500′s fastest-growing private companies in America for the second year in a row, announced it has successfully negotiated the purchase of the Silverton credit card portfolio from the FDIC.

The portfolio is comprised of credit card accounts representing nearly 700 agent bank relationships and will be managed under the name “BancVue Card Assets,” effectively doubling BancVue’s client base.

According to Don Shafer, Chairman of BancVue, the company’s mission is to empower community financial institutions to win the war against the mega banks. Shafer shared that one of the findings from their extensive consumer research was, “… if a community banking institution does not offer their own branded credit cards, then in the mind of the consumer that financial institution can’t really be competitive when it comes to products when compared to a mega-bank. Our commitment is to deliver market ready solutions to our clients that will shatter that perception!”

Shafer says his excitement comes from knowing this acquisition will help BancVue empower its client partners to compete with megabank-branded credit cards.

“There are thousands of community financial institutions across the country that want to be full-service providers to their account holders,” says Shafer, “and having their own branded card will help them be just that. In fact, we intend for these cards to become ‘top of wallet,’ literally replacing the cards branded by the megabanks.”

For those institutions that may not want to build their own credit card portfolios, BancVue has teamed up with First Arkansas Bank & Trust (FAB&T) of Jacksonville, Arkansas to serve as a sponsor bank, therefore ensuring that every community financial institution can provide their own branded cards to their account holders.

Larry Wilson, FAB&T’s Chairman and CEO, says, “… with the new BancVue card offerings, there is nothing stopping any financial institution, regardless of their asset size, from providing their own branded cards.” Wilson believes that, “… for community banking institutions to better compete, we need to seek out like minded business partners to help us bring mega-bank type products to market.”

Wilson added that he never imagined that his second-generation family owned bank would be in a position to help other community institutions like his own to be able to launch a new product offering.

Wilson further added, “It’s great being part of a team that is totally focused on empowering other community financial institutions like FAB&T to compete against the big guys!”

BancVue will also be offering a full service card program for those community financial institutions that want to run their own credit card program as a direct issuer. More details on that program will be provided at a later date.

About BancVue
BancVue (www.bancvue.com) is the leading provider of innovative products, marketing, and consulting solutions to community financial institutions nationwide. Now serving over 1,300 community banks and credit unions around the country, BancVue’s solutions allow these institutions to compete and win in the war against the megabanks. Community financial institutions benefit from the development and implementation of BancVue products like Kasasa®, a national brand of superior products that gives community financial institutions marketing scale, and REALChecking®, a system of groundbreaking products, superior marketing, and data-driven consulting. For more information on BancVue, visit www.bancvue.com.

Contact:
Dan Mahoney
Email Contact
www.csg-pr.com
970.405.8060

September 2, 2010 – Fredericksburg, VA –Today’s savvy business owners and finance professionals have asset-based finance methods on their radars as a viable alternative to traditional bank loans for their business financing. For an established company in need of fast money to meet its current obligations, to finance a growth spurt, or to provide a reliable, debt-free source of working capital financing, accounts receivable financing offers an excellent solution. According to Mike Lieber, president of AEGIS Financial Solutions, Inc., and creator of a new business financing web site (http://www.smart-business-financing.com), accounts receivable financing is no longer just a business lifeline but has moved into the mainstream of commercial finance since the onset of the credit crunch in 2008. “When the banks clamped down on business credit, companies were forced to search for alternatives in order to survive,” he says. What is accounts receivable financing? When a business performs works or sells goods to a customer who does not immediately pay for the work or product, a receivable is created. Typically, an invoice is sent to the customer documenting the goods or services rendered, the amount due and the terms of payment, normally 30 days, but sometimes longer. On the one hand, granting terms allows a company to attract customers. Many companies, larger ones in particular, and government agencies expect extended payment terms and will refrain from doing business with companies that do not offer them. “By offering terms, a business can grow its customer base, and it will probably sell more to its current customers, too,” says Lieber. The downside is that for a business owner in need of quick money, a stack of open invoices can mean lost opportunity, or worse. Accounts receivable financing allows a company to convert those invoices to immediate cash, eliminating the obstacle of extending terms to current and prospective customers. Two common methods are: Accounts Receivable Factoring … By far the most versatile and widely used of the techniques, receivables factoring is the straight sale of a company’s (the client’s) invoices to a factor – a cash flow business, or finance firm – at a small discount. The factor immediately advances a pre-determined lump sum payment to the client, typically 70% to 90% of the total invoices, holding the remainder in reserve until it receives payment from the client’s customers. Once the invoices are paid in full, the factor collects its discount (generally between 1% and 2%) and forwards the balance of the reserve to the client. Accounts Financing … Unlike receivables factoring, accounts financing is structured as an asset-based loan, most often a business line of credit. The client’s invoices are pledged as collateral for the loan, which, also unlike receivables factoring – a perpetual arrangement – generally has a fixed term of 3-5 years. Accounts receivable financing will not work for every type of business. Companies that sell products and services exclusively to consumers or businesses who pay in full with cash or credit cards cannot ordinarily use it, since there are no receivables to sell or to pledge as collateral for a loan. For any firm with creditworthy business or government customers, accounts receivable financing is a tool to build and sustain a thriving company. With an asset-based loan, a company can have a new business line of credit, giving it a ready source of business capital with the maximum flexibility possible. And for small and midsize firms, receivables factoring, an incredibly powerful and versatile tool, could very well be the only source of working capital financing available apart from the private funds of the owners. About AEGIS Financial Solutions, Inc.: Since 1998, AEGIS Financial Solutions, Inc. has offered uncommon solutions to common problems using the fast, flexible and powerful resources of the cash flow industry and asset-based finance techniques. Helping people solve financial problems and get money when they need it most, without bank loans, is what we do best. Press Contact: Mike Lieber, President AEGIS Financial Solutions, Inc. 88 E. River Bend Road Fredericksburg, VA 22407 mjl@aegisone.com PH: (540) 548-2270 ###

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