Accounts Receivable Factoring from Westgate Financial Corp.

COST ESTIMATES

Factoring Cost Estimate Form
*Item*		*Value*
Annual factored sales:
Net sales terms in days (example: 2/10/30 is 30):
Estimated receivables turn (15 days beyond net terms):		{tpESTREC}
Non-seasonal receivables balance:		$ {tpNSRB}
Average non-seasonal advance percentage against receivables (example: 70% of outstanding AR balance):		%
Average non-season advance amount:		$ {tpNSADV}
What is the prime interest rate?		{tpPI}%
Your interest rate is a spread over the prime index; enter the spread, 3-5% depending on risk:		%
Your interest rate is:		{tpIRATE}%
Interest expense:		$ {tpIEXP}
Interest expense as a percentage of sales:		{tpIEPER}%
Factoring commission; 1.5 - 3.0 %, depending on sales, customer risk, and average invoice size:		%
Factoring commission charge:		$ {tpFCC}
Total factoring charges:		$ {tpTFC}
Total factoring charges as a percentage of sales:		{tpTFCPS}%

Purchase Order Financing Cost Estimate (Note: All fields in Factoring Cost Estimate section above must be completed first.)
*Item*	*Value*
Projected credit approved sales for purchase order "program":	$
*Budgeted production costs of project:*
Basic raw materials:	$	{tpRAWP} %
Direct labor:	$	{tpLABP} %
Ancillary direct costs:	$	{tpANCP} %
Freight & Duty:	$	{tpFNDP} %
Other:	$	{tpOther} %
Total production costs:	$ {tpTC}	{tpTCP} %
Gross margin (*) :	$ {tpNP}	{tpNPP} %
Westgate Fees:
P.O. Funding Fees; 4-10% depending on deal:	$ {tpPOF}	{tpPOFP} %
Factoring Fees:	$ {tpFCTF}	{tpFCTFP} %
Interest Expense:	$ {tpINTEX}	{tpINTP} %
Total Fees:	$ {tpTF}	{tpTFP} %
Pre-tax, pre-operating expense profit:	$ {tpCP}	{tpCPP} %

* Gross margin must be at least 35% to qualify for
purchase order funding.