Did I Make A Bad Lending Decision

As with anyone sitting in the driver's seat of a lending company, there is always a cloud of worry looming. With any client, there always has to be a precaution taken with a deal. Experience only tells us that things can go south with any financing deal. The question we want to cover is, what makes us feel more comfortable in our own skin? Also, we will talk about handling an account we have worries about.

Your young hotshot sales guy just picked up a deal that seems to be paved in gold, great, where do we sign? Everything starts out great, excellent communication, easy verifications, but then something happens... It may not be the same case every time, but there is always a noticeable silence, an extended time between a payment, or something that raises a 'red flag'.

The flag has been raised, now where do we go in trying to get to the bottom of issue? Start with the facts - subtly ask your client if they know anything about a delay in payment, ask for a payment schedule, or just ask the status of a customer. The key is to tread lightly. Applying pressure to a  bruised fruit will only bring about problems.

After pursuing the previous avenue, and not having any luck, it is time to move on to the next step, the customer. Do some research on the internet, see if you can find any recent news about the company on the internet. Google has a great search to use for recent articles.

Check to see what that turns up, then you may have to move forward. At Lenders, we use multiple credit reporting agencies to see what customers are credit worthy. Commercial Credit Reports offers a great reporting, where they send changes in customer's AR, liens, finance updates, and banking updates, to keep us posted. I highly recommend this for a thorough report of a company's credit report.

The next step would to be to talk to your client. Discuss with them the current aging for the customer, ask about any issues they now of, etc. Escalate it to your client's credit manager, and ask about the payment experience from the last 60-90 days.

After getting all of the information you need, see if you can find some fresh trade and bank references. If you have a large exposure with that particular customer, we would recumbent asking for financial statements if the exposure is something to worry about.

Take all you have learned from this investigation, and get back with your client to share the info and discuss proper credit limits, and how to move forward with the customer in question.

Live Long and Factor!

Economic Changes Affecting Factoring Loans & Bank Loans

As we all know, the market for factoring and bank loans changed drastically after 2008. Banks had receded to minimal loans, and avoiding making deals with any hair on them. Now that the economic climate is clearing up, banks are changing their once conservative lending policies.

The factoring game has been changing in the last year. Banks are taking riskier deals, and competition in the factoring world is changing. Factors are assuming more risk, and less quality deals. A main point to consider is despite the fight to get a deal through, never discount your due diligence. The quicker one is to the trigger, the faster a problem can arise.

Since we know the mistakes people have made in the past, let's review what we should do, & watch out for:

• Due Diligence - Never cut yourself short when it comes to Due Diligence: There may be a couple of offers on the table, but it is better to be certain about what you are getting yourself into, rather than just adding a new client. preparation is key to avoiding a financing mistake.

• Hastiness -  The prospective client is looking for funding, love the program, but want funding within a week or two. Does that sound fishy? You're darn tooting right it is! If someone is trying to rush you into signing up a client, and financing them; someone is trying to cover up some tracks. Following due diligence is perfect, because this is a step you can not have to worry about if you have taken care of your DD.

• Financials - Well everything is looking good, maybe too good. Make sure that a company does not have any other entities by running a credit report. Check out what is going on behind the scenes, so you can get your arms around the whole picture of the prospect.

• Inflated Projections - Oh you're expecting to from a 100k company to a 100mm company in two quarters? Yeah, let's hop on board with that. Be realistic when analyzing projections for companies. Inflated Revenues and Profit Margins can be misleading, so be weary.

• Parent Companies - If the parent company is based out of the country, where do you think they will be when they go under?

• Outstandings - Be sure to keep a watchful eye on your client's out standings. With more customers comes more responsibility, and you must make sure to not let anything slip through the cracks. Have account executives pay attention to aging reports, and to stay on top of payments from customers. If someone has to rattle some cages to get paid, so be it. At the end of the day, you do not want to be the one devoid of a check.

There are some watchful tips to keep an eye out for. Changing markets means changing economies, you never know when a company will go sideways. The key is to make sure your fail-safes are in place, and that when your money is out the line, it is also retrievable.


In honor of the new Star Trek movie coming out, here's a new one for you Trekkies!

thanks for the image, Bowling in the dark

Online Publishing Has Its' Perks

We have clearly abandoned all needs for the world of print media, in lieu of the digital age. As some companies have been trying to diversify, and overcome; there are some that cannot stand the heat and have folded.

The amazing part of this concept is that the traditional newsfeed is totally changing. An online news reporter no longer has to report on breaking news; this reporter can be writing about 50 silly cat photos, or 10 reasons I should have never left Iowa. If it draws a reader's eye for reasons other than staying up to date on current events, it can make money. This goes to show that the current trend is anything to keep the brain engaged.

Well who are the current big players in the online publishing world? There are a ton, but a few big names stick out to us.

The Huffington Post - They have changed online reporting; The Huffington Post has been around for 8 years, and has strongly diversified what they report on. Topics range from multi-part stories, celeb-buzz, breaking news, etc. Their diversification in what they report has become the chagrin of many of its' competitors.

Vox Media - Started by Steve Bankoff, an ex-AOL exec; they have multiple blogs now such as SBnation (sports), The Verge (Tech), and Polygon (Gaming). Vox has become profitable and a prominent voice in their niches of the blog world. Their attention to detail, and quality journalism, sets them apart in this saturated market.

Buzzfeed - This website is the polar opposite of others we have previously listed. This is the beauty of the internet. Buzzfeed makes lists, images, and descriptions that are just humorous. Posts can range from 12 things to do with your cat, or a text you should never send. A fun, light, website, with helpful articles as well. Jonah Peretti, ex-Huff Post, serves as the CEO.

These are all very successful blogs. With the correct gusto, intriguing content, and some new ideas, anyone can make some cash off of blogging.

The times they are a changin with the online media, and publishing efforts.


Enjoy the weekend, don't be like a blogger, and go enjoy the weather!

Changing Content Requirement Affects Current SEO Strategies

As any web developer, blogger, or entrepreneur knows, the key to making your business known online, is showing up on the first page of an online search. Up until recently, companies were dumping money into marketing & SEO firms to get their websites to the top of google rankings. The analytics, SEO, PPC, and other factors were key to making the changes necessary to getting up to that point. With Google changing around its web crawling bots, the game is changing. New algorithms change how we gain popularity through searches.

Here are the things that need to become the keys to focus on:

Quality Content - The new king of google rankings is quality content.  To make your site seen, the quality must be there. Just typing random blurbs that connect to nothing, mean nothing. Make a point, an argument, a statement, or something helpful. This will draw readers in to share, talk about, and blog about. Make it readable, and make it enjoyable. Find a topic, talk about, don't ramble (like I do), and it is a pretty simple concept. Make content that people will be engaged in.

Social Media - Oh, you want your name on the top of the search engine results? So does the rest of the world. Where can you find the rest of the world? On Social Media (who'd of thunk it). Get your twtitter handle, facebook page, facebook fan page, pinterest, intstagram, or whatever you find necessary to engage your target audience. Ask them questions, share funny photos, share cool photos of your product with trendy filters, and the options are endless. Get social. Get friendly. Get slightly annoying, but don't overdo it. Too much repetitive nonsense will make your friends/followers/groupies drop off faster than Kirstie Alley on another crash-course diet.

Paid Links - Always handy if you have the extra cash. Pay for some advertising in banners, videos, or just PPC. Find the right ingredients, and anyone can make spaghetti.

Authorship - You have an interesting article, that's fun. You have an interesting article from a Harvard study, even better! Having an authority behind what you publish makes it that more desirable. Make sure to cite the source, and where you got the info from, and a back link is always appreciated.

Mobile - The year is 2013, you know you can't live without a cellphone for 3 minutes. Phones are attached to hips, and hips are attached to chairs in front of computers, thus is life. Anything being put onto the internet should have integrated mobile versions for visibility. New ads are becoming available for the smartphone market, and truly changing the game of advertising. Don't miss the wave, and be left bobbing in the ocean. Optimize for mobile, and don't forget it.


There are some easy pointers to some changes in the SEO world. Make due by changing your ways, adapting to new strategies, and doing a little research of your own.

Live Long & Factor  _\\\///

Factoring Loans

Asset Based Lending

SBA Loans

Are you Factoring Me?

My blog postings have been scarce with all of the new business LCF's business model has been creating, my apologies to our sincere followers. The whole concept of transparency is really becoming a winning factor in our asset-based lending industry. Many companies try to change the game, but all they do is change the fees. Simplicity & kindness are key in this business.

Some in competition with us may say, you can't change the game, there is only one way to do it, we have been in the business longer. That is what our competition would tend to think in the receivables business, but it isn't true.

Lenders Commercial Finance makes it a point to keep things simple for everyone, because who wants to have to read through stacks of paperwork, only to find out they are probing you with more fees than an alien in Area 51? Simplicity, LCF only establishes a Convenient Daily Rate with no other hidden fees, nothing else is tacked on, no start up fees, no ending fees, no fees for looking at someone, no fees for making the mistake of going to a traditional factor to start with, NADA.

It is plain, it is simple. So if you have a business with an existing sales channel, credit worthy customers, a product or service to sell, give us a call. At LCF we were started by entrepreneurs with the point of fixing what is wrong with the receivables industry. We are changing the game, and hope to have your company save money with us soon.

Live long and factor, my friends.   _\V/


Factoring Loans

Business Brokers create less need for a Sales Force

We pride ourselves in the bonds we grow with our clients, and the brokers that represent us with prospects. A key to a successful business relationship is friendly, courteous, and professional communication. In the financing industry there are deals that work, and there are deals that do not work, it is plain and simple.

Brokers are the lifeblood of our business. With constant communication and information exchanges, you can extend your salesforce exponentially. They may not be on our payroll, but they still have the broker fees that make up for not being connected to a financing business. These business relationships are what make business exciting. Every day there are new, and exciting deals that are pushed forward by the bridge builders. Working in the industry you get to see how businesses are developed, built, thrive, fail, stumble, and recover. It really opens up your eyes, and gives a valuable lesson in the business realm.

That being said, check out our friend Tom Dewell's blog, Alternative Commercial Finance , to learn more about his side of the business, learn some tips, and see another side of the coin in the finance world.

Lenders Commercial Finance: Your Answer to Factoring Loans

10 Reasons Why You Shouldn't Factor Your Receivables

Any small business has heard about a factoring company. They are very cookie cutter, expensive, and have a small window to fit in if you want financing. The problem with this is that if you do fit into that small window of doom, a factoring company will charge you a ton of sneaky fees, and rob companies of their profit.

Since here at Lenders Commercial Finance, we are not a factor, we are an asset-based lender; we will be discussing the benefits of using a company that likes to think out of the box when it comes to financing companies.

1. Advance Rates - that is the big part of the equation, as a small business, how much money will we get out of financing our receivables? Our rates on advance vary from 75%-90% of the invoice, as compared to 70%-85% that a factor will give. That means more bang for your buck!

2. Rate Periods - 
Factor - 5 Day, 10 Day, 15 Day, 30 Day Chunking
LCF - Convenient Daily Rate, No Chunking

3. Rates Applied To - 
Factor - Full Invoice Amount (Regardless of Advance Rate)
LCF - The Net Amount Advanced

4. Typical Rates - 
Factor - 2%-4% every 30 days
LCF - 0.069% to 0.089% for each day

5. Float Days - 
Factor - 3 to 5
LCF  - 1 or 2

6. Required Reserves -
Factor - Typically 10%
LCF - No Reserve Requirements

7. Factor All Your Accounts -
Factor - Usually Required
LCF - Not Required

8. Factor All Accounts with Single Debtor
Factor - Usually Required
LCF - Not Required

9. Factor When Confirmed with Debtor
Factor - Usually Required
LCF - Can Hold Your Invoices Up to 15 Days Before Due Date

10. Repurchase Your Invoices Early
Factor - Not Allowed
LCF - Allowed Anytime


There are the first 10 ladies and gentlemen!

As you stew over that pretty little list, I will start working on the next 10.

In the meanwhile...