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...

Simple, Proven Ways to Increase Page Traffic

Anyone who has a blog, e-commerce store, or webpage, is always wondering: "How do I increase my ranking on a search engine?" There are a many different ways that apply to marketing experts, and amateurs alike.

These techniques are applicable to anyone in the field; a few easy steps will have you taking steps to increase the web presence of your site.

Start A Blog - It's easy, customizable, and with a little effort, you can have regular readers and glances at your blog. The topics do not have to be anything in particular, write about what is on your mind, sports, activities, hiking, cars, the world is your oyster. While writing your blog make sure to use keywords with links to your website to drive traffic. Hop onto Google Adwords and find some easy and difficult keywords to narrow your gaze on. Make sure to include pictures and keep it vivid! Consistency is key; if you start a blog, make sure you stay up to date on weekly updates. Post a picture, a list, a fun fact, stay consistent!

Free Stuff:  Who doesn't love free stuff? Scour the internet, find deals, drive traffic to your site by offering something for free, then add some advertising, and boom, sales & advertising that make you money. For a great example try out Sites180's lovely site, It's What Jen Says she knows her stuff!

Social Media: I say this with hesitancy, but yes, it does help. A twitter account can be helpful, by posting guidelines, 144 characters of knowledgeable information. Share links, photos, anything that may get someone to click on it. Avoid just trying to get followers, and find people that are in the industry and something you can talk about, connect to, plug if need be.

Facebook: This word does not mean start telling your friends to visit your site by posting pictures of cats talking, half naked women, or quotes by people who have died centuries ago. That word means post helpful, intelligent things, no baby momma drama. Ask your friends and acquaintances for opinions, suggestions, and constructive criticism. Make a fan page, but keep it current.

Pinterest: Selling things? Try pinning some ideas and uses for your products!

Directories: These bad boys are easy to use! Make a dummy email account, sign up, post your website under the correct indsutry, and away you go! Check this link out for a list of top directories that you may find useful.

Article Submission: Hop on Reddit, Digg, or any article based website, and submit something off of your blog. If it is approved by something like Ezine you never know where in the world people will be viewing your website from!

SEO: Try reading up on some Search Engine Optimization techniques. SEOmoz offers some great tools to learn how to start out. If you are too busy, hit the SEO link, and check in with one of the country's top firms.

Backlinks: If you have done business with other websites, ask for a link. Maybe they have a blog, and can post a positive review about your company.

Press Releases: For under 400.00 you can have a website write a press release for you, include an SEO package, and distribute it across the web. Watch your keywords jump up through the rankings as this easy-to-do, and low cost piece does its' due diligence for your company.


Take these easy tips, find some free time, and enjoy the journey.

As always, your faithful and loyal scribe, Mike

Lenders Commercial Finance - Factoring Loans

Say Hello To My Little Friend!

We at Lenders like to enjoy the humor in everyday life.

Here is another one of our finance jokes

Small Business Loans

Skin Care for Women

Eye of the Financier, my rocky comic

As any day goes by, a mind tends to wonder. Whether it be about what the plans are for the evening, the cadre of things you forgot to do at work, or in my case, what to blog about next. Writing an article about every good and bad thing that happens in an industry can become monotonous, tiring, and blatantly bland. With this thought in my mind, how do we change up a seemingly bland industry? My artistic side kicked me in the shin and said, 'hey, let's make popular cliche' movie lines into comics.' Thus my new blogging idea has sprouted; to take the most famous movie quotes, and turn them into cheesy, corny, and humorous one still frame comics.

So in the next couple of weeks, try to enjoy the dry humor I have, and if you're in the industry, maybe some of the themes will ring true. Make sure to drop a line, tell me what you think, and I'll be more than glad to comment back.

To start off, my homage to Sylvester Stallone in Rocky, with his famous line: "Yo Adrian, I did it!"

Earlier this year, as part of my bucket list tour, and since I am from Pennsylvania, I took a trip down to Philadelphia with my running buddy, and we did a 7 mile trek to the Philadelphia Art Museum, and climbed the legendary steps. It was a gorgeous October Sunday, the air was crisp, the streets were not overly crowded, and we had a plan. After scouring running blogs, and checking for signs of the route that Sly ran in the movie, I came across a remote map that wasn't completely accurate, but a good start. Panning through the training scene I found a couple of more roads. We started on the south side of Philly, 16th Street I believe, ran through the capital building, past the Rodin exhibit, through the Czech parade that was going past the museum. A perfect run, a great time, and an experience, I care to never forget. One of those cheesy moments in your life that will always make you smile.

With that being said, enjoy.

Luke, I am Your Factor!

So Sometimes at work, my artistic side takes over, and decides to make cliche' comics from common sayings. It keeps me occupied.

If you have suggestions, let me know! My wit does not run on for eternity.

Your Patowan for procuring financing for your small business loan,

Mike

Another lovely Press Release for Lenders CF

Lenders Commercial Finance Announces Innovative Full-Cycle Financing

An Alternative to Traditional Financing/Factoring

Alamo, CA January 28, 2012:  Lenders Commercial Finance, an Asset-Based lending group in the San Francisco Bay Area, has announced the launch of their new Full-Cycle Financing Program.

The tight credit market has impacted countless small and mediums sized businesses that are experiencing cash flow problems. The lack of sufficient operating history and the financial resources to qualify for bank financing often becomes a critical issue for businesses in the SMB space.

Designed to help entrepreneurs overcome the limitations of traditional business loans, LCF loan programs can solve a number of business challenges - building out or acquiring the inventory needed to book and fill new orders, meeting outstanding obligations, bridging cash flow gaps, and paying off obligations that are a drag on businesses.

Full Cycle Financing covers 100% of the cost of getting product from the manufacturer to a buyers loading dock. Post delivery, additional funding up to 90% of the invoice is available, providing additional working capital. Invoices are paid into the LCF lockbox, and fees are deducted from the remaining 10% - the balance is then remitted to Lenders clients the next day.

Ken Wilkens, CEO, commented, “The concept is easy, start when you would like, and stop when it makes sense for your business. LCF provides reasonable terms, rapid turnaround, no hidden costs, and no long-term commitments. Our business model is built on honesty and simplicity for client and customer. ”

Lenders COO, Cal McGinnis, remarked: “We designed this program to help the small manufacturers, wholesale distributors, and service companies who drive American industry to establish working capital lines of credit that have become a difficult find in today’s commercial finance industry.”

#####

Lenders Commercial Finance was founded by a group of San Francisco Bay Area entrepreneurs to help other business owners resolve the same cash flow problems that they experienced in building a number of successful businesses. Lenders provides asset-based loan programs, accounts receivable financing, and equipment dealer flooring services. For more information, please visit: www.lenderscf.com

Asset-Based Lending Press Release

Come and get it! Read all about it!
Lenders is preparing to release a press release in the coming week.
It discusses our new Full-Cycle, commercial lending program, enjoy.

Lenders Commercial Finance Announces Their Full-Cycle Financing

The New Alternative to Traditional Factoring

Alamo, CA January 15, 2012:  Asset-Based lending group, Lenders Commercial Finance, announces the release of their new Full-Cycle Financing Program. Cal McGinnis, COO, stated: “At Lenders, we designed this program to help the small manufacturers, wholesale distributors, and service companies who drive American industry to establish working capital lines of credit that have become a difficult find in today’s commercial finance industry.”

Lenders can help clients build out or acquire the inventory they need to book and fill new orders. From port to port, warehouse-to-warehouse, their adaptable programs have many business plans covered.  After acquisition, LCF will fund a client’s firm purchase orders so they can get their product where a customer needs it, when they need it. Finally, Cash out; LCF will finance a business’ accounts receivable and provide the funding needed to take on new business. Other services are accounts receivable factoring (recourse and non-recourse,) and equipment dealer flooring for serial numbered product with short-term sales cycle.

The lack of sufficient operating history, or the financial resources to qualify for bank financing in today’s tight credit market can have a negative impact on business. Additional working capital to inject into client’s business will allow them to take advantage of opportunities to expand. Perhaps funds are needed to catch up with vendors or pay off other obligations that are a drag on businesses.

Lenders has changed the industry with up front, and honest programs. Their goal is not to lead clients into a financing program with hidden fees, or forcible contracts. Ken Wilkens, CEO, stated: “The concept is easy, start when you would like, and stop when it makes sense. LCF provides reasonable terms, with fast turnaround, no hidden costs, and no long-term commitments. Our business model was built on honesty and simplicity for client and customer, and that is what makes Lenders Commercial Finance different.”

Rather than dealing with a factor or a big bank, Lenders can make their business applicable in all parts of industry. Their commitment to success, and our supportive staff makes sure that their portfolio of business thrives. As a company that was started by entrepreneurs, they have experienced the same battles and successes of business, which is why Lenders Commercial Finance was started, by entrepreneurs for entrepreneurs. 

Make sure to visit Lenders Commercial Finance 

and see how we can help your business grow

Father Time is becoming forgiving these days

Enjoy the article, don't forget to read my synopsis at the bottom

"Sixty-five is the normal retirement age, but many older Americans are working much later in life and it's not just because they need the money.

The number of workers who are 75 and older has skyrocketed by 76.7% in the past two decades, according to research by the AARP Public Policy Institute. "We are living longer, healthier lives," says Kerry Hannon, author of Great Jobs for Everyone 50+. "And the types of work that people do is not as labor intensive as it was in our parents' generation."Sixty-five is the normal retirement age, but many Americans are working much later in life, and it's not just because they need the money.

There are a number of reasons why Americans workers may decide to put off retirement. Some may just love their jobs; others may need more money. But even those who have socked away plenty of cash are often terrified about rising medical bills and want to keep earning, Hannon says.

While the 75-plus group of workers has jumped, it's still a small percentage of the American labor force. It represented 7.6% last year, up from 4.3% in 1990.

But there might be more 75-plus workers if it were easier for them to keep their jobs. "I really love my work, and I feel quite useful," says Judge John J. Driscoll, a juvenile court judge in Westmoreland County, Pa. But because he turned 70 last year, he now faces mandatory retirement.

Instead of quietly retiring in January, Driscoll joined five other Pennsylvania judges in a lawsuit seeking to have the right to continue working past age 70. The case, filed in November, claims that Pennsylvania's mandatory retirement provision discriminates against people on the basis of age.

It's hard to know how many older workers are also forced to retire. But there is a growing number of older Americans who are not retired and are in search of a job. The number of unemployed Americans age 75 and older increased from 11,000 in 1990 to 75,000 in 2011, according to AARP.

Some might have lost their jobs during the recession and haven't been able to find another. "The longer you have been out of the labor force, the less likely you are to come back in," says Sara Rix, senior strategic policy adviser at the AARP Public Policy Institute. "There is the question about skills, whether you have what employers want because technology has kept changing while you've been out of work."

American who are 75 and older tend to have certain types of jobs. For example, 25% have professional occupations, such as doctors and lawyers, while another 25% have jobs in retail trades, Rix says.

Older Americans in search of jobs should consider growing fields, such as health, education and not-profit organizations, Hannon says. "All kinds of small businesses need people with expertise," she says. "Then you can have a part-time gig with flexible schedules.""

Courtesy of: Christine Dugas, USA TODAY

        I found this article interesting for multiple reasons. First, as a resident of Pennsylvania, it was surprising that an employer can give you the nudge into retirement from your job; if you can no longer do the work, or are significantly slowing down a process, it is understandable. The other zinger is the percentage of people who aren't ready to stop working, go old people!

People who are getting up in their years to stop working, is a hindrance on their longevity. This conversation is always a good one to see what other people think: if you continue your lifestyle through adulthood and into old age, such as work, activities, so on and so forth, will that help make your body forget how old it is? Will continuing to live a proactive lifestyle ward off the sedentary lifestyle of retirement that too many people accept.

A quote I use relatively often to people I speak with, is that age is but a number; life is what you make it.  As a person in his mid-20's, I am clearly wet behind the ears on this topic, but logic steers me in that direction. If you can avoid illness and injury, and keep rolling with the punches, there should not be a reason you can't ward off your meeting with St. Peter a little longer than expected.

              So now that it is 2013, New Years resolutions in place, but slowing to a halt; keep that resolution at the gym a little longer, try to run a 5k, join a zumba class, go for a walk with your significant other. Studies show that a half an hour of activity a day cannot only increase your lifespan, but your health benefits sky rocket. It is all about determination and dedication, change, and focus. 

             Life is for the living my friends, cheers!

  

             -The Fickle Financier
              Commercial Lending for the Entrepreneur

Another one bites the dust

As anyone knows in sales, losing a sale is hard.

There was a client I had been corresponding with over the last month about getting some financing for his software company. Things seemed to be going well, but communication wasn't there. After weeks of slow correspondence, my skepticism was increasing.

Ready to close the deal after a few positive emails, a conference call was arranged for today. After discussing terms, and explaining how things would work with financing his business, the clouds parted, and it poured down on the Macy's Day Parade.

Our concepts of the deal were in different countries, and we ended the call with a hope to touch bases soon and get something that will fit his needs in the near future.

Well, where do you go from here? Your head may be in the gutter, but one has to remember that it is only one deal.

On average, for every five deals, four are bound to fall through. Keep your head up, and things will persevere. When trying to find deals, or make sales, you have to stay hungry, and stay fresh. The book outliers talks about becoming the best at something takes 10,000 hours, so keep trying.


So the deal of the day fell through, and I changed my heading for today. My day then went to contacting my brokers and contacts, trying to probe for new business. By the end of the day, I had spoken to three new potential clients, and am arranging for conference calls this coming week.

Just another example of persevering through tough times.


During the day a quote came to to mind:

"The Flurries of Defeat are Transcended by the Warmth of Success"

It came to mind, because I made it :)


Anyways, have a great weekend readers.

Live Long and Factor