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!