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!

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

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

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

Fickle Facebook?

Just letting our viewers know that we have joined the Social Media craze, and threw up a simple facebook fan site. If you like what I'm writing, or just want to drop a line. Stop by at: http://www.facebook.com/LendersCommercialFinance

Live Long and Factor!

-Mike

Your helping hand in small business loans

Side Notes and Advertising

Asides from being financiers, we share some odd talents and hobbies around the office.

Some of our biggest hobbies are as follows:

Cal: Has managed businesses with annual turnover in excess of $25 million and he has led sales teams of up to 15 producers across multiple states. He has been president of a thrift & loan company and he has started two commercial finance businesses de novo. One of Cal's favorite pastimes when he is not making financial magic happen, is that he is a self-proclaimed "foodie," and loves exploring the depths of the city for his next dining excursion.

Ken: A native New Yorker, Ken has lived in the Bay Area for over 20 years now. Asides from making a hobby of starting successful businesses with business partner, Steve, he has a few other mainstays that keep him busy. An avid wine aficionado, he can be found tasting many of Napa Valley's finest Cabernet Sauvignons. Ken and Steve are also licensed pilots, and enjoy taking their prized Socata TBM 700 through the skylines.

Steve: A born salesman, Steve is the voice on the phone. Ken has quoted him as a pure natural, and the best at what he does. The man is a true intellect. Not only does his collection of literature captivate, but he possesses a wealth of knowledge. Steve's true passion lies on the asphalt. You can find him racing his Ford GT Xtreme at tracks like Laguna Seca, or working with his race team, SNT Motorsports

Mike: Your trusted and loyal scribe, Mike was born in "Amish Country," Lancaster Pennsylvania. After receiving his BS in Marketing, from Millersville University, he took to working in Logistics in New Jersey. While this sounds like a cookie cutter story, it wilted like a flower in winter. A dedicated musician, artist, and antique advocate, Mike is multi-facted. Many summers were spent exploring the West Coast of the states, and finally made the move to sunny California in mid 2012. Now working at Lenders Commercial Finance, he could not be more excited to take the financial 'bull by the horns' at LCF.






After an enjoyable meeting, I wanted to just say, as a musician, check out Mono Case

Their Products are sturdy, reliable, gorgeous to look at, and impossible to be disappointed with.

Finding Capital

Finding Capital

Understanding Asset-Based Lending

For businesses seeking working capital to run their operations effectively and to finance growth, asset-based lending may be an excellent solution.

In its simplest form, asset0based lending involved a loan or line of credit secured by business assets under which the financial institution will advance funds based on a formula. The formula is usually a percentage of the current value of the  eligible assets. The assets usually consist of the borrower's accounts receivable and inventory, but sometimes other assets may be used. The advance percentage will depend on the assets being pledged. For accounts receivable and inventory, the percentage will typically range between 75 to 85 percent and 25 to 60 percent, respectively, and each is subject to certain eligibility criteria. A lender will usually conduct periodic audits to determine the  current value and eligibility of the assets. In addition, borrowers typically are required to provide a lender with various reports, such as accounts receivable agings and inventory valuations.

 Asset-based lending typically provides a low interest rate and favorable repayment terms. For the most part, asset-based lending is typically structured as a revolving line of credit that businesses can draw upon when needed, allowing them to avoid making fixed payments of principal and interest and incurring unnecessary interest. Because of the nature of asset-based lending, business usually use such loans for day-to-day cash flow needs rather than for purchases with a set dollar amount, such as equipment or other property.

It is important to bear in mind that a business must maintain the value and eligibility of each asset to ensure that it remains available for financing under the advance formula. For example, in the case of accounts receivable, the receivables in an account which remain unpaid after a certain period become ineligible for financing.

"Borrowers also need to make sure they are getting the maximum amount of advance they can get on the asset," says Barry Sloane, CEO of Newtek, a company that provides business services to small and medium-sized companies throughout the United States. "They should be aware of market rates or consult with an a experienced adviser."

Most small or medium-sized businesses can benefit from asset-based lending as long as they have appropriate assets to secure the loan or line of credit. Before approaching al lending institution, business should be prepared to provide two to three years of financial statement as well as business projections for the next tow to three years. It is recommended that a business also hire legal counsel with experience in asset- based lending to assist in negotiating the terms and structure of the transaction. Obtaining financing typically takes about 45 to 60 days, so businesses should apply to their financial institution as soon as they know they are going to need it.

Aset-based lending can be an effective tool for a growing business.

"The most important aspects for the borrower are negotiating the advance and the interest rates," he says. "OTher than that, the most important thing is making sure the asset is not impaired."

This article was supplied by City National Bank

Be sure to ask us about your Accounts Receivable Financing