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
Delve into the opinionated and open view of a Mid-20's credit lender. Working with a group of entrepreneurs to help make freeing up capital easier than any traditional bank loan. His objective is simple: observe, report, and find the humor in everyday working life. Whether the topic is talking about customers, prospects, or the headline on an online news site. This blog is bound to captivate and educate.
Showing posts with label annual return. Show all posts
Showing posts with label annual return. Show all posts
Friday, January 4, 2013
Monday, November 12, 2012
Invoice Discounting with Lenders Commercial Finance
How does Invoice Discounting with Lenders Commercial Finance differ from other business financing arrangements?
If you are a small or mid-market business (SMB) with B2B trade A/R you can use your assets to qualify with LCF. You can generate funding now to grow your business, pay down other loans or obligations, and to take advantage of new business opportunities.
Unlike traditional bank financing (where the focus is on clearing very specific financial hurdles), the focus with Invoice Discounting is the strength of your business model and the creditworthiness of your buyers.
Unlike traditional accounts receivable factoring where the factor takes over your accounts receivable, with Invoice Discounting by Lenders Commercial Finance you remain in control of your customer relationships.
How does Invoice Discounting work?
Once we establish an “Invoice Discounting Line Of Credit” for your company we partner with you in establishing Invoice Discounting Limits for each of your buyers. You submit the invoices you wish to finance via our secure internet-based invoice management system. Invoices representing goods that have been delivered or work that has been completed are funded within 24 hours by wire to your account.
How much do I receive for my discounted invoices?
We typically advance 90% of the net invoice amount up front and the balance when the invoice is collected.
Do I have to discount all my invoices?
No. We want to give you as much flexibility as possible in managing your cash flow. Not all buyers need to be discounted. You can hold invoices on buyers approved for discounting up to 10 days after delivery of goods (or work completion).
Can I payoff discounted invoices before they are collected?
Yes. You can “buy back” all or any part of your discounted invoices at any time and for any reason.
Is it expensive to discount my invoices?
We take a normal trade discount when you receive funding (typically 1% for each 10 days on original credit terms). Invoices that pay beyond terms are charged a convenient daily rate. The cost is higher than with bank financing but is in line with industry accepted trade discounts and discounts paid on credit card transactions.
Are charges based on the total invoice value or on the amount advanced?
With Lenders Commercial Finance all charges are based on the actual amount advanced to you. Other than pass-through wiring fees, there are no hidden fees or add-on costs as with most other financing programs.
Who is a good candidate for a Lenders Commercial Finance line of credit?If you are a small or mid-market business (SMB) with B2B trade A/R you can use your assets to qualify with LCF. You can generate funding now to grow your business, pay down other loans or obligations, and to take advantage of new business opportunities.
Friday, November 9, 2012
New Mailing Piece
Looking for asset-based lending for the Entrepreneurial spirit?
Subscribe to our mailing list, to find out how we can assist to turn on your cash flow
Make sure to use Mail Chimp for your online Marketing, you'll go bananas.
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Monday, November 5, 2012
The Factoring "Lock Box"
As the eyes and ears for a Factoring/Financing company, it is interesting to be involved and surrounded by new terminology, as it is in any industry.
My quandary today was, when involved in a conference call, describing a factoring "lock box" through the financing bank.
Here was the dilemma:
This certain company is working on a contract with us involving buying their accounts receivable. The clients were worried that their customers would know they would be going through a secondary finance company, that is fronting them money.
Here is where I would like to interject. Factoring happens to be one of the oldest and most basic forms of getting financing outside of a bank. It has been used for centuries, if it were not for factoring, there would not be clothing on your back, because that is how the garment industries were started. It is a widely known, and widely used option to small and large business owners. Try to find an industry that is retail or sells a good that does not use some sort of commercial financing or factoring. So in summation to my soap box rant, there should not be any worries about someone knowing that you have a factor buying your receivables.
Back to the story...
As we were in the midst of this conference call, my superior was trying to explain this fraud deterring system called a "lock box." If you are in the industry, you would know that one of the 4 most common forms of fraud that is committed is when a client does not submit, or notify the factoring company of an invoice that the creditor had already purchased.
My superior did an excellent job to avoiding the "F" word, (keep your mind out of the gutter, I mean fraud,) and told them how that it is merely a process to show verification to us and the bank that your checks are coming through and that the money you had promised is not being lost in translation.
To put it shortly, a "lock box," is a system that all checks are placed into, a photo is taken, and so that all parties involved can see what and where money is being handled, and sent to, as a safety precaution for the money that is being loaned.
I would advise doing a google search and finding websites such as:
http://www.investopedia.com/
or
http://money.cnn.com/services/glossary/a.html
to learn some new vocabulary, and find a new word of the day.
Factor ya later!
http://www.lenderscf.com
Asset-Based Loans to Grow By
My quandary today was, when involved in a conference call, describing a factoring "lock box" through the financing bank.
Here was the dilemma:
This certain company is working on a contract with us involving buying their accounts receivable. The clients were worried that their customers would know they would be going through a secondary finance company, that is fronting them money.
Here is where I would like to interject. Factoring happens to be one of the oldest and most basic forms of getting financing outside of a bank. It has been used for centuries, if it were not for factoring, there would not be clothing on your back, because that is how the garment industries were started. It is a widely known, and widely used option to small and large business owners. Try to find an industry that is retail or sells a good that does not use some sort of commercial financing or factoring. So in summation to my soap box rant, there should not be any worries about someone knowing that you have a factor buying your receivables.
Back to the story...
As we were in the midst of this conference call, my superior was trying to explain this fraud deterring system called a "lock box." If you are in the industry, you would know that one of the 4 most common forms of fraud that is committed is when a client does not submit, or notify the factoring company of an invoice that the creditor had already purchased.
My superior did an excellent job to avoiding the "F" word, (keep your mind out of the gutter, I mean fraud,) and told them how that it is merely a process to show verification to us and the bank that your checks are coming through and that the money you had promised is not being lost in translation.
To put it shortly, a "lock box," is a system that all checks are placed into, a photo is taken, and so that all parties involved can see what and where money is being handled, and sent to, as a safety precaution for the money that is being loaned.
I would advise doing a google search and finding websites such as:
http://www.investopedia.com/
or
http://money.cnn.com/services/glossary/a.html
to learn some new vocabulary, and find a new word of the day.
Factor ya later!
http://www.lenderscf.com
Asset-Based Loans to Grow By
Talking about, thinking about, and understanding the life of a hybrid Finance/Factoring Company
This blog will let people understand and begin to comprehend the other side of financing and factoring, where you are dealing with real people, and not just a bank.
A little about our company, and the men that started it:
Steve Tarpley and Ken Wilkens have started three successful small businesses over the last 21 years. They founded NEWCAL Industries in 1991, and grew it into one of the top ten office equipment dealers in the nation. In 2008 NEWCAL was acquired by one of the world's largest office equipment manufacturers.
Steve and Ken understand small business - they are intimately familiar with both the joys and challenges of building and managing a successful business. There were many stages along their path to success that required creative ways to fund growth.
Discounting their commercial invoices was one of the tools they utilized while building their businesses. It helped them hit some of their major milestones. They formed Lenders Commercial Finance to help other small and emerging California businesses fund expansions & growth, bringing Cal McGinnis on board to run their day to day operations. Cal has over 30 years of experience working with small businesses; both as a commercial banker and as a trade credit specialist.
You too can take advantage of this important tool to unlock the cash flow tied up in your accounts receivable. Invoice discounting with LCF works much like an accounts receivable “payment-in-kind” bank line of credit. Collections pay down your line and new invoices allow you to draw upon your line. Our goals are to help you obtain the working capital you need, when you need it.
http://www.lenderscf.com
A little about our company, and the men that started it:
Steve Tarpley and Ken Wilkens have started three successful small businesses over the last 21 years. They founded NEWCAL Industries in 1991, and grew it into one of the top ten office equipment dealers in the nation. In 2008 NEWCAL was acquired by one of the world's largest office equipment manufacturers.
Steve and Ken understand small business - they are intimately familiar with both the joys and challenges of building and managing a successful business. There were many stages along their path to success that required creative ways to fund growth.
Discounting their commercial invoices was one of the tools they utilized while building their businesses. It helped them hit some of their major milestones. They formed Lenders Commercial Finance to help other small and emerging California businesses fund expansions & growth, bringing Cal McGinnis on board to run their day to day operations. Cal has over 30 years of experience working with small businesses; both as a commercial banker and as a trade credit specialist.
You too can take advantage of this important tool to unlock the cash flow tied up in your accounts receivable. Invoice discounting with LCF works much like an accounts receivable “payment-in-kind” bank line of credit. Collections pay down your line and new invoices allow you to draw upon your line. Our goals are to help you obtain the working capital you need, when you need it.
http://www.lenderscf.com
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