Wednesday, August 29, 2007

What's on Your Desk?

The last days of August are often slow in the deal world - seems all the funding sources and other deal makers are enjoying those last few days of summer at the beach.

That being said, I'm starting to feel the impact of the turmoil in the credit markets from these last few weeks. My phone is ringing more and my blog is seeing more hits from anxious borrowers.

Here's a partial look at what's on my desk...
  • We'll start with a success story. Just arranged a factoring facility for a company in the remote surveillance business. They were landing contracts with big name clients, but their balance sheet and short time in business didn't support a bank line of credit. They needed money fast - from start to finish, the funding solution was completed in less than a week. The CEO commented that the interest rates were below what he expected!

  • Was working with a prospect that wanted me to find them either a less expensive factoring facility or an asset based revolver secured by accounts receivable and inventory. In my due diligence process, I discovered a potential problem with past due payroll taxes. I've offered an introduction to Peter Stephan (who helped me write "Yeah, I'm the Taxman") who can advise them on how to resolve the tax problem.

  • I'm pre-screening a loan for a company who has reasonably strong cash flow but is challenged by a significant customer concentration issue and a lack of collateral either inside or outside the business. Wish me luck on this one.

  • I've written posts on how important it is to have a strong relationship with one's lender. I've been recommended to a prospective borrower seeking to borrow a large sum of money to fund a real estate acquisition. He told me that a loan officer at a bank which had previously loaned him the funds to acquire real estate declined this new financing opportunity while providing a reason that didn't make sense. He did not have a strong relationship with this banker. My own contact at the bank did a little digging and then admitted they had dropped the ball. Know your lender and build a real relationship.

  • I've recently been introduced to a company which provides homeland security solutions. Request #1 is to find them a lower cost factoring solution than they currently have. If their accounts receivable are reasonably clean, it shouldn't be too big a challenge to find them a more cost effective source of factoring. Request #2 is to create a vendor financing program so they can more easily sell their products to municipalities and other government agencies that often cannot pay in full for assets acquisitions. This could be a fun assignment.

As we head into the Labor Day weekend, hope your summer has been a great one.

And if you need help finding the right lender or telling your story the right way, read "Matchmaking for Business Loans" and give me a call!

Tags : cash flow , bank loan , factoring , accounts receivable , equipment leasing , municipal leasing , payroll taxes , vendor financing

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