Minority-owned businesses may have the ability to bid on contracts which other businesses may not have. In large part, this is because of the Minority Business Development Agency which encourages states, and municipalities to hire minority businesses to complete projects on their behalf. However, as a minority-owned business, you still need the financial capacity to allow you to make these bids. Minority Businesses and Banking ChallengesWhen you know you will be bidding on a contract, the first thing you do is ensure you have the staffing and materials you will need to complete the terms of the contract. Should a review show you will need additional staffing and supplies, you may then be forced to seek out capital to ensure you can successfully complete the contract should you win the bid. This is the time when small and mid-sized business owners often turn to their banking relationships. However, a recent article in the New York Times shows that minority business owners often face many hurdles when dealing with banks. In fact, minority businesses often find it impossible to develop long-term banking relationships. This leaves many facing unusual challenges when bidding on contracts, even when those contracts mean a stronger business. When a minority business is bidding on contracts, especially a government contract, there are numerous hurdles to overcome including showing how you are going to fulfill the terms of the contract. Many businesses are asked to provide guarantees, which often are not available for minority businesses. Therefore, working with a company like Capstone has many advantages whether you are bidding on a contract, or you have recently been awarded a contract. Discover the Capstone DifferenceAt Capstone, we have a process that allows us to work with both internal processes and outside private partners to help you gain access to much-needed capital. When you have landed a minority contract, we understand it could be 90 to 120 days or more before you see payment for an invoice you have issued. This is why we will help you customize a plan which works best for your company. These plans may include:
Finding the Right Balance for Your BusinessCapstone believes in relationship building. We know each business has different needs for cash flow. We also understand some business owners require capital to maintain their obligations, while others have sufficient cash to meet those obligations but wish to have access to additional sources of capital in order to invest in the growth of their business. This is why we take the time to understand several things before we develop a plan that suits your business. Some of our discussions will include:
Once we have discussed these matters with you, we will develop a comprehensive financing plan that is designed to help you meet your goals and grow your business. Not only can we help you meet your cash flow finances, in many cases, we can include long and short term financing options which will help you make long-term plans to ensure you are able to meet the goals you set for yourself and your business. Whether you are considering bidding on a new contract, or you have been awarded a minority contract and now need the capital to fulfill the terms of your contact, contact Capstone today at (212) 755-3636 and see what a difference having a strong relationship with a financing partner can make in your business. The post Prepare to Put Minority Contract Opportunities to Work for Your Business appeared first on Capstone Capital Group. via Tumblr Prepare to Put Minority Contract Opportunities to Work for Your Business
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During 2014, more than $3,000 billion dollars changed hands between businesses and companies who provide factoring. A 2019 study recently published by Reports Monitor (RM) determined that by 2026, more than $4,600 billion will be handled in this manner. The data in this study shows other information which is fascinating when you consider the past and future potential for factoring including the geographical areas where businesses use factoring. In fact, there are very few businesses that take advantage of this unique type of financing. Geographically, the following percentage of businesses use factoring:
Overall, this is a relatively small percentage of the businesses who could benefit from this type of financing. Use of and Reasoning For FactoringThis study also shows that nearly 79 percent of all factoring is done by small and medium-sized businesses. Despite the small percentages of businesses who rely on factoring, over the years, the largest growth rate use of factoring is within small and medium-sized businesses. These business owners often face the biggest challenge in getting more traditional financing and often have the most struggles with cash flow. This study goes on to talk about why factoring is so beneficial to these business entities in specific and have a significant impact on company growth. Some of these reasons include:
A Glimpse into the Global Factoring MarketMore than 65 percent of the global factoring market is in Europe. These markets skyrocketed during the recession and are now showing signs of slowing. In the United States, factoring declined seriously through 2018, a result of fraudulent activities which many were slow to react to. Asia and other emerging markets will likely continue to see an increase in the use of factoring as more business owners get engaged in growth in these markets. What is particularly fascinating is the number of companies that offer factoring services in various regions. Keep in mind, in many global markets, factoring is dominated by big banks. Here’s how the number of factors looks globally:
With tighter banking regulations, better security, and blockchain technology, the growth potential exists in the factoring market. How the Current Markets May Impact FactoringBusiness owners who have been shut down during the COVID19 pandemic are only beginning the reopening process. Many of them are facing unprecedented challenges including operating at a smaller capacity. Because there is every reason to believe this pandemic will put downward pressure on demand, more business owners will be searching for creative ways to keep their doors open and continue to grow. Factoring may provide that opportunity. Currently, none of us has a magic ball which will tell us how business owners will survive the current downturn in consumer demand. We also cannot determine what will happen to lending restrictions once demand picks up. What we do know is that business owners will all have overhead costs to pay including salaries, taxes, and will need to purchase materials for their business. Factoring growth in the United States has been much slower than other corners of the globe but during the upcoming period where businesses may face unprecedented challenges, this could provide an opportunity for factoring in the United States to exceed growth expectations.
The post 2020 Global Factoring Report appeared first on Capstone Capital Group. via Blogger 2020 Global Factoring Report During 2014, more than $3,000 billion dollars changed hands between businesses and companies who provide factoring. A 2019 study recently published by Reports Monitor (RM) determined that by 2026, more than $4,600 billion will be handled in this manner. The data in this study shows other information which is fascinating when you consider the past and future potential for factoring including the geographical areas where businesses use factoring. In fact, there are very few businesses that take advantage of this unique type of financing. Geographically, the following percentage of businesses use factoring:
Overall, this is a relatively small percentage of the businesses who could benefit from this type of financing. Use of and Reasoning For FactoringThis study also shows that nearly 79 percent of all factoring is done by small and medium-sized businesses. Despite the small percentages of businesses who rely on factoring, over the years, the largest growth rate use of factoring is within small and medium-sized businesses. These business owners often face the biggest challenge in getting more traditional financing and often have the most struggles with cash flow. This study goes on to talk about why factoring is so beneficial to these business entities in specific and have a significant impact on company growth. Some of these reasons include:
A Glimpse into the Global Factoring MarketMore than 65 percent of the global factoring market is in Europe. These markets skyrocketed during the recession and are now showing signs of slowing. In the United States, factoring declined seriously through 2018, a result of fraudulent activities which many were slow to react to. Asia and other emerging markets will likely continue to see an increase in the use of factoring as more business owners get engaged in growth in these markets. What is particularly fascinating is the number of companies that offer factoring services in various regions. Keep in mind, in many global markets, factoring is dominated by big banks. Here’s how the number of factors looks globally:
With tighter banking regulations, better security, and blockchain technology, the growth potential exists in the factoring market. How the Current Markets May Impact FactoringBusiness owners who have been shut down during the COVID19 pandemic are only beginning the reopening process. Many of them are facing unprecedented challenges including operating at a smaller capacity. Because there is every reason to believe this pandemic will put downward pressure on demand, more business owners will be searching for creative ways to keep their doors open and continue to grow. Factoring may provide that opportunity. Currently, none of us has a magic ball which will tell us how business owners will survive the current downturn in consumer demand. We also cannot determine what will happen to lending restrictions once demand picks up. What we do know is that business owners will all have overhead costs to pay including salaries, taxes, and will need to purchase materials for their business. Factoring growth in the United States has been much slower than other corners of the globe but during the upcoming period where businesses may face unprecedented challenges, this could provide an opportunity for factoring in the United States to exceed growth expectations. The post 2020 Global Factoring Report appeared first on Capstone Capital Group. via Tumblr 2020 Global Factoring Report Our economy has taken a real beating since early March when many states closed down non-essential businesses. This has resulted in numerous small and mid-sized business owners to scale down their operations, or in some cases, to scale up their operations because other businesses were unable to keep up with the current demand. Defining Essential BusinessesEach state has determined individually what qualifies as an essential business during this pandemic. In many cases, these jobs were defined as anyone who provides food, utility services, medical care, or law enforcement services. Some were more broadly defined, leaving many business owners confused, or operating under new guidelines including having a process in place for keeping employees, customers, and vendors safe. These involved investments of different amounts depending on the industry. CARES Act Loans Not Distributed to Many Business OwnersThe CARES Act which was signed into law by President Trump offered businesses with up to 500 employees (defined as a small business) an opportunity to participate in the Payroll Protection Plan (PPP). This plan provided short-term loans for small businesses where they could recover up to six months of expenses provided they rehired their employees during the pandemic. If a company kept their employees on the payroll, the loan would be forgiven (i.e. turn into a grant). However, there have been numerous complaints about this program including:
The overall result of PPP has been disappointing for many small business owners because while there were significantly reduced requirements, many of the larger banks were able to approve loans more quickly than community banks and non-traditional lending institutions. This has left many business owners struggling with the funds needed to keep their businesses afloat during this challenging time. Options Available Outside PPPFor those business owners who were unsuccessful in applying for funding under PPP, there may seem to be very few options. However, since there are still construction projects going on, many mom and pop stores remain open, and many restaurants are operating, there is still a need to fund some of the most vulnerable businesses during this time. This leaves business owners facing the awkward decision of how to keep their bottom line in the black while we all adjust to what may be a “new” normal. Here are some of the options available to those business owners:
Why Invoice Factoring Makes SenseRather than attempt to get a new bank loan, which many acknowledge could be more challenging, using your future cash flow to fund increased demand for your products or services makes sense. Not only are you avoiding taking on new debt, but you will also be able to receive payment for those goods or services in a timelier manner, a lot faster than the normal 30 – 90-day cycle usually associated with accounts payable. If you are one of the thousands of small or medium-sized business owners who are facing a cash crunch as your company prepares to reopen following a shutdown, or if you have been open all along but you need additional capital to meet demand, contact a highly-trained representative at Capstone Trade today at (212) 755-3636 and let us help you design a customized financing package designed to meet your specific needs.
The post Emergency Funding Sources for Businesses during a Pandemic appeared first on Capstone Capital Group. via Blogger Emergency Funding Sources for Businesses during a Pandemic Our economy has taken a real beating since early March when many states closed down non-essential businesses. This has resulted in numerous small and mid-sized business owners to scale down their operations, or in some cases, to scale up their operations because other businesses were unable to keep up with the current demand. Defining Essential BusinessesEach state has determined individually what qualifies as an essential business during this pandemic. In many cases, these jobs were defined as anyone who provides food, utility services, medical care, or law enforcement services. Some were more broadly defined, leaving many business owners confused, or operating under new guidelines including having a process in place for keeping employees, customers, and vendors safe. These involved investments of different amounts depending on the industry. CARES Act Loans Not Distributed to Many Business OwnersThe CARES Act which was signed into law by President Trump offered businesses with up to 500 employees (defined as a small business) an opportunity to participate in the Payroll Protection Plan (PPP). This plan provided short-term loans for small businesses where they could recover up to six months of expenses provided they rehired their employees during the pandemic. If a company kept their employees on the payroll, the loan would be forgiven (i.e. turn into a grant). However, there have been numerous complaints about this program including:
The overall result of PPP has been disappointing for many small business owners because while there were significantly reduced requirements, many of the larger banks were able to approve loans more quickly than community banks and non-traditional lending institutions. This has left many business owners struggling with the funds needed to keep their businesses afloat during this challenging time. Options Available Outside PPPFor those business owners who were unsuccessful in applying for funding under PPP, there may seem to be very few options. However, since there are still construction projects going on, many mom and pop stores remain open, and many restaurants are operating, there is still a need to fund some of the most vulnerable businesses during this time. This leaves business owners facing the awkward decision of how to keep their bottom line in the black while we all adjust to what may be a “new” normal. Here are some of the options available to those business owners:
Why Invoice Factoring Makes SenseRather than attempt to get a new bank loan, which many acknowledge could be more challenging, using your future cash flow to fund increased demand for your products or services makes sense. Not only are you avoiding taking on new debt, but you will also be able to receive payment for those goods or services in a timelier manner, a lot faster than the normal 30 – 90-day cycle usually associated with accounts payable. If you are one of the thousands of small or medium-sized business owners who are facing a cash crunch as your company prepares to reopen following a shutdown, or if you have been open all along but you need additional capital to meet demand, contact a highly-trained representative at Capstone Trade today at (212) 755-3636 and let us help you design a customized financing package designed to meet your specific needs. The post Emergency Funding Sources for Businesses during a Pandemic appeared first on Capstone Capital Group. via Tumblr Emergency Funding Sources for Businesses during a Pandemic How Invoice Factoring Can Strengthen Your Business for GrowthThe economic challenges of the Corona Virus have left a cash flow shortfall for many firms. Even in today’s high growth economy, the cards are still stacked against many small firms. With an impaired balance sheet as a result of your equity being eaten away by tighter operating margins, the rising cost of materials and labor, and the inability to pass on the additional costs means that bank financing is almost impossible to get. If you are lucky enough to have a bank line, the terms and conditions may have changed as new regulations have the potential to shift the profile for your relationship with the bank from a strong personal relationship into a loan that is categorized as ‘risky,’ thereby requiring the bank to increase its capital requirements. The ability to find and obtain needed financing to strengthen and grow businesses remains a true challenge. Cash flow management can either make or break a small business. Without proper cash flow management, you will never be in a position to grow your balance sheet and change the lending profile of your company from the bank’s perspective. The demands within the construction industry seem to be constantly working against you. As more contractors and subcontractors bidding on the same jobs, to remain competitive, you must offer extended payment terms and earn less on the jobs that you successfully bid. Meanwhile, as the business owner, you must ensure you have the cash flow to make payroll, pay benefits, manage and collect accounts receivable, manage and pay suppliers, and find work to backlog. These demands create an almost perpetual cycle of cash flow deficiency for your business. To add insult to injury, a natural disaster such as the COVID-19 Virus can create a sharp decrease in work, and because of your constrained cash flow, you must pass on opportunities to increase your workload and backlog. Stretched Cash = Business RiskFirms across the nation face similar conditions each day in their businesses. Let’s take a look at Marc; Marc owns and operates a successful electrical firm supplying services to the City of New York, the Board of Education, and Mass Transit, to name a few clients. Working within the industry-standard practice of 90+ day payment terms was challenging enough. Then, COVID -19 hit. The demand for his company’s services dramatically decreased and an immediate reduction of work was the result. The delay in collecting accounts receivable, as a result of extended payment terms needed to gain the highly competitive business, was forcing the company to miss payroll and delay payment to its own suppliers, the lifeblood of the business. The residual impact of stretching inadequate cash flow leads to neglected bidding capacity. The company’s backlog of work was reduced from the typical six to 12 weeks to just two weeks. Realizing that stretching existing cash flow was no longer an option, the company approached local banks for financing help. Each one turned down the company’s loan applications but referred the company to alternative financing firms. Even those firms turned down the contractor due to strict credit conditions, balance sheet issues, and the existence of debt hangover and the company’s inability to meet other loan covenants. Taking Control & Keep Up with FactoringThere is a multitude of companies that provide invoice factoring or spot factoring to small businesses. This is an effective strategy to help companies obtain the funding they need when traditional sources, such as banks, and finance companies, are not available or willing to help. This invoice factoring strategy refers to the sale of only that portion of a company’s accounts receivable needed to meet its cash flow needs. In other words, the company sells its outstanding invoices for services the company has already provided, only if it needs the additional cash flow for operations. Companies are then able to sell a single invoice or a schedule of invoices in exchange for much-needed working capital. Those funds provide staying power until cash flow catches up with expenses. Invoice factors typically work with construction-related companies including electrical subcontractors, drywall subcontractors, mold remediation firms, and demolition companies. Meet Extended Payment Terms & Grow BusinessIn today’s competitive market place, the ability to offer extended terms is crucial to winning business with large firms. Many businesses shy away from offering extended terms on their accounts receivable to their customers because they cannot handle the cash flow burden that comes along with the offering of extended credit terms. However, larger customers expect extended credit terms and prefer to do business with those vendors that can provide them. Providing extended credit terms to customers ensures that the larger company is cash-flow positive and has lower costs of borrowing. Through invoice or spot factoring, your company will become a more valued supplier to your existing customer base and provide you with the potential to grow even more. With invoice factoring, the factoring firm waits to get paid while commercial firms get the working capital required to stay afloat while the accounts receivable matures. The cost of factoring is a percentage of the receivable, so astute small business owners will increase the cost of their goods to take into account the cost of factoring their invoices. This pricing strategy essentially transfers the cost of factoring to their customers and allows the small business to grow to the extent it can with its large customers. Repay Bank LoansIn addition to immediate cash flow needs, many small businesses also have debt hangovers from revolving credit facilities that have been termed out as a result of the COVID -19 and the change in their financial condition. Capstone Capital Group, LLC is adept at working and negotiating with banks and finance companies that are unable to extend more credit to their existing borrowers. By entering into Limited Subordination Agreements (LSA), the bank permits Capstone to purchase accounts receivable that would have otherwise been part of the bank’s collateral. This added liquidity ensures the business owner has sufficient working capital to operate with until their credit line is paid down. In many cases, as the business grows because of the use of the LSA, the bank or finance company is paid down quicker and at less cost to the business owner. This is accomplished through increased sales and overhead being allocated over more jobs. The range of cash flow solutions provided by Capstone includes accounts receivable management services, funds control, providing credit information on accounts, and in some cases, trade finance or purchase order financing. These firms can provide needed cash now without the bureaucracy of a traditional bank or finance company. Invoice factoring gives you cash as needed when you need it. Joseph F. Ingrassia is Managing Member of Capstone Capital Group, LLC, a factoring and trade finance firm that provides businesses with needed working capital through invoice factoring and custom purchase order financing solutions. Capstone Electrical Eng COVID19The post How to Strengthen Your Business for Growth In a post COVID -19 Environment appeared first on Capstone Capital Group. via Blogger How to Strengthen Your Business for Growth In a post COVID -19 Environment How Invoice Factoring Can Strengthen Your Business for GrowthThe economic challenges of the Corona Virus have left a cash flow shortfall for many firms. Even in today’s high growth economy, the cards are still stacked against many small firms. With an impaired balance sheet as a result of your equity being eaten away by tighter operating margins, the rising cost of materials and labor, and the inability to pass on the additional costs means that bank financing is almost impossible to get. If you are lucky enough to have a bank line, the terms and conditions may have changed as new regulations have the potential to shift the profile for your relationship with the bank from a strong personal relationship into a loan that is categorized as ‘risky,’ thereby requiring the bank to increase its capital requirements. The ability to find and obtain needed financing to strengthen and grow businesses remains a true challenge. Cash flow management can either make or break a small business. Without proper cash flow management, you will never be in a position to grow your balance sheet and change the lending profile of your company from the bank’s perspective. The demands within the construction industry seem to be constantly working against you. As more contractors and subcontractors bidding on the same jobs, to remain competitive, you must offer extended payment terms and earn less on the jobs that you successfully bid. Meanwhile, as the business owner, you must ensure you have the cash flow to make payroll, pay benefits, manage and collect accounts receivable, manage and pay suppliers, and find work to backlog. These demands create an almost perpetual cycle of cash flow deficiency for your business. To add insult to injury, a natural disaster such as the COVID-19 Virus can create a sharp decrease in work, and because of your constrained cash flow, you must pass on opportunities to increase your workload and backlog. Stretched Cash = Business RiskFirms across the nation face similar conditions each day in their businesses. Let’s take a look at Marc; Marc owns and operates a successful electrical firm supplying services to the City of New York, the Board of Education, and Mass Transit, to name a few clients. Working within the industry-standard practice of 90+ day payment terms was challenging enough. Then, COVID -19 hit. The demand for his company’s services dramatically decreased and an immediate reduction of work was the result. The delay in collecting accounts receivable, as a result of extended payment terms needed to gain the highly competitive business, was forcing the company to miss payroll and delay payment to its own suppliers, the lifeblood of the business. The residual impact of stretching inadequate cash flow leads to neglected bidding capacity. The company’s backlog of work was reduced from the typical six to 12 weeks to just two weeks. Realizing that stretching existing cash flow was no longer an option, the company approached local banks for financing help. Each one turned down the company’s loan applications but referred the company to alternative financing firms. Even those firms turned down the contractor due to strict credit conditions, balance sheet issues, and the existence of debt hangover and the company’s inability to meet other loan covenants. Taking Control & Keep Up with FactoringThere is a multitude of companies that provide invoice factoring or spot factoring to small businesses. This is an effective strategy to help companies obtain the funding they need when traditional sources, such as banks, and finance companies, are not available or willing to help. This invoice factoring strategy refers to the sale of only that portion of a company’s accounts receivable needed to meet its cash flow needs. In other words, the company sells its outstanding invoices for services the company has already provided, only if it needs the additional cash flow for operations. Companies are then able to sell a single invoice or a schedule of invoices in exchange for much-needed working capital. Those funds provide staying power until cash flow catches up with expenses. Invoice factors typically work with construction-related companies including electrical subcontractors, drywall subcontractors, mold remediation firms, and demolition companies. Meet Extended Payment Terms & Grow BusinessIn today’s competitive market place, the ability to offer extended terms is crucial to winning business with large firms. Many businesses shy away from offering extended terms on their accounts receivable to their customers because they cannot handle the cash flow burden that comes along with the offering of extended credit terms. However, larger customers expect extended credit terms and prefer to do business with those vendors that can provide them. Providing extended credit terms to customers ensures that the larger company is cash-flow positive and has lower costs of borrowing. Through invoice or spot factoring, your company will become a more valued supplier to your existing customer base and provide you with the potential to grow even more. With invoice factoring, the factoring firm waits to get paid while commercial firms get the working capital required to stay afloat while the accounts receivable matures. The cost of factoring is a percentage of the receivable, so astute small business owners will increase the cost of their goods to take into account the cost of factoring their invoices. This pricing strategy essentially transfers the cost of factoring to their customers and allows the small business to grow to the extent it can with its large customers. Repay Bank LoansIn addition to immediate cash flow needs, many small businesses also have debt hangovers from revolving credit facilities that have been termed out as a result of the COVID -19 and the change in their financial condition. Capstone Capital Group, LLC is adept at working and negotiating with banks and finance companies that are unable to extend more credit to their existing borrowers. By entering into Limited Subordination Agreements (LSA), the bank permits Capstone to purchase accounts receivable that would have otherwise been part of the bank’s collateral. This added liquidity ensures the business owner has sufficient working capital to operate with until their credit line is paid down. In many cases, as the business grows because of the use of the LSA, the bank or finance company is paid down quicker and at less cost to the business owner. This is accomplished through increased sales and overhead being allocated over more jobs. The range of cash flow solutions provided by Capstone includes accounts receivable management services, funds control, providing credit information on accounts, and in some cases, trade finance or purchase order financing. These firms can provide needed cash now without the bureaucracy of a traditional bank or finance company. Invoice factoring gives you cash as needed when you need it. Joseph F. Ingrassia is Managing Member of Capstone Capital Group, LLC, a factoring and trade finance firm that provides businesses with needed working capital through invoice factoring and custom purchase order financing solutions. Capstone Electrical Eng COVID19The post How to Strengthen Your Business for Growth In a post COVID -19 Environment appeared first on Capstone Capital Group. via Tumblr How to Strengthen Your Business for Growth In a post COVID -19 Environment Throughout 2019, we experienced a tremendous uptick in the economy resulting in low unemployment, low inflation, and increased household spending. Overall, one would believe this would lead to significant growth across a number of sectors of the economy. However, there were other forces which when combined, presented some challenges for some small and mid-sized business owners. Trade Wars with China Threatening Economic GrowthPerhaps one of the more challenging issues which besieged business in the United States was the threat of reduced trade with China. As many import and export businesses are fully aware, this trade helps us keep costs lower for consumers. Higher tariffs imposed on Chinese goods meant higher costs to consumers and also presented some new supply challenges. Fortunately, the back and forth eased up towards the end of 2019, helped farmers and also created new demand for import and export business owners resulting in higher demand, and therefore, the need for additional funding. Tech Business Growth Continues Upwards Trend but…While tech businesses continued their upward trajectory, there was plenty of controversies. There were record fines imposed on some businesses, while others were subject to hacking, and other problems. Privacy issues, trust issues, and other problems continue to plague this industry while the demand for more technology solutions continues. The Retail Apocalypse ContinuesWhile retail sales have shown an increase, this is not well-reflected in brick-and-mortar establishments. Retail giants are continuing to cut their locations while giants like Amazon have continued to show improved signs of strength since 2008. Currently, this is good news for those who are in the import/export business but maybe more problematic for distributors who depend on retail giants for their revenue. Small Business Lending in 2019The Small Business Administration (SBA) reported a great year with small business loan volume increasing slightly over 2018 totals. As of October of 2019, the SBA reported there had been more than 60,000 loans offered to small businesses across the United States. While this number showed signs of increased lending, there are a total of 30 million small businesses across the United States meaning there are potentially several business owners who could not secure SBA loans or did not have access to other forms of lending. Economic Uncertainty Seems to Have IncreasedPerhaps one of the most unusual business stories released during 2019 was interest rate changes. The Federal Reserve cut interest rates three times during 2019 when they had originally been on the increase. While many believed that lower interest rates would help spur more business lending, in some cases, banks were tightening their belts and making it harder for some businesses to obtain loans. The Usual Businesses Seem to be Left BehindUnfortunately, as with the trends found in 2018, some business owners were left behind even during a booming economy. A careful review of business loans showed the following businesses and sectors seem to be still trying to secure additional capital and have been having more problems than usual. In fact, 32 percent of all small business owners (the same as 2018) showed access to capital was their primary concern. Some of these businesses and sectors including:
At Capstone Capital Group, we understand the challenges business owners faced during 2019, as well as the challenges they are facing during 2020. This is why we remain committed to working with businesses to help them get the funding they need to help grow their businesses and have the capital on hand to take advantage of larger contracts. Please email us at [email protected] or call us at (212) 755-3636. One of our highly-trained representatives will work with you to find a funding solution that helps you reach your goals.
The post A look back at 2019 business growth in America appeared first on Capstone Capital Group. via Blogger A look back at 2019 business growth in America Throughout 2019, we experienced a tremendous uptick in the economy resulting in low unemployment, low inflation, and increased household spending. Overall, one would believe this would lead to significant growth across a number of sectors of the economy. However, there were other forces which when combined, presented some challenges for some small and mid-sized business owners. Trade Wars with China Threatening Economic GrowthPerhaps one of the more challenging issues which besieged business in the United States was the threat of reduced trade with China. As many import and export businesses are fully aware, this trade helps us keep costs lower for consumers. Higher tariffs imposed on Chinese goods meant higher costs to consumers and also presented some new supply challenges. Fortunately, the back and forth eased up towards the end of 2019, helped farmers and also created new demand for import and export business owners resulting in higher demand, and therefore, the need for additional funding. Tech Business Growth Continues Upwards Trend but…While tech businesses continued their upward trajectory, there was plenty of controversies. There were record fines imposed on some businesses, while others were subject to hacking, and other problems. Privacy issues, trust issues, and other problems continue to plague this industry while the demand for more technology solutions continues. The Retail Apocalypse ContinuesWhile retail sales have shown an increase, this is not well-reflected in brick-and-mortar establishments. Retail giants are continuing to cut their locations while giants like Amazon have continued to show improved signs of strength since 2008. Currently, this is good news for those who are in the import/export business but maybe more problematic for distributors who depend on retail giants for their revenue. Small Business Lending in 2019The Small Business Administration (SBA) reported a great year with small business loan volume increasing slightly over 2018 totals. As of October of 2019, the SBA reported there had been more than 60,000 loans offered to small businesses across the United States. While this number showed signs of increased lending, there are a total of 30 million small businesses across the United States meaning there are potentially several business owners who could not secure SBA loans or did not have access to other forms of lending. Economic Uncertainty Seems to Have IncreasedPerhaps one of the most unusual business stories released during 2019 was interest rate changes. The Federal Reserve cut interest rates three times during 2019 when they had originally been on the increase. While many believed that lower interest rates would help spur more business lending, in some cases, banks were tightening their belts and making it harder for some businesses to obtain loans. The Usual Businesses Seem to be Left BehindUnfortunately, as with the trends found in 2018, some business owners were left behind even during a booming economy. A careful review of business loans showed the following businesses and sectors seem to be still trying to secure additional capital and have been having more problems than usual. In fact, 32 percent of all small business owners (the same as 2018) showed access to capital was their primary concern. Some of these businesses and sectors including:
At Capstone Capital Group, we understand the challenges business owners faced during 2019, as well as the challenges they are facing during 2020. This is why we remain committed to working with businesses to help them get the funding they need to help grow their businesses and have the capital on hand to take advantage of larger contracts. Please email us at [email protected] or call us at (212) 755-3636. One of our highly-trained representatives will work with you to find a funding solution that helps you reach your goals. The post A look back at 2019 business growth in America appeared first on Capstone Capital Group. via Tumblr A look back at 2019 business growth in America Most small and mid-sized business owners know someone who offers financing options. When you are running a business, there are occasional times when keeping up with cash flow needs feels like an impossible hurdle to overcome. Companies understand how long it takes to apply for and gain approval for a traditional bank loan. Since your lines of credit are often needed to ensure you have materials for future orders, what other options do you have to get the cash you need quickly? Factoring is the answer — invoice factoring is one of the easiest and fastest methods of getting a quick infusion of cash into your business. Tap Your Financing NetworkIf you are like most business owners, you either know someone who offers short-term financing, or you are working through a broker who handles short-term loans. If you are working with anyone who provides this type of financing, you should ask them about invoice factoring and how you can take advantage of it for your immediate needs. What Factoring Can AccomplishWhen you are facing a cash crunch because orders are fulfilled but unpaid, you may not know how to get the cash you need. Invoice factoring can help you meet your immediate cash needs without entering into debt you will have to repay later. First, you decide which invoice or invoices you want to factor. Then you or your financial broker have those invoices vetted by a factoring partner and within a few days, you have the cash you need to meet your obligations. The best thing about finding the right factoring partner is you retain a great deal of control over your accounts receivable. For example, if you decide to work with Capstone, you are not committed to factoring all of your invoices. You determine which invoices you want to use, we vet them, and we send you the agreed-upon amount upon approval. Yes, it is really that easy. You do not need to continue to attempt to run your business from job to job. Instead, you can take advantage of factoring options and accelerate your cash flow starting today. Please email us at [email protected] or call us at 347-410-9697 and let us help you create a customized plan that enables you to reach your full potential.
The post Making the Most of Your Finance Network With Invoice Factoring appeared first on Capstone Capital Group. via Blogger Making the Most of Your Finance Network With Invoice Factoring |
Capstone Capital Group, LLC
Capstone seeks to fund under-capitalized, competent businesses to sustain sales growth, preserve capital and ensure business goals are realized. |