How Trucking Companies Take Advantage of Invoice Factoring

One way a small business, including trucking companies, can secure financing relatively quickly is through invoice factoring. If there is certainty that money will be coming in because of outstanding invoices, a truck company owner is able to guarantee repayment. Invoices give a business leverage and inspire confidence among potential lenders. The business owner might have truck orders that have been delivered but still need to be paid, and is able to show these invoices and borrow against them.

The advantage of invoice factoring as a form of financing is that it can be secured quickly and there is visibility concerning repayment that is reassuring both to the borrower and to the lender. Outstanding invoices for 30, 60 or 90 days can be used when securing the loan. In addition to proving future income based on the invoices, a business can qualify for a loan if it has limited debt and clean credit. This is essential so the lender can feel sure that much of the money coming in will be going to pay off this loan rather than previous loans.

When considering this type of financing, it is important to pay attention to the requirements of a potential lender. Some require a minimum amount of invoice dollars due before extending a loan. If a payment isn’t made, it is possible that clients may be contacted for repayment, but this depends on the type of loan and lender.

The higher amount of money you have due according to invoices you can show, usually, barring debt and other issues, the more likely it is you can take advantage of invoice factoring to provide capital for your truck business. Another positive is if you have a number of steady clients who have a proven track record of repayment. If you feel confident that clients are reliable and will pay back in time, this method of financing may be right for your business.

One reason many businesses prefer to use invoice factoring is that it is a fast method of borrowing. If all of the paperwork is in order, a borrower can receive an answer in less than a business week. This method may cost more than a bank loan or a credit line, but short-term financing in general tends to be expensive, and borrowing against invoices is less expensive and complicated than many other methods.

 

If your trucking company has a clean financial record and a certain number of clients with well-established businesses and a record of consistent repayment, this form of financing may be right for your company.


Everything You Need To Know About Startup Business Loans

Startup business loans are not always easy to obtain. Many lenders simply don’t want to take on the kind of risks associated with a new business. Small Business Administration (SBA) loans can be used to help lenders qualify loans to small businesses as the government will guarantee a portion of the loans. However, just because a loan is guaranteed by the SBA does not automatically qualify a business for a loan with the lender.

Many lenders that participate in SBA loan guarantees maintain a preferred status. This means that the majority of businesses that they loan money to will pay back the loan. In other words, the lender did not have to rely on the SBA guarantee. By maintaining this preferred status, lenders will not have to get permission from the SBA in order to make loans. As you can see, your business can still be turned down even with the guarantee.

Lenders will have their own set of requirements to approve startup business loans. They will require a certain amount of collateral backing and may want a percentage of upfront cash injection from the business owner. Usually, this cannot be in the form of some other type of loan. If you were to get the money from family or friends, you will need to verify that it will not be paid back to those members for the duration of the loan. A business owner’s personal assets, such as a mortgage on a home, are acceptable forms of collateral.

A good credit rating is usually going to be required by a lender. All debts should be up-to-date for at least a year or two and there should be no recent history of defaults or foreclosures.

Another determining factor for lenders is the type of assets that a business will obtain. If these assets are easily liquidated in the event the business defaults, it will be easier to make the loan than for assets that depreciate quickly. A restaurant is a good example of a business having assets that could easily be sold and the value of those assets remain relatively stable. A computer equipment company would be an example of a business with assets that are not as desirable for lenders to loan against. This is not to say lenders never will loan to these types of businesses, but the decision will be harder for them to make.

Business owners should look at several financing options to try and get the best rates on their startup business loans. However, they will find that loans with guarantees will be easier to obtain, all things being equal.


Why You Should or Shouldn’t Be Using Small Business Credit Cards

If you are a small business owner, you are going to eventually be faced with a decision regarding the use of small business credit cards. Unless your cash flow situation is strong, you will probably want to limit the use of credit cards as much as possible. But there are simply too many situations in which not having access to quick credit via the use of cards will arise. If you are on a business trip and want to rent a car, you will find it very difficult to do without a credit card.

There are other benefits to having credit cards for your business use. Many card companies offer some protections for your business like insurance for your car rental. There may also be perks for mileage on airlines depending on the card being used. If you or someone in your business travels often, this can save money on travel expenses.

Some small business credit cards give you the option of 0% interest or rewards such as cash back. The choice will depend on whether you plan on letting balances run for short periods of time. If this is the case, the 0% option is best. If you are one who pays off your balances in full every month, then this option will not do you much good. Go for the rewards options instead.

It’s really important to use credit cards in your business only as short term financing solutions. Although interest rates on business credit cards tend to be less than on consumer credit cards, they are still higher than longer time financing options. Using your business credit cards for long term financing can eat into your profits and can make other financing options more difficult to obtain.

In certain instances, it may be okay to finance small portions of your business operations if you find your business to be short on cash. You should be confident that the sales you bring in during that operational period will be enough to service that debt. If you have any doubt, it may be wise to seek other options. Any accumulation of high interest debt will end up hurting your business and should be avoided as much as possible.

It would be a big challenge in today’s business environment to do without small business credit cards. Business moves fast and a business owner needs to have to right tools to make nimble decisions that may require the use of these cards. As long as it is managed in a responsible manner, there should be no problems in using this as a financing choice.


Rockfish Funding, LLC Obtains $5-Million CMBS Conduit Loan for Dover Downs Shopping Center, a Retail Power Center in Dover, DE

RF-Blast-Dover-Downs-Shopping-CenterRockfish Funding, LLC. has arranged a $5,000,000 CMBS conduit loan for the refinance of Dover Downs Shopping Center, a 95,717-square-foot power center located at 1165 North DuPont Highway (Route 13) in Dover, Delaware. Route 13 is the primary retail/commercial corridor serving Dover, the second-largest city in Delaware with a population of approximately 37,000 and growing. The center was constructed in 1993 and is 100% occupied. The property is anchored by Best Buy, Michaels and Ashley Furniture. The loan refinanced an existing CMBS conduit loan that was scheduled to mature in January 2016.

The property was originally occupied by Lowe’s Home Improvements, which relocated. The property was rezoned from C-4 to SC-1 to allow the property to be redeveloped into a multi-tenant power center that included the construction of the Best Buy space in what was the former Lowe’s garden center. The former owner, Dover Downs, Inc., completed the redevelopment and re-leasing and then sold the property to our borrower, Millers Dover Downs, LLC.

The transaction was originated by Lawler Rogers, Director of Rockfish Funding, who partnered with ValueXpress to complete the transaction. The deal was completed within 45 days and closed on time, such that the borrower avoided paying double interest on the new and existing loans. This loan was a follow-on to the Tally Ho Shopping Center loan that closed the previous week.

“This transaction is again proof that our strategy to support the Delaware marketplace is firmly rooted,” said Mr. Rogers. “In 2016, there will be over 100 transactions in the Delaware Market surpassing $400,000,000 in debt placements and restructurings, and we plan to work very effectively with property owners, property managers, and CRE professionals to deliver the highest level of service to the community possible.”

The transaction was underwritten by Jim Brett, head of underwriting at ValueXpress. The team was assisted by Robert Wittig of DSM Commercial, the property and leasing manager who pulled together market information and managed the survey process. Finally, the closing was completed on time by Julie Panaro of the Panaro Law Group.


Rockfish Funding, LLC Obtains $9-Million CMBS Conduit Loan for Tally Ho Shopping Center in Wilmington, DE

RF-for-BlastRockfish Funding, LLC has arranged a $9,000,000 CMBS conduit loan for the refinance of Tally Ho Shopping Center, a 25,100-square-foot neighborhood shopping center anchored by a Bank of America banking center that is leased until 2030. The property is located at the corner of Naamans Road and Concord Pike in Wilmington, Delaware, a heavily trafficked intersection in the Brandywine section of Wilmington. The center is 100% leased to ten tenants, some of which have been located in the center for over 20 years.

The transaction refinanced a maturing CMBS conduit loan that was originated ten years ago and provided a return of equity to the borrower. The transaction was originated by Lawler Rogers, Director of Rockfish Funding, who partnered with Value XPress to complete the transaction. The deal was completed within 45 days and closed on time, such that the borrower avoided paying double interest on the new and existing loan. “The transaction proceeded smoothly thanks to the skills that the team members brought to the table, starting with borrower Sharon Miller,” commented Michael D. Sneden, Executive Vice President at Value XPress. Sharon asked ‘what do I need to do’ and completed all her work with a great attitude. The transaction was underwritten by Jim Brett, head of underwriting at Value Xpress. The team was assisted by Robert Wittig at DSM Commercial, the property and leasing manager who pulled together market information and managed the survey process. Finally, the closing was completed on time by Julie Panaro of the Panaro Law Group.

“This transaction marks the beginning of a impressive relationship between Rockfish Funding and the CRE community especially as it relates to placing and restructuring non-recourse debt for sponsors, said Lawler Rogers. “We look forward to working with property owners, property managers, and other CRE professionals to grow our business organically throughout the Mid-Atlantic Region and beyond. This is a great team effort and we look forward to closing Dover Downs Shopping Center as part two of this project this week.”


Become A Real Estate Negotiating Rock Star With These Tips

Negotiating the price of real estate can be very intimidating. It isn’t something that comes natural to most people. We don’t negotiate prices in day-to-day transactions. However, when it comes to property, things are different. Prices have to be negotiated. The good news is it is a learnable skill. You just need to learn a few things so you can become the best negotiator possible.

To be good at it, you need to understand that the basic goal here isn’t to win. If you look at it as a win-lose task, you may never feel good with any outcome. The idea is to come up with a good compromise that works for everyone. It is also important to understand that sometimes you won’t reach a deal and that is fine. Don’t look at it as a failure. Learn from it and move on.

Now to increase your chances of success, you want to start by finding someone who is motivated to sell. If the seller really just wants to unload this piece of real estate, they will be much more open to negotiating a price.

Make sure you do some research before you get started. Try to discover why the seller is selling. Find out the worth of the property by looking at recent sales and comparable property. Do a background check to see if the property has liens or other issues that could negate a lower price. Backing up your offer with some solid reasons will help you feel more comfortable.

You also want to build a good relationship with the seller. If you go in there and just start rattling off numbers, the seller won’t feel very connected to you. Make them feel comfortable. Get to know them a little. Joke with them, even. Building a good rapport helps you seem more sincere.

As you get to know the seller, don’t forget to learn about the property. Ask questions so you can get to know more about what you are about to invest in. Ask direct questions and keep them open-ended so the seller has to give you lengthy answers and can’t just answer yes or no. This will naturally lead you into talking money.

Ask them straight out what they want for the property. Sometimes they won’t have an answer, so since you did some research, you can now bring out the figure you came up with and explain why you think it is fair. Do keep your offer on the low side so it gives you room to negotiate.

Negotiating a real estate purchase can become second nature once you get the process down. It really isn’t that hard. The seller wants to sell and you want to buy, so you both have a goal in common of getting the property sold. Just keep that in mind and you should do fine.


Options For Financing Business Solutions

Whether you’re buying an existing operation or starting something new, financing business solutions are available to ensure that what you started can sustain itself, at least until your little slice of empire becomes self-sufficient. Consider some key expenses that merit your attention.

 

Property

Having the needed space to operate is often one of the biggest expenses you will need to consider. If you’re buying, you’ll need to account for the capital needed to purchase land or a building. Even with a long-term commercial loan, items like closing costs and down payment will need to be covered. If clients will visit your site regularly, consider renting as an alternative. Whether the property is purchased or rented shouldn’t make a difference – your main concerns should be the ease of operations for your company and the impression that the building and grounds make on your clients.

 

Inventories

If production or distribution is what you do, then having a supply on hand is another expense you should look at for financing business solutions. Having sufficient inventory is vital when customers come looking. If what they need isn’t available, they may look elsewhere. But if you carry what they need when they need it, not only will they be happy, but they’re likely to spread the word to others about their positive experience. Some businesses ensure that on opening day, they have a full stock. Empty shelves should be put out of client sight.

 

Equipment

Having the infrastructure needed to run your money machine is another major consideration. The cost of material, installation, maintenance and emergencies should all be on your radar. Equipment running efficiently is like the oil running through a motor – it keeps things running smooth and cool. If employees need to learn how to use new equipment, ensure that they are well-trained. This will increase the odds that they take good care of such assets and can result in a longer life for your investments.

 

Cash

As the saying goes, cash is king. Financing business solutions should include an analysis of projected monthly costs and a plan for ensuring that liquid assets are there to continue feeding the operation. Some purchases require cash – especially when you’re already using credit for other aspects of the business. So be sure that you have enough available to you to use when you need it.

Your business can be profitable if you run it with good planning, patience and care. Financing business solutions can be your bridge across the gap from start to success.


Become A Real Estate Negotiating Rock Star With These Tips

Negotiating the price of real estate can be very intimidating. It isn’t something that comes natural to most people. We don’t negotiate prices in day-to-day transactions. However, when it comes to property, things are different. Prices have to be negotiated. The good news is it is a learnable skill. You just need to learn a few things so you can become the best negotiator possible. Read More


6 Major Benefits of Asset Based Lending

An asset based loan is a loan where you borrow against your assets. Generally, you just borrow what you need when you need it, so it is similar to a line of credit in how it works. However, asset based lending has some distinct benefits that other types of financing doesn’t. Read More