Sustaining Homeownership in an Unsustainable Economy

22:05 12 December in Blog
Recent data suggests that significant roadblocks could arise in the near future that would challenge those wishing to become homeowners.  The data collected was made public under the Home Mortgage Disclosure Act (HMDA). From this information, we can gather that African American homebuyers represent 4.8% of the total home purchase loans from 2013.
For conventional loans, African Americans were denied at levels that ranged from 25.5% to 56%, according to the HMDA data from 2013. Projections assume there could be as many as 17 million new U.S. households leading up to the year 2025. Potentially, 13 million of the 17 million new households could be owned by minority families. So, what does this mean for the future of our economy?
During the foreclosure crisis, African American home-purchase loan trends have seen a significant decrease, falling from 8.7% in 2006 to 4.8% in 2013. In contrast to the increase there has been with Caucasian home-purchase loan activity (rising from 61.2% in 2006 to 70.2% in 2013); these figures are staggering.
More than 70% of mortgage loans were made to African American homeowners last year, and 63% were made to Hispanic homeowners. We want to tell you what can be done. There are a variety of tools and policies at your disposal that are proven to extend sustainable homeownership to racial minority homeowners. The 97% loan-to-value (LTV) mortgage is one tool that you might have seen featured on Freddie Mac. The rate for this type of loan is extremely similar to that of loans with down payments as high as 10%. Federal Housing Finance Agency Director Mel Watt declared that the government conservator of Fannie Mae and Freddie will consider reinstating the purchase of LTV loans by the two government-sponsored enterprises. Alternative credit scoring models are also under consideration.
Accessible home-purchase loan options should be just that, accessible. Minority families need accommodation at the national level so they can maintain job growth and sustain their homes. Capstone Capital Group, LLC understands the difficulty facing homeowners of color and we stand with you in fighting for the tools and policies that are necessary for sustainable home ownership. For more information about Capstone invoice factoring, commercial and business funding solutions, give us a call today at (347) 821-3400 and speak to a representative.

Wrist Watch Company Case Study

19:57 08 December in Case Studies

Case Study Wrist Watch Company: Trade Financing & Factoring


In addition to struggling with collections, bad debt and a lack of working capital, this company also operated below breakeven. Their debt exceeded the value of A/R and they were placed on cash-in-advance terms with vendors. The company was in work out with their primary bank on a $6 million credit facility.


Local family owned and operated wristwatch company headquartered in Upstate New York with its roots dating back over 100 years

• Majority of accounts receivable were long-standing relationships going back 40 years

• Provided Trade Financing and a Factoring Facility

• Conducted a credit review of all customers

• Reestablished credit terms with the company’s vendors

• Had company sell off old unusable inventory & non-sales generating assets and release excess employees to reduce monthly operating overhead


Sales doubled first 12 months – expected to increase by another 30% for 2014 • Customer base shifted from small boutique retail stores to major big box retailers and home shopping shows • Bank line significantly reduced


Call: 212-755-3636





Case Study Electrical Contracting Firm: Single Invoice Factoring

19:52 08 December in Case Studies


Following the devastating effects of Hurricane Sandy, the company experienced a market-demand extension of payment terms. As a result of the slowdown in cash flow there was a delay in payment to suppliers, missed bid opportunities, and the company couldn’t fund payroll or meet increased demands. The company was put into financial distress when they were turned down by local banks and their recommended financiers. Due to this, the company couldn’t meet other loan covenants, experienced debt hangovers, strict credit limits and balance sheet discrepancies.


Locally owned and operated electrical contracting firm in New York City

• Clients: City of New York, NYS Board of Education, Mass Transit 3

• Provided a Single Invoice Factoring Facility

• Electrical Contractor Used Capstones Financial Statement to demonstrate financial capability and increased his bidding opportunities and wins

• Capstone factored the invoices and paid suppliers and subcontractors directly under funds control


Increased bonding value to $10 Million with retained earnings • Increased sales by 2.5 times in 2013 • Won an additional 10 SCA contracts for


Call: 212-755-3636



Case Study Painting Subcontractor: Single Invoice Factoring

19:46 08 December in Case Studies


Because of the financial crisis, this company experienced hangover effects, including an increase in delayed payments from General Contractors, a lack of working capital to buy supplies and pay vendors, missed bid opportunities and more. The growth was outpacing cash flow and larger payroll commitments weren’t met, increasing the company’s number of unpaid invoices.


Painting subcontractor located in the Yucca Valley, California

• In business for over 42 years

• Clients: Large commercial and apartment complex construction firms

• Relationship with Capstone for over 2 years

• Provided a Single Invoice Factoring Facility to increase working capital

• Total volume factored invoices approx. $2.5 million

• Factored close to 100 invoices


Increased business volume by 15% in 2014

• Contract backlog of $300,000

• Expansion into other verticals of the painting industry including custom homes and homeowner associations (HOAs)

• Firm can now focus on planning and performance of contracts while bidding on new work opportunities


Call: 212-755-3636





Long Island Waterways FEMA Contract Case Study Download

19:41 08 December in Case Studies

Long Island Waterway Debris Removal Firm: Single Invoice Factoring


The process of collecting the debris was complex because the debris first had to be identified. A sonar ship was hired by our client to identify all of the debris and then equipment had to be deployed to remove it weather permitting. The debris consisted of simple materials like wood to complex material like steel ships and everything in between like patio furniture, cars, washing machines, dryers, other home appliances, and sheds. The client, had they elect to self-finance this project, would have required over $3,000,000 of working capital during the period that the first round of invoices were issued. The New York municipal agency generally takes extended terms prior to issuing payment. If the client lacked the $3,000,000 working capital, each subcontractor and material vendor would also be required to support the project for an extended period of time expending his or her own resources without payment from our client.


In 2013 the Tri-State are was devastated by Super Storm Sandy

• Long Island waterways were littered with storm debris, requiring extensive cleanup solutions

• Capstone came up with a factoring solution to meet our client’s working capital needs

• Implement a swift course of action for accelerated cash flow


Because of the client’s ability to demonstrate to the NY municipal agency that it could finance itself and perform to a high standard under this contract, the client has been awarded a subsequent $8,000,000 contract.



Call: 212-755-3636



Manufacturing Still Matters in the U.S.

00:29 06 December in Blog
Manufacturing is an important facet of the U.S. economy, despite the increase in imported goods steady elimination of factory jobs here in the states. With private sector manufacturing jobs representing only 10% of the workforce now versus 25% during the 1980s, it would seem the private sector wouldn’t provide much stamina.  However, this disregards those who rely on manufacturing, such as truck drivers and forklift operators. 
The yardstick that measures the robustness of manufacturing includes the following indicators:
  •  Final sales of U.S. made goods
  •  Ultimate price garnered by domestically produced goods (this accounts for approximately one-third of gross domestic product)

GDP tends to be most influenced by the goods sector, which includes areas like mining that causes fluctuation of the GDP based on whether times are good or bad.

The news appears to be good for U.S. manufacturers.  The institute for Supply Management’s index saw a jump in manufacturing in the month of October to 59 from 56.6 in September. This places manufacturing above 50, matching its three-year high. 
While financial information provided by Markit shows manufacturing’s gains easing up, the Federal Reserve Bank of New York and Philadelphia shows an uptick in activity.  Additionally, estimates by economists show increases in the last quarter of 2014.  Clearly manufacturing in the U.S. appears to be holding strong, at least for a while.
Thanks to a sharp decline in oil, costs of products will decrease, and a stronger dollar will make products less competitive globally.   Further, the fall in oil prices will likewise bolster the cost of good production here in the U.S.
Additionally, the increase in factory activity may reflect a healthier stage in the economy as hiring goes up allowing for more consumer spending. This would also encourage companies to step up production in turn necessitating additional hiring.  The good news in manufacturing could spell a very promising 2015. 
While manufacturing here in the U.S. seems to be picking up speed, there are still many small to mid-sized business out there in need of additional working capital to make payroll or expand operations.  Capstone Capital Group, LLC understands the difficulty of obtaining traditional business financing and accordingly offers Single Invoice Factoring (“Spot Factoring”) as a solution.   For years, we have helped organizations get the immediate cash they needed without the typical red tape that most banks require.  For more information about Capstone and our Single Invoice and Purchase order Factoring, give us a call today at (347) 821-3400 and speak to a representative.

Bye-Bye, Branches-Branch Closures Signal Big Changes in Banking Services

15:23 26 November in Blog
As banking continues to go through changes and services become more electronic-based, bank branches are slowly falling off the map. Just under 2,600 bank branches have closed in 2014, while a mere 1,137 have opened. SNL Financial reported that 2013 saw a net loss of 1,487 branches while 2014 has seen a loss of 1,462 so far. In total, there are 94,752 branches in the US, leveling out to an overall 1.5% decline.
Acquisitions, mergers, e-banking services, regulation and many other factors have contributed to the slow decline of brick and mortar branches.
The following top five banks that have seen closures this past year:
·         Bank of America (148 closures)
·         SunTrust (60)
·         BNP Paribas (47)
·         KeyCorp (45)
·         JP Morgan Chase (40)
It’s clearly noticeable that Bank of America has seen the highest number of brick and mortar branch closings. In the 3rd quarter alone, the company saw 41 closings. Bank of America is currently the second largest bank determined by deposits. It ranks third for branch numbers in the US. As of June 30, 2014, this number was 5,099.
As closures continue to sprout up across the board in virtually all areas of the US, many fear that the impact on neighborhoods and communities will be a significant one. The National Community Reinvestment Coalition stated in a report the “vibrancy of communities” relies heavily on the “critical services” that bank branches provide. The group noted that predatory lenders are just one of the many problems that arise in areas where bank branches close their doors.
Others believe that bank branch closings will only see a temporary decline. Banking analysts are confident that things will smooth over once the yield curve begins to expand, and the Federal Reserve regulates interest rate policy.
In terms of regional closings, SNL Financial reported that Chicago has seen the largest hit with 125 losses. Washington, D.C., saw the second most amount of closings, ranking in at 39.
Illinois, in terms of state closings, saw the largest loss. Ranked behind Illinois were Pennsylvania with 92 losses, Ohio (84), Michigan (75), and New York (70). In fact, only six states reported positive gains in the past year. Nebraska saw the most openings which totaled to nine.
While most banking services can be conducted online, there are still some things that community bank branches do which serve a purpose. Regardless of technology and mergers rendering a select few branches useless, the rest will continue to thrive and serve communities.
The banking industry has gone through many changes these past few years and continues to do so.  Services that banks used to offer have changed significantly and have even been eliminated altogether.  With regulators imposing ever stricter rules on credit, businesses are finding it more and more difficult to obtain loans they truly need.  Capstone Capital Group, LLC has the answer.  Capstone has eliminated the bank red tape by offering small to mid-sized business Single Invoice Factoring (“Spot Factoring”).   Businesses can now get the immediate cash they need in exchange for working capital from Capstone Capital Group.  For more information on Capstone’s Single Invoice Factoring call us today at (347) 821-3400.  

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