Author: Capstone

Celebrating the 100th Anniversary of the Bronx

20:40 15 May in Blog
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Claritza Wilshire, Business Development Officer at Capstone Capital Group, LLC attended the Sixteenth Annual Bronx Banker’s Breakfast.  The meeting was hosted by the Business Initiative Corporation of New York (BICNY) and BronxBorough President Ruben Diaz, Jr.
The meeting focused on revitalization of the Bronx’s economic activity and financial projections. The event was part of the several ceremonies commemorating the 100thAnniversary of the Bronx.
Capstone Capital Group, LLC attended with the following institutions: Citibank, Popular Community Bank, Rite Check, Capital One Bank, Hudson Valley Community Bank, Bethex Federal Credit Union, JP Morgan Chase, Ponce De Leon FSB, Spring Bank, Webster Bank, Wells Fargo, Apple Bank, Flushing Savings Bank, M&T Bank, Signature Bank, IDS Corporation, Monroe College, US Small Business Administration, SBDC at Lehman College and SCORE.
Capstone Capital Group, LLC is committed to supporting the development and redevelopment of Bronx infrastructure projects thru its funding programs.
Subcontractors who are winning bidders can rely on Capstone Capital Group, LLC factor programs to assist them in meeting their contractual obligations, working capital needs and supplier credit facilities.
Is it time for your company to partner with Capstone and arrange a factoring facility for your working capital needs? Call us today at 347-821-3400 or visit our website at www.capstonetrade.com.
View our photos from the Sixteenth Annual Bronx Banker’s Breakfast:
Marlene Cintron, President of BICNY and Claritza Wilshire, Capstone Business Development Office
Bronx Borough President Ruben Diaz, Jr. and Claritza Wilshire, Capstone Business Development Office
Madeline V. Marque, VP of BICNY, Claritza Wilshire, Capstone Business Development Office and Ruben Diaz, Sr.

Fed Up or Fed Down?

19:37 08 May in Blog
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On May 7, 2014, Fed Chairwoman, Janet Yellen, testified before Congress and provided information on a host of issues relevant to all of our businesses.
 
Ms. Yellen found that business is rebounding at a fast pace and making up for the loss of business in the first quarter of 2014 which was down primarily due to the harsh weather experienced during that time.
 
Ms. Yellen would not comment on when interest rates would be raised.  However, the point is that interest rates will continue to remain low for the foreseeable future.  Obviously with budget deficits as large as they are within the Federal Government, it will be difficult to pay a higher rate on government debt should rates rise with so much short-term government debt outstanding.
 
Ms. Yellen was bullish on the stock market and indicated that there is no bubble as a result of the Fed’s policies.  She did indicate that certain sectors may be reaching historic highs, but there is no risk to the overall financial system or the stock market from these pockets that may have higher than normal price-earnings ratio and valuations.
 
Ms. Yellen extolled the benefits the Fed’s policy has had in the housing market.  She equated the Fed’s policy to bring back wealth to many citizens who are homeowners but were once underwater as a result of the financial crisis.  She expressed concerns about the job market because the unemployment rate, when combined with the labor force participation rate, demonstrates that the employment market is not healthy.  She sites that those unemployed for at least six months and those working part time but would prefer a full-time job, are at historic highs.
 
What does this mean to you as a small business owner?
  • Many opportunities are available to grow your business; the economy is making up for lost time due to the weather related slowdown in the first quarter of 2014.
  • There are plenty of workers out there looking for full-time jobs that pay well.  The labor force will support your expansion.
  • Low interest rates means that banks will not be taking on risks associated with funding to small businesses.  
Just for fun, what does this mean to you as a person?
  • If you don’t own a home maybe it’s a good time to buy one if you can afford it.
  • If you’re a gambler, try your hand at the stock market, as the Fed will continue to support it with excess liquidity.
Now is the time to arrange a spot factoring facility with a company like Capstone Capital Group, LLC for your working capital needs to fund your expansion and increased staffing costs.
 
To view the full hearing click here

Let the Games Begin!

19:00 01 May in Blog
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The Federal Reserve (“Fed”) has now entered into its fourth month of reducing the impact of quantitative easing on the economy. 
The original theory behind quantitative easing was that if the Fed purchased bonds, it could sustain lower interest rates for borrowers. Therefore, more companies would borrow, which in turn, would help the economy with import finance.  Once small businesses started borrowing, they would expand their plant and equipment, hire new employees and have more profit.  However, the theory of quantitative easing did not work that way in a practical sense. 
What actually happened was the banks lent the money they could borrow from the Fed back to the Fed by depositing funds with them in return for an interest rate with no risk to their capital, unlike a small business loan. These business funding solutions were done at such high levels (i.e. tens of trillions of dollars) that the banks have been able to restore their capital base without having to pay any interest to their depositors (we don’t consider a quarter or one percent per year interest to a saver “interest”.) 
Without banks having to pay significant interest rates to their depositors, there was no driving force to encourage the underwriting of small business loans and take the risk.  The Fortune 1000 and companies of the sort that were cash rich over the last six years could borrow all they wanted from banks. However, those companies decided to go to the bond market where they could negotiate better terms. Because of this, the banks made loans to this group of companies and very few of the companies actually needed the loans and thus did not down on their credit facilities.
Because of the reduction in quantitative easing, the pundit and economists are projecting a mere 3.5% growth for the economy.  The Fed is lowering its quantitative easing by $10 billion per month (no typo here.)  The theory is that the banks will now begin to make small business loans because the Fed is no longer their biggest customer.  Interest rates will start to tick upward so the banks can price the new small business loans commensurate with the change in credit from the Fed to the mom and pop operator around the corner from your house.
But just in the nick of time, Dodd-Frank banking regulations have become effective which require the banks to do the exact opposite of what the reduction of quantitative easing should bring to the economy – growth.
Dodd-Frank is also known as the “Too Big to Fail” legislation.  This legislation was designed to reduce the impact on taxpayers when banks take risks with their depositor’s money.   Just when the Fed took a step to help the economy, Dodd-Frank will be applying the brakes again to small businesses.  For this reason, we have been trying to reach out and explain why factoring your accounts receivable with Capstone Capital Group, LLC to generate working capital is a step forward to accomplishing your business goals for 2014 and beyond

Get By With A Little Help From Your Friends

20:30 24 April in Blog
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Big Firms Fill Funding Gap was the headline on April 22, 2014’s CFO Journal section of The Wall Street Journal.  The article confirms our predictions that the unintended consequence of Dodd-Frank is the reduction of capital available for small companies.  The article describes how large companies who rely on smaller companies are financing their expansion of plant and equipment to supply their larger counterpart with goods under a long term supply agreement.  Typically, the supply agreement provides the capital to payback the loan made by the larger company to the smaller company.
The article goes on to describe how accounts receivable factoring has become a mainstream method of financing the working capital needs of small business.  At one time, factoring was a financing methodology only used by desperate companies.  Dodd-Frank has changed all of that.  At Capstone Capital Group, LLC we have seen our factoring business grow exponentially over the last 18 months.
One of our factoring clients has made a great case study that proves the benefits of both factoring and a large company financing a small company.  The company is located in the Midwest and is a co-packer for fresh and frozen bakery products for major name brand food products companies.  Last year, the company entered into a new contract with a multi-billion dollar company.  Our client did such a great job as a co-packer their client came to them and offered to purchase equipment that would enhance their production facility.  Our client’s management agreed and the food company made an interest free loan for the new equipment which will be paid back over 18 months.  The payment plan requires no money, just a discount off of the case price of a product they will sell to their customer.  The incremental increase in business each year will be a minimum of $2,000,000 per month.  That is a home run.
There are no strings attached.  Our client can produce a similar product with a different recipe for other clients.  This, combined with the invoice factoring program we have put in place, has enabled the company to increase its employees, operate more efficiently and increase their gross margin.
In business, there are times when out of the box solutions are necessary to accomplish your goals.  Factoring with Capstone Capital Group, LLC may be the out of the box solution you need to get you to the next level.  Once your customers see the direction you’ve set for your business, they too will offer out of the box solutions to increase your business and create benefits for both of you.  Start Spot factoring your receivables today and continue to pursue your business goals.  Once you have committed them to paper one way or another you will find out how to attain them even if it is with a little help from your friends.

How Much Time Do You Have?

19:00 10 April in Blog
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Now that you’ve assessed your progress to date upon the close of the first quarter, its time to determine how much time you have to get going.
In an article in the Wall Street Journal from April 1, 2014 entitled, “Creating A Path To Bankability,” the author discusses the various finance tools available to small businesses looking to expand.  The main point of the article is that while many alternative lenders exist for the sole purpose of preying on small businesses that do not have the financial stability to acquire more affordable financing, there are lenders that provide alternative lending solutions which put the company in a better position than where they started.
The reality behind inexpensive financing and SBA loans is that they require a significant amount of time, and as the old adage says, “time is money.”  How long can you afford to wait to grow your business while you shop your loan around to various lenders who will take months to review stacks of paperwork that will be required of you?  My guess is, if you’re looking for financing you’d like to get it as soon as possible.  Any time spent with your application on someone’s desk is time spent NOT growing your business.
Capstone Capital Group, LLC’s approach to this problem is very straightforward.  Within minutes of receiving an application, we are running searches and reaching out to you to acquire the information we need to make a fast decision.  We are as eager to do business with you as you are to do business with us.  Our process can be summarized with two very simple questions:
  1. Do you have accounts receivable to sell?
  2. Do you want to grow your business?
If you answered yes to both of these questions, there is no reason to let opportunities continue to pass you by.  The best part about working with Capstone is that there are no long term commitments and we are willing to work within any bank relationship you may already have in place!  Better yet, continue to work towards getting that SBA loan you have your heart set on and factor your invoices with Capstone to bridge the gap between applying for and securing your SBA loan.
Contact Capstone today to find out more about our invoice factoring and trade finance solutions.  Stop waiting, you’re running out of time!

MTA Rebuilding Infrastructure & Resiliency – Opportunities for NY Contractors and MWDBEs

19:00 03 April in Blog
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Capstone Capital Group, LLC attended the Fix & Fortify Sandy Recovery Work conference for DBEsand NYS Certified MWBEs held on March 28, 2014 at Club 101 in New York City.  Over 300 participants related to the construction, transportation, financial, and municipal industries attended the conference as representatives from the MTA (Metropolitan Transportation Authority) in conjunction with the US DOT (US Department of Transportation) unveiled their contract opportunities for the LIRR, Metro North, and NYC subway systems.  These MTA projects mean big opportunities as small businesses in New York have been invited to submit bids on the projects. 
From rebuilding entire subway stations to replacing vital components in the majority of the 656 miles of track and tunnels affected by flooding, to implementing preventative initiatives for maintaining resiliency, the “Fix & Fortify” program has created an unprecedented amount of projects for small businesses and MWDBEs (Minority Woman and Disadvantaged Owned Business Enterprises.) 
The Fix & Fortify conference follows right on the heels of Governor Cuomo’s unveiling of a $4.9 Billion Coordinated Transportation Resiliency Program on March 27, 2014.  The US DOT has pledged approximately $3.8 billion in funding allocated for Sandy recovery and resiliency projects. The resonating message throughout was “Fix & Fortify”; rebuild stronger and smarter to prevent future destruction. 
A speaker at the conference, Alphonso David, Deputy Secretary for Civil Rights of the New York State Governor’s Office spoke of the importance of identifying barriers for small businesses and MWDBE contractors to overcome.  Over the years and through many clients, Capstone has been able to identify unique barriers that small businesses and MWDBEs face, the main one being lack of access to sufficient capital to expand their businesses. 
Capstone has been able to structure a business funding platform specifically to support the working capital needs of these types of businesses and we have pledged our support for businesses who successfully bid on these transportation projects. Now is the time to secure your working capital with Capstone.  Take advantage of this unprecedented opportunity with the MTA and bid with confidence!  

JOBs, JOBs, JOBs

17:12 13 March in Blog
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Last Friday the US Jobs report for January 2014 was published.  The economy created 175,000 new jobs in the month of January.  Economists expected this figure to be lower because of severe weather throughout the United States.  If the figure was smaller, the typical cycle of the economy losing steam in the Spring would have been predicted.  This cycle of the economy losing steam each Spring has been going on for at least five years.
Economists are now predicting that the growth they projected for 2014 is sustainable and will continue throughout the year.  Let us hope that by the end of March they do not revise the January jobs number downward.  Typically, what happens is the job numbers are often adjusted negatively or downward 45 to 60 days after they are published.  This gives the economists the opportunity to revise their forecasts.  But more importantly, at this point who cares? 
How is your economy doing?  Our clients at Capstone Capital Group, LLC seem to be doing very well.  Each month we are setting records in terms of business funding solutions and new client origination.  Regardless of what the US Jobs report says (or their revised versions), our clients will grow substantially in 2014.
We are fortunate to operate in a micro economy where the macro economy has significant influence but it doesn’t stop those entrepreneurs who are constantly seeking out opportunities to attain their goals.  We continue to advocate that you should ignore the economic forecast lest they color your view of the opportunities that are within reach.  Last week we discussed “getting into the game” by finding a small business funding source to support your company’s growth and bid opportunities in Get in the Game!.  This week, the economic data supports that view and if you are too slow at jumping in you may get left behind.
Sarah E. Needleman writes a column called the Accidental Entrepreneur for The Wall Street Journal.  Last week she published an article entitled “When Banks Won’t Back Your Startup.”  In the article, she interviewed a company who availed themselves of a Factor because no other financial institution would provide funding.  Through the use of the factor, the company was able to cover operating expenses while waiting for customers to pay.  The company grew significantly and eventually raised $250,000 in investor funding. 
To quote the owner of the company “Factoring is an amazing strategy when you can’t go to a bank and you are trying to get a product out there.” 
To sum it all up, the economy is coming back, Get in the Game!, get some new contracts, and get a Factor to fund them  If you are a construction subcontractor we are waiting for you!

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