Best state to open your loan brokerage

14:24 07 May in Blog, Broker Resources

If you are considering opening a new loan brokerage, like any other business, location matters. Some areas may offer more opportunities than other, regardless of what type of business you are planning to launch. For a loan brokerage, it makes sense to establish a business where there are numerous businesses starting, and a shortage of access to capital.

Various Metrics Available for Loan Brokerages

While North Dakota, Utah, Florida, Texas and Nevada show the highest average growth in new business startups, some of these states already have the most accessible financing available. For example, North Dakota and Utah along with Iowa and South Dakota have been rated by Wallet Hub as the states with the most accessible financing.

However, if you look at Florida and Nevada in this same report, they rank near the bottom in terms of accessibility to financing. Keep in mind, in order for a business to thrive, they need working capital. Keep in mind, for a small business, capital is a must. Before a small company can grow, they need to increase their market share, hire employees, may need additional inventory, and they will likely need equipment. That means they are the ideal target audience for a new loan brokerage.

Regulatory Requirements May Pose Challenges

Before you decide where to locate your business, you should research the requirements for loan brokers in the state. Some states may require individual licenses as a loan broker. If you live in one state, and you are doing business in another state, you may face other regulations as well. Careful review of a state’s financial regulations will help you determine where you can make the most difference, and where you may be subject to fewer regulations.

Borders Not the Barriers They Once Were

For those commercial loan brokers who are not interested in relocating to Florida or Nevada, all is not lost. Thanks to and ever-changing technology landscape, it is now possible to do business across the country as seamlessly as we once did business face-to-face. Many direct lenders make loan applications available online and thousands of lenders welcome loan requests from brokers regardless of where they are located geographically.

Your Most Important Goal: Meeting Client Needs

Your client’s goals will be the most important aspect of your business. Regardless of size, all businesses need working capital. This capital may be used in various ways including:

  • Increased marketing efforts
  • Paying employees/hiring new employees
  • Meeting regular obligations such as rent of space
  • Purchasing equipment
  • Ensuring proper inventory

As a loan broker, your task will be to match your client’s needs with the right lender, and the right capital type, regardless of where you are doing business. This is where Capstone can help.

Valued Relationship with Brokers

Many lenders offer a one-time referral fee to a loan broker who brings in new business. They are initially excited to do business with you because it means they have a new client. Oftentimes, once a relationship is established with your client, the lending institution turns their back on the broker who referred them. That’s not how Capstone does business — we nurture loan brokers who refer business to our firm. In addition to paying you a commission for the life of our relationship with your client, we also offer guidance in other ways. For example, Capstone offers those who refer business regular access to various training and other resources to help them grow their business. We believe that the more successful you are, the more successful we are. Therefore, in addition to regular accounting of all business transactions and regular commission checks from your clients, you can turn to us for assistance in expanding your loan brokerage.

If you want to learn more about how Capstone supports their referral network, contact Capstone Capital Group today at (212) 755-3636 and see how we can help you grow your business, and provide your clients the financing they need.

 

3 Things Brokers can do to Leverage Lower Rates from Lenders

12:05 01 May in Blog, Broker Resources

Interest rates are one way a broker can stand out from others in their field. With overall interest rates rising however, getting the best possible loan rates from lenders presents some interesting challenges. This is particularly true as lenders often shy away from making small business loans, preferring those loans where a company is well-established, has a proven track record, and has sizable assets. The irony is these are the same firms which may not need a loan.

As a finance broker, you are probably dealing with a company who may be struggling to obtain capital from their local banks. This means you have to evaluate your client’s needs, identify the right lender, and negotiate the best possible rate to meet their needs with that lender. Finding the right leverage when negotiating with a lender isn’t always easy but there are three things you can do which may help.

1. Identify the Business Strengths

When the business you represent has strong contracts with customers, has a sterling collection record, or has a low debt ratio, you have the ideal leverage to negotiate a lower interest rate. These are all plusses which can be used in discussions with a lender. Make sure you highlight these strengths when you submit a loan package because they could help you get a lower rate.

2. Offer a Lender Collateral

For some borrowers, collateral is the best leverage they have. For example, a company that has valuable equipment may be able to live with a lien on the equipment. This works best when a company does not have to worry about upgrading due to technological advances. Many lenders feel more confident lending when there is a backup plan in the event of default. This may also be helpful when seeking a lower interest rate.

3. Consider Lines of Credit vs. Loans

Lines of credit often have lower interest rates. They also offer other benefits including your client’s ability to use funds on an as-needed basis. The company pays interest only on the funds which they use, and the balance of the loan remains on deposit with the bank until it is needed. The added benefit of this type of financing is the customer also makes payments only on what they are using.

Consider an Alternative to Bank Loans

Keep in mind, lenders are in business to make money. To maximize their profit, they may be offering a variety of programs with slightly higher interest rates than you might otherwise expect. What many financial brokers overlook is the ability for their customers to get the money they need without having to take on the additional burden of debt. This can be accomplished through the process of invoice factoring.

Factoring invoices can provide numerous benefits to your customer. Some of those benefits include:

  • No Debt– factoring means a business owner has no need to borrow money. Lack of debt improves the business’s balance sheet. Not taking on debt also means there is no loan servicing to be concerned about meaning the business is not worried about having money to make loan payments every month.
  • Transfer of Risk – instead of worrying about collecting money from a client, when a business factors an invoice, they are transferring the risk of the collections from themselves to the factoring company.
  • No Hidden Fees – unlike a bank loan, you will not incur a late fee for payment nor will you incur a penalty for paying early. If a client pays the factoring company before the invoice is due, it merely improves your customer’s standing and strengthens their position the next time they opt to factor an invoice.

One of the numerous benefits of working with a factoring company is interest does not accrue on an outstanding balance. In fact, your customer will know up front exactly how much they are going to pay in fees. Another significant benefit is time: You never have to wait weeks, and in some cases months, for an answer. In most cases, you will know within a short period of time whether a transaction is approved, and your client will have the money they need within a few business days.

If you have clients you feel could benefit from invoice factoring, you should contact Capstone immediately. We’re committed to working with brokers across the country who have customers who need capital to keep their business operating. We can help you get your customer the money they need without worrying about the burden of added debt. Contact one of our account representatives today at 347-410-9894, reach out to us via email at [email protected] or fill out our simple online contact form and let’s see what we can do to help.

Merchant Cash Advance or Invoice Factoring

10:09 10 March in Blog, Business Funding

One of the options small businesses may turn to for financing immediate cash flow needs is a merchant cash advance (MCA). However, these cash advances can set off a devastating cycle of borrowing which can have catastrophic consequences for a business owner.

While a Merchant Cash Advance, (MCA) can help a business owner secure immediate financing, there are several pitfalls they should be aware of before opting for this type of financing. First, most MCAs are approved based on debit and credit card payments over a specific period. Secondarily, they can be very costly, with APRs (annual percentage rates) as high as triple digits.

MCAs Work But at What Cost?

While in the past all MCAs based advances strictly on debit and credit card transactions, more vendors are offering more flexible options which include all sales. Business owners would submit an application, the vendor will make a proposal to offer a certain amount of cash in advance and payment arrangement will be made. However, there’s more to this than meets the eye.

When using an MCA, the repayment terms typically mean the business owner will pay the advance through daily or weekly payments plus fees. The amount paid is generally based on various factors including the amount borrowed, plus the fees, plus the term of the MCA. Repayment is based on the amount of debit and credit card sales and is debited automatically from those sales. The predicament most business owners face is they have no control over the length of time it may take to repay the MCA — since it is based on new sales, this could mean it takes longer to pay the full amount. Remember, the longer repayment takes, the higher the APR. The other concern is the contracts may be confusing meaning your client may be signing something they do not fully understand.

Why Invoice Factoring Makes More Sense

For nearly every business owner, invoice factoring is a better option. There are several reasons for this including:

  • Easy to understand — contracts for accounts receivable financing are written in a manner which is clear to the customer. Business owners will be able to clearly review their terms and understand exactly what they are paying for fees.
  • Not based on future sales — rather than taking a chance on lower sales in the future, meaning longer repayment times, your clients are getting an advance on existing sales. This is good news because it means APRs are not higher, and they are not dependent on monies not yet earned to get the cash they need.
  • Different type of automatic payment — payments for factored invoice are made by the end client; the one who is paying the invoice. That means your client never has to worry about a weekly or monthly payment to pay back the advance they have received.
  • No impact on other sales — the only funds used to pay off the advance your client has received is the payment on the invoice they have factored. This makes sense because should there come a time when they have a need for additional cash, they can select other client’s invoices to factor.

While MCAs may be valuable for some clients, at Capstone, we believe invoice factoring is a more stable, safer option for nearly every client. Since repayment does not impact future sales, it also allows your clients more flexibility.

Capstone understands every business is different and may have different financing needs. That’s one of the many reasons we are here to offer a customized financial solution to help your client meet their immediate cash flow needs without impeding their future sales. Contact our offices today and let us see if we can help you find the best solution for your client. You can reach one of our highly-trained representatives at (212) 755-3636, you can contact us by email at [email protected] or you can fill out our simple to use online contact form. Let us help you drive your client’s growth and success.

 

Purchase Order Factoring

2019 Business Funding After A Strong Year Cutting Regulations

14:12 16 February in Blog, News

Rollbacks to Dodd-Frank and other regulatory rollbacks allowed banks to thrive through 2018. However, this has not made obtaining business funding significantly easier for small to mid-sized businesses. The challenge many face is these regulations have helped improve the bottom line of banks, but fewer community banks are having an impact on small business lending.

Public Policy, Banking and Financing

There is an expectation that deregulation will continue through 2019 as President Trump continues to move forward with stripping regulations. Some of these changes will make it easier for new businesses to form, others will allow businesses to save money, and still others are likely to make access to capital easier. However, there are some changes which are currently occurring in the banking industry which all business owners should be paying attention to including:

Payment services — as more online payment services continue to make it easier for people to pay online, 2019 may be the time when we see larger market players such as Amazon step up and offer payment services. This can be good for competition but may not have much impact on available financing options.

Digital banking growth — online banking will continue to explode as people become more confident doing their banking online. The challenge this can present for small and mid-sized business owners, is this could mean fewer employees at brick and mortar banks narrowing the opportunity for face-to-face interaction. There is no doubt that oftentimes businesses doing business with community banks depend on relationship.

Online attacks to banking — cyber attacks will continue to be a concern and as more people take their banking mobile, this can only spell trouble for online and mobile banking customers. Institutions will have to continue to work hard to earn customer trust and ensure security of banking information.

The Impact of the Decline of Community Banks

One of the challenges facing small businesses is the decline of community banks. Currently, approximately 77 percent of agricultural loans and over 50 percent of small business loans are funded by community banks. There are reasons why fewer community banks means capital is more challenging for small business owners.

Large banks and financial institutions tend to use a ‘one-size-fits-all’ approach to underwriting loans. This means they are looking at specific criteria and making their loan decisions based on that criteria. This is problematic for small businesses who often need someone willing to listen to the unique perspective of a small business owner and dig further into the financial strength of the company.

Despite the relaxation in regulations, community banks are facing challenges competing with larger lenders and with credit unions. Again, for small business, this is a challenge for financing since these financial institutions tend to use more of a cookie cutter approach to funding.

In many cases, small businesses do not meet the basic criteria including loan amounts, capital on hand, or assets which may be used for collateral.

Meeting Business Financing Challenges

Even with decreased regulations and assuming going into 2019 more banks show a willingness to open up funding to more small and mid-sized businesses, there are still specific business types which will continue to face headwinds when it comes to obtaining funding.

Subcontractors often face unique challenges obtaining funding since they are often at the mercy of a contractor. Contractors face their own challenges and when they go to a bank, they are often turned away because the banks do not always understand the business model which is being used. Other businesses such as staffing agencies, architects, and environmental companies may continue to face challenges obtaining much-needed financing. This is when Capstone Capital Group can be the solution to your cash flow and capitalization problem.

Capstone never takes the approach that every financing proposal will work for every company. We also understand the importance of underwriting every loan package as a stand-alone. This means we are uniquely positioned to help more small and mid-sized business obtain the right financing package to meet their needs. If you are facing challenges securing financing for your business, contact Capstone Capital Group to review your company’s working capital requirements. You can also request additional information about Capstone’s financial services upon request. Please contact us by filling out our simple form on our website  or contact us directly at us at 347-410-9894 to speak with a representative today.

New Challenges and Business Trends for 2019

13:17 07 February in Blog

Small and mid-sized business owners will face challenges in 2019 that were inconceivable a mere decade ago. As technology continues to improve, there  is often an urge to become a more digital firm. While this approach works to some degree, it is important to continue maintaining a face-to-face presence when dealing with customers. There are other trends to watch,  that  will challenge businesses to face moving into 2019 which business owners must adapt to as well.  Here are some business trends to watch for in 2019.

Trending Labor Market Changes

Competition for labor is tightening with fewer people seeking jobs. There are more positions unfilled, particularly for highly-skilled labor, making the market more competitive. To continue to attract the best talent, businesses will have to be proactive, offer competitive benefits packages, and in some cases, be willing to offer more flexible work schedules.

Trending Finding the Best Talent

One of the ways some companies may opt to find the best talent is to take advantage of remote work environments. Thanks to the increase in technological advances, it is possible to have a breadth of employees without having to be concerned about expanding an existing facility to house them. Outsourcing of web design, marketing, and customer service is likely to be a trend that continues well into the next decade. This option allows a business owner to make use of talent for short-term or long-term projects without having to offer rich benefits packages or take on the added expense of housing employees daily.

Technology Challenges to Meet Head-on

The EU General Data Protection Regulation (GDPR) is likely to gain popularity across the United States which will force businesses to comply with new technology requirements. This will likely be as a result of continued cybercrime and data breaches which will occur in every sector. Businesses must be prepared to ensure their customer data remains secure which will ultimately mean needing capital to meet these demands.

Challenges with Tariffs, Trade and Stock Market Volatility

There is currently a great deal of concern over tariffs and trade deals. This has resulted in a great deal of stock market volatility. Fortunately, consumer confidence, and business confidence seems to be high and this should help stabilize the markets over the short-term. There is some concern that withdrawing from existing trade agreements and entering new ones could potentially create problems for some businesses, but in most cases, these fears appear to be unfounded.

Banking Relationships Will be Key

Because businesses will continue to require capital, relationships will continue to be a key component for many businesses. Unfortunately, small community banks are still feeling the crunch of regulations despite record profits posted during 2018. Credit unions trends are beginning to do more business lending, particularly since they do not have the same requirements as community banks or larger banks. These changes will still have an adverse impact on small and mid-sized business which often cannot meet the criteria established for business loans. Changes in SBA loans will also continue to have an impact on these businesses.

Finding the Right Funding Programs

As business owners find a need to expand their staff, meet data protection needs of their clients, and expand their marketing, cash flow will become even more important. One of the best ways a business can meet these challenges is by avoiding debt while getting the capital that is so important to their continued growth and viability. This is when spot factoring, and other unique financing solutions will play a significant role for small business.

Capstone Capital Group can help small and mid-sized businesses meet their cash flow needs. We are committed to reviewing your business model and creating a financing package that best meets the needs of every business we work with. We understand the need for ongoing cash flow to meet your business needs and we are prepared to help you find solutions that work for your business. If you would like Capstone to review your company’s working capital requirements or would like more information about Capstone Capital Group, please contact us by filling out our online contact form. You may also contact us directly at us at 347-410-9894 to speak with a representative today.

 

A Look back At 2018 Business Growth In America

13:13 23 January in Blog, News

During 2018, more than 70 percent of all small business owners reported a profitable year. While small business owners continue to face some struggles, this type of report means they are more optimistic going into 2019. Addressing some of the challenges they will face in the new year is a necessity. The two primary concerns facing small businesses going into 2019 is financing and securing qualified employees.

Addressing the Employment Gap

One of the interesting bits of information about small business formation is that the boomer generation continues to be the largest contributor in terms of opening small businesses. In fact, more than one-half of all small businesses are owned by someone over the age of 50. This means they must appeal to the younger generation, specifically the newest generation entering the workforce, Generation Z.

The current base of job seekers is more tech savvy than most of the prior generations given they have grown up in an environment dictated by technology such as smartphones. This generation also watched their parents struggle through the most recent recession, has more interest in a steady career path, and are more competitive than generations before them.

For small business owners, this can present many challenges including using the right tools to attract these qualified individuals and more importantly, retaining them once you have hired them. This will continue to be a challenge as more technology develops, however most Gen Z employees will remain within a company if they are well-paid, are enjoying job security, and working in an environment that embraces change and technology. Business owners will have to have a meaningful recruitment and retention plan for their business if they wish to continue thriving into 2019 and beyond.

Addressing the Financial Challenges of Small Businesses

Currently, about 37 percent of all small businesses are profitable. This is great news, but in order to remain competitive, businesses must have access to capital. During 2018, the Federal Reserve raised nominal interest rates four times, meaning interest rates are the highest they have been since January of 2008. While these increases may fairly represent a better economic outlook overall, it has increased the uncertainty associated with obtaining small business loans.

When interest rates increase, lending institutions tend to tighten their loan criteria. Additionally, the cost to borrow increases, even for many small businesses who are already carrying loans since these loans tend to have adjustable rates. Finally, higher interest rates often mean consumers spend less to meet their debt obligations. This means small and mid-sized business owners must find more creative ways to access the cash flow they need to sustain their businesses going forward. Cash flow allows a business to tackle the need to hire qualified employees, build up their inventory to meet increasing product demand, and increase their marketing to remain competitive. This is when Capstone Capital Group can step in and help you meet the challenges of financing head on.

Innovative Financing Solutions

Since no two business owners have the same financing needs, Capstone is proud of the fact they can offer a variety of services designed specifically to provide businesses with the capital they need to continue growing. Some of the programs offered include:

  • Invoice factoring
  • Construction Accounts Receivable Factoring
  • Minority business funding
  • Purchase order financing
  • Trade financing

Our goal is to find a way to help your business, which means finding a way to get to ‘yes’ when it comes to addressing your cash flow needs. We take the time to review your entire business model, understand your unique financing needs and put together a financing proposal that meets your needs while keeping you from taking on additional debt in many cases. Capstone Capital Group to review your company’s working capital requirements or get information about Capstone’s financial services, please contact us by filling out the form on our website. Alternatively, you may contact us directly at us at 347-410-9894 to speak with a representative today.

Funding Opportunities and Small Business Industry News

10:34 14 January in Blog, Business Funding

As the year approaches the end, it is time to focus on what steps we could be taking to increase business during 2019. On this front, there is plenty of good news for small businesses, particularly those who are designated as minority-owned, those businesses which have a HUBZone designation, or Service-Disabled Veteran Owned.

Increased Government Contracts May be Available

The U.S. Treasury Department recently released information about the potential of increased contracts during Fiscal Year 2019 for businesses with the previously mentioned designations. This is great news for those businesses who wish to start doing business with the federal government since this is a great way to grow your business.

Understanding the Designations

Small businesses may not be aware they could be eligible for prioritization to win government contracts. Here are the descriptions of each of the categories where your business may have priority over other businesses when it comes to bidding, and winning government contracts.

  • Minority-Owned Business — a small business where the ownership is at least 51 percent controlled by a minority population may request minority-owned designation. Minority is defined as those identifying with specific groups including Asian, Black, Hispanic and Native American.
  • HUBZone Designated — small businesses located across the United States may be surprised to learn they are in a HUBZone. Currently, the commitment is that at least three percent of all government contracts will be awarded to businesses who fall into this category.
  • Service-Disabled Veteran-Owned — these businesses are owned and operated by one or more veterans who have service-related disabilities. Another important note to be aware of is the day-to-day operations must also be managed by a veteran. Overall, there is a commitment to award three percent of contracts to small businesses meeting this criterion. This is in addition to the commitment made by the Veteran’s Administration utilizing the Veterans First Contracting Program.

Rising Wages, Low Interest, Greater Competition

More small business owners are being forced to consider increasing wages because of the tightening labor markets. However, this is not necessarily bad news since interest rates are still well under control. Thanks to some regulations being modified, there is also a lessening of restrictions on small businesses.

During October of 2018, most small business owners believe it is a good time for them to continue to increase hiring, invest more in their businesses and many have experienced greater sales. While this is all positive, most small business owners still feel access to capital is one of the challenges of operating their small business.

Financing Your Growth

Fortunately, small businesses, particularly those who wish to do business with the government have options. Businesses often need additional resources to place successful bids, which in many cases, may be out of reach for a small business owner either financially, or simply due to a lack of contacts.

Capstone Capital Group can help! We have experience helping small minority-owned businesses get the credit they need to grow their business. We also offer a range of services designed to help you get the resources you need to successfully bid on government contracts.

We have helped with non-legal contract reviews, providing bid support letters, and helping minority-owned businesses get the accounting, estimating, and engineering referrals they need to support their bid.

For more information on Capstone’s diverse funding programs, please contact us at (212) 755-3636 to speak with a representative today. Our highly trained, professional representatives will work with you to obtain a minority business loan and start growing your business today. Let us put our years of experience to work and help you grow your business in 2019.

Government Funding for Small and Large Businesses

08:18 07 January in Blog, Business Funding

Business owners are not always aware of the various loans and programs offered by the government to provide business funding. While not every business will qualify for these programs, it is worth your time to investigate the potential opportunities for your business, regardless of the size.

Here are some of the most common opportunities you should be aware of if you are searching for funds for your business or if you are looking to buy one.

Small Business Administration (SBA) – whether you are starting a business for the first time, your business is in a designated disaster area, you are considering expanding or you need help with exporting, the SBA is a good option.

S. Treasury Department — if your business is promoting economic growth and providing the opportunity for new jobs, there is a program called the Small Business Lending Fund (SBLF). This program is administered by community banks and community development loan funds.

U.S. Department of Agriculture (USDA) — businesses which are located in rural and urban areas where the population is less than 50,000 people may qualify for loan guarantees under this program. Funds may be used to refinance debt, purchase equipment or real estate, or acquire another business entity. There are restrictions on this program, but the program is worth looking into.

Technology Funding — these programs are designed to partner small and large businesses and help launch new, innovative products. The specific programs are known as Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR). These funds are often awarded in the form of grants and/or contracts with NIH and other government agencies including DoD.

General Federal Government Programs — every business should remain abreast of the offerings of the federal government in terms of financing. In some instances, there are loan guarantee programs which make it easier for you to secure a loan through a local bank. In other cases, there may be grants available which would give your business the opportunity to test new products.

State Level Programs — nearly every state offers business owners opportunities. Whether these opportunities are in the form of tax incentives, opportunities for contracts with the state, or special financing opportunities, you should check the programs offered by your state. Keep in mind, there are several states which also offer incentives for businesses who intend to provide a certain number of jobs. In most cases, you need not have your primary business located in a specific state to take advantage of these programs.

Business Funding Solutions for Companies

For many business owners, there are limited opportunities to take advantage of government funds. For example, construction companies, franchisees, and licensees may have business models that are not conducive to government funding programs. This does not mean you are without sources to capital, in fact, this is when you should consider contacting Capstone Capital Group.

At Capstone, we understand every business needs access to capital in order to fund growth. We are also aware that many businesses struggle through seasonal differences in business. This is why we take the time to understand your business, determine your short and long-term funding needs and develop a program that works to meet your growth goals.

We have helped small and medium-sized businesses get access to the funding they need even when they may not qualify for government funding either in the form of direct capital or loan guarantees. We can help with a broad range of financial services including spot factoring, letters of credit, and purchase order financing.

You should never let the lack of immediate capital slow down your growth potential. Contact Capstone Capital Group today at [email protected] or call us at (212) 755-3636 and speak with one of our representatives about designing a financing package that works for your business.

Safeguard Future Growth for Your Small Business in this Booming Economy

05:26 31 December in Blog, Business Funding

 

During times of strong economic growth, it is easy to lose sight of the fact that eventually, we will see a slow-down. There are some steps you can take today which can help you during the next economic downturn by taking advantage of the current booming economy.

Tackle Your Outstanding Debt

One of the best ways to prepare for the inevitable downturn in the economy is to take care of your debts while the economy is booming. Handling your debt now can help prepare you when business starts slowing down. You will be in a better financial situation if you have less debt.

Consider Upgrading Equipment

Every business depends on their equipment operating successfully to meet customer demand. If you have business equipment which is no longer operating at peak performance, this is the best possible time to consider upgrading. Whether you lease or buy, upgrading will prepare you to better meet your customer’s needs.

Review Your Business Plans and Goals

If you have not recently reviewed your business plan, this is the ideal time to undertake that task. You should be looking at how you have met the goals you initially laid out, and if you have missed any of those goals, determine why. This is also a good time to review your plan for possible diversification opportunities. Keep in mind, the more diversified your offerings, the more likely you will to thrive in a future recession.

Hire the Best Talent

Today, while your business is facing a strong outlook is the time to find the right talent you may need tomorrow to continue to grow your business. This is particularly important if your business goals have changed slightly. Since the labor markets are tight, this process may take longer than you think.

Explore New Opportunities

This is a great time to increase your marketing and expand your footprint. During a booming economy, you can identify new markets, new customers and begin negotiations. Each of these steps will help you increase your business and safeguard your future growth.

Do an Internal Processes Audit

Take advantage of the booming economy to see where you can improve your business processes. The time you spend today to make sure you are maximizing production while maintaining the highest level of quality can help ensure that when the inevitable slow-down occurs, you are positioned as a leader in your industry.

Position Yourself for Future Funding Needs

Even though you may not need funds to manage your cash flow today, you can prepare yourself for the future. One of the biggest pitfalls to business growth is having access to the capital you will need. While you are encouraged to pay down debt during an economic boom, you should plan for your future funding needs during the same time period.

You may be unaware you do not have to take on new debt in order to finance future business growth. In fact, there are numerous options you can use including invoice factoring, purchase order financing, and more. Since you will be hesitant to take on new debt once business slows down, now is the right time to begin preparing for your future capital needs.

Capstone Capital Group has a dedicated team committed to helping businesses achieve their goals. We can help with a range of financial solutions and help you take advantage of the opportunities you have during a booming economy. We can also help provide solutions which will help you through periods of slow growth when cash flow is challenging. Remember, a booming economy will not last forever. You can take steps today to ensure when this latest boom starts slowing down that your business will be prepared.

 

2018 Facts for Small Businesses

15:56 03 December in Blog, Business Funding

 

There are more small businesses in the United States than most people know. Current estimates are there are 30 million businesses classified as small business.  There are more than 57 million people employed by small business owners, making small business an important part of our overall economy. It is estimated small business accounts for more than 60 percent of overall job growth in the U.S.

Geography of Small Businesses

Every region of the United States has small businesses. However, the South and Mid-Atlantic are home to nearly 50 percent of all small businesses while New England and the Farm Belt account for only 10 percent. Keep in mind, by definition, small business is defined as any company employing fewer than 500 employees.

Financing Challenges Associated with Small Businesses

Nearly one-quarter of all small businesses fail to obtain sufficient levels of financing. When you combine this statistic with the decline of banking institutions in the country, this is a sobering statistic. During 2017-2018, 271 banks closed their doors. This means small business owners often had to elect to find alternative methods of financing their businesses.

Impact of Financing on Small Business

Small businesses have always faced financing challenges, particularly during their first few years. Some of the options they have used include:

  • 32 percent depend on company earnings
  • 31 percent depend on credit cards
  • 15 percent depend on large banks
  • 14 percent depend on community banks
  • 13 percent depend on loans from friends and family

When a small business cannot obtain the funding they need, they are faced with difficult decisions. Some of the ways business owners respond to a lack of funding include turning down sales, cutting employees and slowing their operations or growth. Since so many small businesses exist, this could spell trouble for the larger economy. In most cases, one of the primary reasons given for closing the doors on a small business include lack of financing.

Small Business Diversity Statistics

Small business across the country account for nearly 50 percent of all employees. There are a staggering eight million firms that are considered minority-owned. More than 250,000 businesses are considered small business exporters as well.

Challenges Funding Import/Export Transactions

Because of the number of small businesses involved in trade, it is easy to assume they face more than their fair share of challenges when it comes to obtaining funding. This is true at most stages of an export business because there are numerous components including logistics.

Fortunately, Capstone Capital Group can help these businesses by providing a broad range of services to help with export financing. We understand how to structure the right type of transaction to help with financing, provide logistical support when needed, and help you with other aspects of these transactions. We understand how important this is for your continued business growth and that is why we offer customized trade financing solutions designed to meet your needs.

Minority-Owned Business Solutions

Despite the number of minority-owned businesses across the United States, many of these businesses suffer financially because of a lack of resources. There are hundreds of studies showing a minority business owner can still face hurdles when seeking financing options. Like every business owner, a minority must have access to public and private funding sources to help them growth and allow their business time to thrive.

This is when you can count on Capstone Capital Group. We take pride in the fact we have worked with various minority-owned businesses to help them overcome their financing challenges. Thanks to the efforts of our diversity team, we can provide a range of financing solutions to help minority-owned businesses the opportunity to find a solution that best meets their needs.

Small business owners need not borrow money on their high-interest credit cards, reduce their employee count, or turn down potentially lucrative contracts. Instead, contact an experienced member of our team at (212) 755-3636 to speak with a representative today and let us help you get the funding you need.

 

 

Download: Infrastructure Investment & Jobs Act – Contract Opportunities and Funding Analysis

Capstone wants your business to take full advantage of the opportunities (or use projects) available through the Infrastructure Investment & Jobs Act recently signed into law.

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