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.



Current Market Conditions are Impacting Business Funding

08:12 21 November in Blog, Business Funding

Stock market corrections, tariffs being imposed, and more job openings than ever before are putting unseen pressure on many small and mid-sized business owners. While many people may not understand how these issues impact business funding, they can, and do have an impact across the board for a business owner who is starting up, or one who is attempting to grow their business.

Stock Market Corrections and Financing

Nearly one-third of small business owners use their credit cards to fund business growth. An additional 13 percent borrow money from friends and family to grow their business. The problem is with rising interest rates, and a significant stock market correction, these funds may be costlier, or unavailable.

Rising interest rates have an impact on credit card interest rates, making this a less attractive option. Stock market corrections have an impact on what liquid assets someone has available since uncertainty in the markets tends to lead to more people fleeing to cash positions. This type of uncertainty may also mean more people are unwilling to spend, or invest in businesses owned by family and friends.

Impact of Tariffs May Not Be Immediate

While some businesses may not feel the immediate impact of the newly imposed tariffs on trading partners, there are many who will feel the impact over time. Initially, those who are involved in import/export businesses may feel the crunch which could put them at a disadvantage. Unfortunately, as with many things, the impact will trickle down to other businesses.

While an import business may feel immediate impact from these tariffs, other businesses, including those businesses focusing on storage of items for export, transportation, and production of materials. Since this trickle-down effect will take place over time, these businesses may experience periods of growth and slow-downs which could make traditional financing harder to obtain.

Job Market Impacts all Business

The job market has shown steady growth for more than four years at this time. This is good news for those entering the workforce but may not be such good news for businesses trying to recruit new talent for expansion. Currently, there are more than seven million job openings across the United States according to the U.S. Bureau of Labor reports issued in October 2018. This number bodes well for job seekers but may not be as positive for those businesses who are considering hiring.

More job openings mean there is increased competition among employers who are hiring. This becomes a job searcher’s market which can mean the cost of hiring is going to be higher. Increased competition means employees can seek better pay, better benefits, or a combination of both, putting more financial pressure than ever on small and mid-sized businesses.

Cash on Hand Will Help Fuel Growth

Small and mid-sized businesses who are concerned about the changes in the market including a volatile stock market, a tightening labor market, and increased tariffs should ensure they have cash on hand to ensure they can continue to grow. While this may seem challenging, it is possible to convert your accounts receivable to cash to make sure you are able to take advantage of opportunities which present themselves. For example, a business may accept purchase orders and be able to collect immediate cash against that order.

At Capstone Capital Group, we understand how various external factors can have an impact on your business. Our goal is to help minimize the uncertainty you could face if you need immediate cash to fulfill a contract, enter into a new agreement, or need to hire new staff members. Contact one of our representatives today, call us at (212) 755-3636. Let us help you fund a custom solution to your financial needs.


Capstone Employee Promotion

Capstone Employee Promotion Press Release

16:38 15 November in Blog, Press Release

Capstone Employee Promotion

Capstone Capital Group, LLC is pleased to announce the promotion of Mariam Russo. Ms. Russo has been promoted from Due Diligence Analyst to Senior Analyst.  Ms. Russo joined Capstone in 2017 and in her current role is responsible for client intake, due diligence analysis, client relationship management, and credit underwriting.  Ms. Russo specializes in valuations, financial modeling, Purchase Order Financing transactions and was also recently appointed to Capstone’s Credit Committee.

Prior to joining Capstone, Ms. Russo served as an analyst for five years in the Brokerage Department of a real estate services firm located in New York City. In her role, she was responsible for developing and managing discounted cash flow and pro forma financial models in addition to real estate valuation models.  These models were used for both acquisitions and lease analysis of various real estate assets in the United States.

Ms. Russo is a graduate of the Zicklin School of Business of CUNY Baruch College where she graduated Cum Laude with a Bachelor of Business Administration in Finance and a Minor in Mathematics.

As a private finance company, Capstone is committed to assisting clients with cash flow issues.  We understand businesses have unique financial needs and we provide specific financing solutions to fit those needs. Some of our products include Purchase Order (PO) Financing, Factoring Services, and International Trade Financing.  We work with businesses offering services and products who bill their customer through “process billing” type contracts, typical for those in the construction trade, publishing, service businesses, suppliers to government agencies, staffing companies, as well as wholesalers. Each of our divisions handle a different aspect of business with one goal in mind: to help our clients grow and remain competitive by ensuring they have access to the capital they need.

5 Things A Small Business Should Look For When Choosing A Brokerage

11:12 07 November in Blog, Business Funding


Small business owners often turn to brokers to help them secure financing. This can be beneficial because generally, a broker will have access to numerous sources of funding which can mean a higher likelihood of securing the funding you need to keep your business operational. Here are five things you should look for when choosing a brokerage:

1. Experience with Your Industry

In some instances, a broker will focus on obtaining financing for businesses which operate in only a few industries. While specialization can be positive, if you are working with someone to secure financing on your behalf, you want to confirm they have an idea of the challenges faced in your field.

Since every business has different challenges, you will want someone who can meet those challenges head on. For example, some industries suffer from annual work slowdowns because of weather-related issues. Others may have increases in work during the holidays. The brokerage you select should understand these nuances.

2. Proven Track Record

You should ask a potential brokerage to provide you with at least one, and preferably more than one reference. The last thing you want to do is work with someone who has no track record. Asking their previous clients about the work that has been done on their behalf is one way to ensure you are working with a brokerage you can count on for results.

While there are many start-up brokerages who will work hard to prove they can process new inquiries, this could cause delays in your ability to get the funding you need, in the time frame you need to have funds available.

3. A Menu of Products

One of the challenges when selecting a brokerage is finding out what types of loan products they offer. If your industry requires various types of funding, for example, loans, accounts receivable, and equipment loans, these are often handled by different types of lenders. Make sure the brokerage has the capacity to work with various lenders.

While some may feel limiting the number of lenders who work with a single brokerage, this could put you at a significant disadvantage. When these types of limitations occur, what happens is you must fit into a specific “box” or it is harder for you to secur

4. Investigate Fee Structure

Another key aspect of working with a broker is how they are making their money. While some brokers are paid a simple finders fee by the lenders they work with, others are adding their fees onto your loan request. This may be done in numerous ways including increasing the interest rate you are paying, adding points, or increased fees such as application fees.

Before you get started with a new brokerage ask about the fees they charge and ask how they are paid. This can be very important particularly if you are looking for a long-term relationship.

5. Communicates Well with Clients

One of the final things you should investigate when searching for a brokerage is their communications with clients. Securing financing in a timely manner is important if you are depending on funding to grow your business, sign a new contract, or hire a new employee. If you are not able to reach your account representative in a timely manner, there could be devastating results.

Finding a brokerage who meets your needs is important. At Capstone Capital Group, we take pride in the fact we work with both direct customers and with brokerages. We offer a wide variety of financing products which many brokers find helpful to meet the diverse needs of their clients. We also have a number of ways for both clients and brokers to contact us so you can rest assured, we will be here to answer your questions or address your concerns.


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