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.

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.

Put Your College Degree to Work on Our Team

07:54 17 August in News

You need not have a degree in Sales Management, or Accounting to take advantage of this great opportunity; our program is designed to help you learn these skills, regardless of the degree you earned. We have an opening for a Financial Analyst and Management Trainee to join our team of dedicated professionals at Capstone Capital Group, LLC.

This is a great opportunity for someone who has at least a Bachelor’s Degree, has above average communication skills, and has basic computer skills. You will learn new skills, be part of a dynamic group of coworkers, and have the opportunity to help small and mid-sized business owners meet their financing needs.

If you have ever been interested in pursuing a career in the Commercial Banking & Credit industry, this is the opportunity you have been waiting for. We are looking for self-motivated individuals who have the willingness to actively participate in our rigorous training program.

We have an opening for a Financial Analyst in our Management Training Program to join our team of dedicated professionals at Capstone.  If you have ever been interested in pursuing a career in the Commercial Banking & Credit industry, this is the opportunity you have been waiting for. We are looking for self-motivated individuals who have the willingness to actively participate in our structured training program.

To learn more about our Financial Analyst and Management Training Program, please visit us at here.

Why Join Capstone?

Capstone is a private company offering financing to those businesses who face cash flow problems. We are offering you the opportunity to help businesses succeed in competitive marketplaces. We will provide you with the tools needed to evaluate business needs, review funding opportunities and create proposals tailored to the individual needs of the client.

Our dedicated team members know we promote from within because we believe when our employees succeed everyone benefits. This is the same philosophy we use with every customer. You can be part of a dynamic, diverse team of leaders who can identify customer needs, even when the customer does not know what those needs are or fails to share them.

Whether you are a new graduate, or you are simply ready to change your career focus, the Financial Analyst position in our Management Training Program may be right for you. We offer a competitive salary, opportunity for promotion and the right environment for those who are interested in both professional, and personal growth.

Contact us today and find out more about our Financial Analyst and Management Trainee program and Capstone. You have nothing to lose, and a bright future to gain.

The Role of the Financial Industry in Rebuilding After Hurricane Harvey

11:00 12 October in News

Some of the leading scientists have estimated the cost of Hurricane Harvey’s trek through Texas could result in some $160 billion in damage. Homes, businesses and ports suffered serious damage; the rebuilding process could take months, and in some cases, could take years.

Many Firms Offering Donations

While many financial, and payment firms have currently stepped up and offered donations to the Red Cross, offered to match donations made by employees, and other efforts. Many payment processors have provided free equipment to businesses to enable them to take payments, reduced fees on donations, and taken other steps to help.  Banks and credit unions have also received some guidance to consider waiving bank fees, increasing ATM withdrawal limits, and more. But there may be more the financial community can, and should do to help business owners get back on their feet.

Relief For Home and Property Owners

As many readers recall, during the financial crisis, homeowners were unable to make mortgage payments in light of increasing interest rates, and slipping home values. Imagine being told you need to continue making your mortgage payment while your home is a cesspool of water, mold, or has no roof. To enable homeowners an opportunity to file insurance claims, get back to work, and rebuild their homes, the major mortgage insurance providers including FNMA, VA and the FHA have stepped up their efforts to help homeowners and property owners. There are various forms of relief available depending on the lender’s willingness to help including temporary foreclosure relief, payment deferments and credit maintenance assistance. These temporary measures may be sufficient for most Texas property owners to claim their insurance and begin the difficult process of rebuilding, or rehabilitating their homes.

Business Lenders and Their Role

Lenders who focus on small, medium or large businesses also have a role to play in rebuilding in Texas after Hurricane Harvey. Businesses that were devastated need time to rebuild, get their businesses back on track, and increase their inventory. Businesses in Texas have a lot of work to do from discarding damaged inventory, making structural repairs, and in some cases, helping their employees get back on their feet.

Businesses with loans may be asking for forbearance on payments, seeking additional lines of credit to fund needed repairs, and need money to rebuild their inventory. Many offices, and factories suffered extensive damage; there have been some companies that have offered temporary office space to help these businesses get back to work.

Some of the options lenders can offer include:

  • Modified credit requirements – since many businesses are unable to provide documentation on income, lenders may wish to consider lessening the requirements for obtaining new credit. Businesses can likely get prior years’ tax returns to show their income, but chances are high their documentation for the last 12 months will have been lost.
  • Renegotiation of terms – since businesses will take some time to rebuild and return to full operation, lenders may wish to consider renegotiating loan terms to allow missed payments during the rebuilding period. This type of assistance can make the difference as to whether a business can return to full operation.
  • Expedited processing – the loan process can be time-consuming and one luxury many business owners to not have is time. Money is needed to meet the demands of repairs, help ensure employees, many of whom are rebuilding their lives, are paid on time and that replacement equipment can be purchased as needed. Time is of the essence and lenders who can process loans quickly can help business owners get back on their feet faster.

Options for Business Owners

Businesses may see an increased demand for materials, products and services over the next several months as other businesses return to normal operations. However, this means more businesses than ever are going to need access to capital; it is often difficult to meet the demand of clients unless a business has immediate access to cash; it is necessary for every aspect of your business. You are going to need cash to pay employees, obtain raw materials, pay for shipping, etc. This is where Capstone Capital Group may be able to offer assistance to businesses in Texas, and those in Florida who are now facing the same type of devastation Texas faced a few weeks back. We provide a range of products designed to meet the needs of nearly any type of business including trade financing, invoice factoring, construction financing and factoring, etc.

During this period of rebuilding, Texas contractors will be assisting in the rebuilding of retail stores, office buildings, warehouses and more. We have specific programs designed to help contractors and sub-contractors get the cash they need in a short period of time. We offer fast approvals, we understand the challenges many businesses are facing during this period of rebuilding and we can help customize a solution that works to meet your needs.

If you are business owners, or a contractor in Texas, or any other area devastated by weather-related disasters and you need quick access to capital, contact Capstone Capital Group today and let us see if we can help you get back on a sound financial footing.

 

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Capstone Capital Group, LLC wants to help you make sure your planning is flawless, which is why we are offering these free guides to help you get back to business on a sound financial footing.

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