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.


About US Manufacturing - Capstone Financing

4 Things You Didn’t Know about US Manufacturing

09:37 15 July in Blog

As we discussed in a recent blog, US manufacturing is alive and well—despite what many people may think. Following up on that piece, we are happy to give yet another positive update from the manufacturing sector.

The stars have aligned for US manufacturing in July, with domestic demand strengthening and offsetting the relative strength of the US dollar. US manufacturing activity hit a 9-month high in July, dispelling fears that the UK’s decision to leave the EU would hurt the already poorly performing sector. Factors that are boosting US manufacturing activity include a strong housing market, strong automobile demand, and solid consumer spending: all of which help to increase spending on manufactured goods.

US Manufacturing: Down and Out or Just Different?

It’s true that today’s manufacturing landscape is quite different from that of 1950. It’s even changed significantly since the year 2000, having shed 5 million jobs since the turn of the century. But what many people don’t realize is that it’s not only US manufacturing that’s being transformed. Technological advancements have made it possible to increase production with fewer workers. The end result is a strong (albeit much quieter) manufacturing sector that increasingly relies on tools like invoice factoring to increase working capital and expand business.

Surprising Facts about US Manufacturing

Here are four things you probably didn’t know about US manufacturing.

  1. Most US manufacturing firms are small; 75% have less than 20 employees, and 99% have less than 500.
  2. The US boasts 12 million manufacturing workers —9% of the entire workforce
  3. The average manufacturing worker earned over $4 more an hour than the US average — $25.58 compared to $21.32.
  4. Many manufacturing companies use invoice factoring to boost cash flow and expand their business

Boosting Working Capital with Capstone

For qualified clients, Capstone provides single invoice and contractor factoring for work performed under contract with credit-worthy accounts. We have highly experienced professionals on staff to facilitate the purchase of work in progress and progress billing-related accounts receivable. Please visit our homepage or contact us directly for more information.

Money Makes the World Go Round: How technology & globalization will change the face of banking in the future

21:01 24 July in Blog
Technology has always had a way of dramatically changing an industry.  The banking industry is no exception.  According to experts, technology, globalization and demographics will be the catalyst that will drive changes in banking over the next 100 years. 
Competition in Consumer Banking
Traditional consumer banking will come under intense pressure in the future as insurance companies, pension and hedge funds enter the market place offering such products as online savings vehicles, crowd funding and loan syndications. 
Mobile Banking Technology
Experts believe that as mobile banking technology continues to advance, brick and mortar bank branches will become obsolete.  Of the 97,000 bank branches that exist across the U.S today, only a small percentage will actually remain, and may function more like a social gather place where people go to learn about personal finance. 
Global Regulation
As technology drives economic interconnectedness among nations, banking regulations will ultimately become more global rather than national in scope.
Financial Threat Reduction and Future of Physical Currency 
Large data-applications will dramatically enhance the ability of large banking institutions by reducing losses caused by identity theft and financial fraud.  Additionally, suspicious transfers of large sums of money can be detected in real time with the advent of these powerful tools.  Notwithstanding, cyber criminals will nevertheless find ways to game the system which will pave the way for deposit insurance like entities extending beyond traditional banks which will include theft coverage.
Physical currency, like checks and coins will likewise cease to exist in a technology based, global banking system.  As people continue to use hand held mobile devices to conduct banking and other merchant transactions using secure biometrics, the need for physical currency will cease to exist.  Paper currency however will continue to play a small role in global economic society as some merchants may stubbornly adopt a cash-only policy for their own personal reasons.
Increased Interest in Financial Services
In the future, Asset Management will play a significant role in the financial services industry.  This will happen due to a shift in global demographics changing our aging populous from consumers to savers.   Nowhere will this be more evident than in the growing middle class sector.
The middle class will seek out investment opportunities and will seek out professional advice from financial experts. They will value human relations with financial advisers despite technology. Capstone Capital Group, LLC (“Capstone”) also values human relationships.  They too provide professional and expert advice to small and midsized businesses by offering various commercial financing and options.  Capstone specializes in Single Invoice Factoring (“Spot Factoring”) for firms in need of immediate cash. Spot Factoring provides flexible, no contract invoice selling in exchange for working capital from Capstone Capital Group.  Give us a call today at (212) 755-3636 to find out how we can help you.  

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