5 Tips for Finding the Right Financing Partner

Your business needs financing, now where do you turn? With numerous options for types of financing and types of companies offering them how do you know which will be the right one for you and your business? We have taken our many years of experience helping small to medium-sized businesses get the right financing for their business and put together five tips to help you find the right financing partner.

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Leveraging Your Accounts Receivable

Every month your business sends out invoices and then just has to wait and wait and wait for them to be paid.  You sometimes get the feeling like they are just sitting there collecting dust even though you have expenses you need to cover such as payroll, rent/mortgage, and your electric bill. An unpaid invoice is just an unpaid invoice, right? Wrong, there are ways you can leverage your accounts receivable to put them to work for your business, so they don’t just collect dust.

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Federal National Commercial Credit Announces New Website Launch

Federal National Commercial Credit, an alternative lender, providing working capital solutions to small and medium-sized businesses across various industries, today announced the launch of a newly revamped website. This redesigned site offers quick and easy access to essential company information while offering a comprehensive understanding of the FNCC’s value proposition and overall client benefits.  The website also offers updated information on company and industry news, recent fundings, our referral program and management biographies.

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Helping Small Businesses Grow Is What We Do

Every day at Federal National Commercial Credit we help small businesses grow. I recently had the good fortune of seeing this first hand when I attended a ceremony during which our client, who is the owner of a government contracting firm, was named the U.S. Small Business Association’s Small Business Person of the Year.

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How is Asset Based Financing Different from a Bank Line of Credit?

There comes a time for every business when they need additional working capital. Where do businesses go when they are in need of financing?  Typically, the go the bank.  A common way to get access to funds is through a traditional bank line of credit. However, there are additional options available when a bank line is either not accessible or does not adequately meet your needs. If you have been searching for an alternative, you may have heard the term “Asset Based Lending,” “ABL,” or “Asset Based Financing” and may be wondering what it is, how it can help you and how does it compare to a bank line? The differences can be quite significant, so let’s take a look at what they are.

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Advantages and Disadvantages of Factoring

Cash flow is central to the success of every business. As a business grows and needs to speed up cash flow, small businesses typically first turn to banks for financing. However, with tough credit standards banks cannot always fully accommodate a company’s financing needs. Alternative financing options, such as accounts receivable factoring, may provide the working capital the business needs.

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Working Capital Financing for Companies with Government Contracts

For many government contractors, there are two key times when they start to worry about how they are going to get the working capital needed to support their contract:

1)   Once the celebration concludes from winning the latest government contract.
2)   When you are getting ready to bid on the next big government contract.

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The Financial Personal Guaranty – What It Is and What It’s Not

Most small business lenders, whether they are banks, asset based lenders, or invoice factors, require some form of personal guaranty from the owners and/or executives of the borrowing company.  I find it is one of the most common new borrower objections.  But it is surprising how many borrowers misunderstand the way guaranties work and why so many lenders require them.  Here are some of the important common misunderstandings and some thoughts about them:

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What are UCCs and Do You Have Them?

I am having a bit of fun with the title to this article making UCCs sound like some kind of social disease. Many people regard UCC filings as little better. But UCC filings and the Uniform Commercial Code (“UCC”) that supports them are at the very heart of most financing in our economy and, without them, we would be an economic back-water. Lenders would not be nearly as plentiful, willing and aggressive.

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Adam Keck Joins ​Federal National Commercial Credit

Federal National Commercial Credit is pleased to announce that Adam Keck has joined the company as a Senior Business Development Officer in the Southwest and Colorado markets. Adam has over 15 years of experience in both the commercial finance and banking industries.  He is a member of the local chapters for ACG and RMA and is a founding board member of the Phoenix Chapter of the AM&AA. Prior to joining FNCC, Adam was responsible for new business development in the western region for both commercial finance and factoring companies. Mr. Keck began his career at Wells Fargo Bank and is a graduate of Northern Arizona University. 

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How to Shop for a Factoring Company

You may have exhausted your options at the banks in town and you could start to lose valuable business if you don't get some financing soon. Maybe you have received bank financing but because you've had a tough year the bank says you no longer fit their lending guidelines. Or maybe you have a good relationship with the bank and you are looking at some strong growth, but the bank has given you all they can. Before you get to this point, it is appropriate to shop for non-bank financing alternatives, such as selecting a factoring company or an asset based lender. Alternative finance is an unregulated industry. Prices, service quality, and reliability vary widely. Pricing may vary from 10 to 40 percentage points above the Prime Rate (nominally, the rate banks offer their most creditworthy customers) so the savings to be gained from smart, old-fashioned comparison shopping can be considerable.

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Invoice Factoring or Asset Based Lending - Which is Better?

There are some important differences between Asset Based Lending and Invoice Factoring, often referred to simply as “Factoring”. For many borrowers, however, the differences may not be relevant and conventional wisdom about their differences can be misleading. This post summarizes key similarities and differences to help borrowers find the best financing solution for their business and to help trusted advisors guide their clients.

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What does the Federal Assignment of Claims Act do?

The Federal Assignment of Claims Act, or “FACA” as it is often known, establishes the way lenders may arrange for payments under federal contracts to be irrevocably paid to them in support of loans made to the contractor. In short, if the borrower’s primary collateral is accounts receivable under a federal contract, this is the only way under the law for the lender to control the collateral. The Federal Assignment of Claims Act first became law in 1937 and established a road map for federal contractors to finance their activities under federal contracts.

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5 Ways of Financing Your Growth

Let's talk about five ways of financing your growth along with opportunities and challenges for government contractors when winning a new contract award. The good news is there are effective strategies and techniques for financing new and/or rapidly growing businesses. Each with it's own merits and appropriate role, common features, and prevailing pricing. When you examine these factors you can efficiently evaluate your government contract funding needs, identify worthy providers, win sizeable line commitments, and command the best rates.

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Kysha Pierre-Louis Has Been Appointed as Chief Credit Officer

Federal National Commercial Credit (FNCC) is very pleased to announce that Kysha Pierre-Louis has been appointed to the role of Chief Credit Officer. Joining Federal National in 2015, Mrs. Pierre-Louis brings over 20 years of experience in Asset Based Lending, Commercial Finance, Corporate Banking and Business Banking. Before joining Federal National Pierre-Louis worked at HSBC in Corporate banking, managing a $900 million Asset Based Lending portfolio of National and International, Fortune 500, Fortune 100 and larger corporate companies. While at HSBC, she also served as Co-Chair of the Women’s Network and was selected as the 2011 Diversity Ambassador.  Mrs. Pierre-Louis holds a B.A. in Economics and Government from Smith College, is the Vice president of the PTA board and a past Board Member of the Prince Georges County Chamber of Commerce.

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Thinking Differently About Alternative Financing Options

It is time to think differently about alternative financing options! I would like to highlight banking criteria for loans, show you why many small business loans are declined and offer insights into the opportunities and risks inherent in alternative financing solutions.  

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Understanding the Federal Assignment of Claims

When researching government contract funding, it is key to pick a lender that knows government processes well, including the Assignment of Claims. The Federal Assignment of Claims Act created the process by which a “Financing Institution” may collaborate with a government contractor to have the contractor’s payments under prime contracts paid by the government customer directly to the Financing Institution.

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Government Contractor Factoring is Mainstream

Nearly every newcomer to commercial or government contract factoring as well as to asset based lending services worries whether or not their business will be stigmatized because it is using these specialty finance services. Quite the opposite is true. These are such commonly used forms of financing that a professionally delivered specialty finance service rarely draws much notice from customers. Ironically, the bigger and more sophisticated the customers are, the less likely they are to care or even notice that a supplier’s invoices are assigned to a finance company. It just gets routinely handled in accounts payable.

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The Hardest Part of Great Service

Competition is more fierce and more global than ever before. Whether we are talking about working capital for growing companies, medical services for women, or guiding river rafting trips. 

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Four Recent Fundings Have Been Announced

Federal National Commercial Credit (FNCC) is pleased to announce the recent funding of these new clients.  These companies represent a sample of the types of creative financing solutions provided by Federal National.

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How Government Contract Funding is Different

As a government contractor, it is sometimes tempting to think it is OK to enter into a borrowing relationship with a financing company that doesn't seem to understand or doesn't understand federal government contracting well. After all, "Why should it matter as long as you get your money?"

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​Federal National Commercial Credit Announces the Recent Funding of a $4,000,000 Asset Based Line of Credit

Federal National Commercial Credit is pleased to announce the recent funding of a $4,000,000 Asset Based Line of Credit, with a $2,000,000 Inventory sub-limit, to a Southern California based wholesale distributer.  The company was seeking to replace their existing credit bank line.  After other bank options failed, the Federal National team was able to provide a structure that the met the companies borrowing requirements.  Federal National recognized the opportunity and provided a new credit facility that will allow for improved working capital as the company realizes its growth potential.

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Rhonda Clarke Promoted to Operations Manager

Federal National Commercial Credit is pleased to announce that Rhonda Clarke has accepted a new position as Operations Manager. Ms. Clarke has been a key contributor to the Federal National operations team for a number of years. Over the years Ms. Clarke’s knowledge, demeanor, and leadership have been instrumental in leading Federal National through a variety of transitions.  Her focus on service has set the standard for both clients and co-workers.  As the company continues its expansion plan, this new role will be vital to the companies continued success.  

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How Accounts Receivable Factoring Works

Federal National's accounts receivable factoring lines function as revolving facilities. They are easier to use and more flexible than many bank lines of credit. 

Case Study: XYZ Company, a service provider to large corporations and government entities

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Relieving Stress with Cash Flow Planning

Cash flow planning and other financial reporting tasks are often the last things that entrepreneurs and small business owners want to tackle. They can be time-consuming and are usually not why you started your business. However, these reports are a vital tool when it comes to the financial health and success of your business. When they are done regularly and correctly, they can also help you understand what you make, what you owe and what financing you may need - hopefully relieving some of the stress of running a small or medium-sized business. 

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​Federal National Commercial Credit Announces the funding of a $2,500,000 ABL Line of Credit to a Temporary Staffing Company

Federal National Commercial Credit (FNCC) is pleased to announce the recent funding of a $2,500,000 ABL Line of Credit to a 3-year-old Temporary Staffing Company located in Southern California.  This new client was in need of a larger credit facility and a more advanced lending structure than what their current lender was providing.  FNCC was able to recognize the opportunity and provide a new facility that will provide adequate working capital as the company realizes its growth potential.

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Todd Waldrip has Joined FNCC as a Senior Business Development Officer in Birmingham, Alabama

Federal National Commercial Credit is pleased to announce that Todd Waldrip has joined the company as a Senior Business Development Officer in Birmingham, Alabama. Waldrip has cultivated an extensive network in the south-east. His history of success arises from his thoughtfulness and experience in crafting financing solutions for small and medium-sized businesses. Mr. Waldrip’s primary market consists of Alabama, Tennessee, and Mississippi though he assists clients nationwide. Before joining Federal National, Mr. Waldrip worked at Crestmark Bank, Summit Financial Resources, Advance Financial Corporation, and Regions Bank. 

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