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Jeffrey Sweeney is an investment banker with years of experience in direct lending and corporate finance for small- to middle-market companies. He is the chairman and CEO of US Capital Partners, an innovator in small- to middle-market business lending. US Capital Partners has been providing prompt, innovative, and reliable financing solutions across the United States and abroad for more than a decade.

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Friday
Dec312010

US Capital Partners News: Small Business Financing Expert Offers Businesses Options for Generating Cash Flow

Hotrod and Restoration Magazine features Jeffrey Sweeney's expertise in "3 Potential Financing Sources for Your Business" As an expert in the business financing industry, I pride myself in being a leading innovator in small business lending. Thus, I'm happy to share with you my latest contribution of creative funding solutions in the article titled3 Potential Financing Sources for Your Business” in Hotrod and Restoration Magazine, the leading resource for retailers, builders, restorers, customizers, engine builders, and other key industry buyers.

According to the article by Devlin Smith, while lending has slowed along with the economy, a recent study shows that borrowing is up among small businesses, and is now at its highest level in nearly two years. This new data may encourage retailers to explore their funding and financing options, which can include cash, credit cards, or credit lines or loans, among others, and investigate the best fit for their business.

An important tactic to consider for generating more cash flow is to look at your payment terms from customers. Businesses want to increase the deposits and frequencies of milestones for payments from clients as higher up-front deposits can help fund the work that’s being done while supporting your working capital needs.

For those who are not familiar, I am the  CEO and Managing Director of US Capital Partners, a private investment bank, direct lender, co-lender, and lead financial arranger that specializes in business loans for small to middle-market companies.

It's critical that we rally behind small businesses and provide them with expert resources for financial restructuring as well as immediate, innovative, and reliable financing solutions. There are many businesses still struggling to stay afloat or finding it difficult to capitalize on upcoming growth opportunities, and contributing to this article was a great opportunity to educate the industry on viable funding solutions.

To read more about small business financing and funding options, visit http://www.hotrodandrestoration.com/business-resources/3-potential-financing-sources-for-your-business/

About US Capital Partners, LLC
Since 1998, US Capital Partners has been providing prompt, innovative, and reliable financing solutions including lending, corporate financing, and debt re-structuring to businesses across the United States and abroad. US Capital is a private investment bank, direct lender, co-lender, and lead financial arranger that specializes in asset-based debt for small- to middle-market private and public companies. The company’s innovative approach allows them to provide the best financing available, not only for companies in excellent financial condition, but also for companies who may have been refused credit by traditional lenders. If you would like to know more about how your business can secure the funding it needs, visit http://www.uscapitalpartners.net/ or call (415) 882-7160.

Tuesday
Dec212010

Happy Holidays from US Capital Partners!

Tuesday
Dec142010

Responsible and Creative Workout Methodology is Vital for Small Business Financing in Light of Recent Loan Crisis

The Federal Reserve recently released details on the $3.3 trillion in emergency loans made during the 2007-2009 financial meltdown. According to CNBC, the findings published included who borrowed how much and what collateral they put up, while shedding light on who benefited most from the central bank's controversial efforts to support financial institutions and credit markets. Read the full article here: Fed Discloses Details of $3.3 Trillion in Crisis Loans.

We are in favor of the Feds past policy of making loans to institutions under severe and in many cases unwarranted pressure during the darkest days of the financial crisis. As we saw during the “exuberant” bubble times, where investors were overbidding assets beyond reasonable expectations, there was a converse and reflexive excessive pessimism during the depth of the downturn.

“Too Big to Fail” Institutions Saved by Creative Workout Methodology 

While the recently released documents remind us of how crippled the financial system had become during the crisis and how much it's recovered since (banks earned $14 billion from July through September this year) they also bring back memories of the confusion and fear exhibited by “talking heads” on pro-business media outlets reporting on the plunge in real time the stock market at that time. The Fed and U.S. government stepped in and did the needful while commentators were either paralyzed or occasionally spouting laissez-faire “Hooverisms”.

Conversely, when the pit of the downturn was pretty clearly seen to be behind us, those same talking heads began to criticize and complain about the methods and scope of the government’s involvement which prevented a depression catastrophe. We disagree with this disingenuous position and think the same creative philosophical workout principals that averted a depression apply in current bank work outs. Rather than take the “traditional” laissez-faire formulaic methodology to have companies exit their banking relationships, we firmly believe a creative approach should be applied.

In fairness, why should the large banks and companies be “saved” by “creative out of the box” thinking and programs that have been shown to be successful and in most cases profitable for the government - and not apply that kind of thinking for small businesses? We are of the opinion a secure, fiscally responsible workout methodology should be reviewed, seriously considered, and implemented by every responsible bank and workout officer.

Responsible and Creative Workout Methodology is Vital for Small Businesses Financing

We are in challenging times economically and financially, and the old strategies used by banks to work out their clients are failing in the current market. Banks that currently lack an effective policy for optimally divesting themselves of large portfolios of bad loans need to embrace a new approach to workouts such as the one recently outlined in The Secured Lender that will accelerate their rate and efficacy, and will optimize the outcome for both the banks and the borrower. These loans, if refinanced, can also provide alternative lenders and private banks with substantial deal flow.  

Small business deserve the same consideration the “too big to fail” institutions received and an intelligent workout methodology that outlines a fair and optimal solution to these necessary workouts. It is understandable these companies need to exit their bank relationships due the banks regulatory requirements. It is imperative the banks behave intelligently and responsibly, within the letter of their regulatory requirements and authority to assist these small companies to exit in a creative, orderly, and optimal way which assures their survival and preserves the many jobs they provide to our citizens.

 

About US Capital Partners, LLC
Since 1998, US Capital Partners has been providing prompt, innovative, and reliable financing solutions including lending, corporate financing, and debt re-structuring to businesses across the United States and abroad. US Capital is a private investment bank, direct lender, co-lender, and lead financial arranger that specializes in asset-based debt for small- to middle-market private and public companies. The company’s innovative approach allows them to provide the best financing available, not only for companies in excellent financial condition, but also for companies who may have been refused credit by traditional lenders.

If you would like to know more about how your business can secure the funding it needs, visit http://www.uscapitalpartners.net/ or call (415) 882-7160.

Monday
Dec062010

Small Business Lending for Entrepreneurs: Financing Start-Ups While Protecting Personal Assets 

With the continued constriction of credit showing few signs of abating in the marketplace, many start-ups are looking for creative ways to obtain financing. For entrepreneurs considering asset loans, it's important to know how to protect yourself when using personal assets to secure a business loan.

I recently read another relevant and interesting article on small business financing in the Wall Street Journal by Emily Maltby titled For Start-Ups, Key Issue is Protecting Personal Assets. It points out that small business lending is a complex field with no simple answers and the markets are not “efficient” in the true macroeconomic view.

This means you may not always get the appropriate type of credit commensurate with your risk profile. This is because one can only practically survey a few lenders due to time and knowledge constraints. What is possible is to understand some high level principles in lending and apply them to each unique borrowing situation.

1. It's important to understand each lender's motivations and capabilities to make loans.

2. Keep in mind your particular risk profile and how that fits the appetite of the specific lender group you are applying to.

Banks, for instance, are mandated to make relatively risk free loans, at appropriately low rates. One definition of low risk is over collateralized, such as a personal guarantee as discussed in the article, demonstrating good credit history, long time in business with stable earnings history and adequate debt coverage.

Then one has to realize it is a bank's duty to ask for as much as possible in the form of collateral, like a personal guarantee, and it is your job (or preferably the duty of a specialized financial advisor) to broadly survey the market and politely negotiate as little collateral surrender as possible, until you reach an “efficient” economic deal.

Here we would define “efficient” as a loan where you are receiving an appropriate loan amount, at a “market” interest rate, and with minimum pledged collateral given your specific risk profile. It may not always be the answer you want, but it will be comforting to know few did better given the same deal parameters.

With the widespread tightening of lending standards, businesses who aren’t a good fit for traditional lending institutions need to look outside the bankable box to private investment banks or alternative lenders who are readily available to help businesses secure financing for appropriate working and growth capital.

If your business currently doesn't fit a bank's lending risk profile, you may be interested in learning more about how to secure Alternative Financing and Small Business Loans for Working and Growth Capital.

If you would like to know more about how your business can secure the funding it needs, visit http://www.uscapitalpartners.net/ or call (415) 882-7160.

Tuesday
Nov232010

Small Business Refinancing Expert Offers Vital Strategy for Intelligent Workouts

“Intelligent Workouts: Embracing a New Paradigm in Small Business Refinancing,” which appears in the Nov/Dec 2010 edition of The Secured Lender sheds light on vital strategies for engineering optimal refinancing solutionsI've recently presented vital strategies for engineering optimal refinancing solutions in the article titled “Intelligent Workouts: Embracing a New Paradigm in Small Business Refinancing,” which appears in the Nov/Dec 2010 edition of The Secured Lender, published by the Commercial Finance Association (CFA).

As CEO and Managing Director of US Capital Partners LLC ("USCP"), a private investment bank, direct lender, co-lender, and lead financial arranger that specializes in business loans for small to middle-market companies, I was thrilled to author this article as it’s a great opportunity to educate the industry on ways to engineer refinancing solutions that are optimal for the exiting banks as well as the borrowers and the incoming asset-based lenders.

I take pride in my passion for providing prompt, innovative, and reliable financing solutions to companies in excellent financial condition as well as businesses that may have been refused credit by traditional lenders. Truth is, banks currently lack an effective policy for optimally divesting themselves of large portfolios of bad loans. These loans, if refinanced, can provide alternative lenders and private banks with substantial deal flow.  

We are in difficult times economically and financially, and the old strategies used by banks to work out their clients are a failure in the current market. Embracing a new approach to workouts will accelerate their rate and efficacy, and will optimize the outcome for both the banks and the borrower. 

To read more about the current challenges facing loan workouts, the role of refinancing specialists and strategies to achieve optimal workout solutions, visit The Secured Lender at http://www.thesecuredlender-digital.com/thesecuredlender/201011#pg22.

About US Capital Partners, LLC
Since 1998, US Capital Partners has been providing prompt, innovative, and reliable financing solutions including lending, corporate financing, and debt re-structuring to businesses across the United States and abroad. US Capital is a private investment bank, direct lender, co-lender, and lead financial arranger that specializes in asset-based debt for small- to middle-market private and public companies. The company’s innovative approach allows them to provide the best financing available, not only for companies in excellent financial condition, but also for companies who may have been refused credit by traditional lenders.

If you would like to know more about how your business can secure the funding it needs, visit http://www.uscapitalpartners.net/ or call (415) 882-7160.