Developer of Baby Care Products | $1,000,000, Refinancing

Our experienced and skilled financial team at USCP was successfully able to secure the $1 million revolving line of credit for a baby care product company because we made it our business to understand their business; in other words, we conducted a thorough survey of the company’s product, service, market, and business model, in addition to their principal net worth, practices we often employ with our clients to accurately determine their needs and the best possible resources to attain those needs. This particular client required timely access to additional working capital in order to introduce new marketing and sales initiatives, and we were able to help by refinancing their current debt with a commercial bank that is in and we were able to provide that for them in a prompt manner.

Based in California, this baby care product company creates, markets, and distributes fashionable products for babies and parents (primarily babies), including luxury blankets, burp cloths, bibs, and hooded bath towels.

To view more of US Capital Partners recent transactions visit our website at www.uscapitalpartners.net/transactions.html.

U.S. Capital Partners investigates all aspects of a company to craft optimum, customized financial solutions for our customers. We are often capable of increasing opportunities to achieve a successful resolution by discovering credit enhancers and ways to mitigate risks to credit. If you or your company are struggling to secure a credit line that could help provide your company the working capital it needs, give us a call at (415) 899-1010 or visit us online at www.uscapitalpartners.net. Our team of experienced professionals is ready to discuss your financing needs with you.

Morgan Drexen, Inc. | $2 Million, Financing

Based in Costa Mesa, California, Morgan Drexen is a software and support service provider to law firms in the U.S. Currently serving more than 50 law firms nationwide, Morgan Drexen offers paralegal and automated administrative support to law firms in a variety of areas, including personal bankruptcy, debt settlement, personal injury, and mass tort litigation.

Our team at USCP was successfully able to secure the $2 million line of credit for Morgan Drexen as a result of a thorough understanding of their service, market, and business model. They are a growing company that is in need of quickly attaining additional working capital for expansion and we were able to provide that for them in a prompt manner.

To view more of US Capital Partners recent transactions visit our website at www.uscapitalpartners.net/transactions.html.

US Capital Partners looks at every aspect of a business to design optimum, customized financial solutions for our customers. We are usually able to increase opportunities by discovering credit enhancers and ways to mitigate risks to credit. If you are struggling to secure a credit line that could help provide your company the working capital it needs, give us a call at (415) 899-1010 or visit us online at www.uscapitalpartners.net. Our team of experienced professionals is ready to discuss your financing needs with you.

Marin A. McElhany – Vice President, Sales and MarketingACG InterGrowth brings together approximately 2,000 business leaders involved in corporate growth, from leading M&A and corporate development professionals to private equity firms. Keynote speakers at the event will include former Secretary of State Condoleezza Rice.

“We look forward to this premiere business and networking event to meet and connect with corporate leaders, other lenders, and middle-market business professionals focused on driving corporate growth,” said Marin McElhany, Vice President of Sales and Marketing at US Capital Partners. “If you are attending the event, please come and find us at table #29. We look forward to meeting our friends and colleagues in the industry.”

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Small-Business Owners Anticipate Growth in 2012 

Small-business owners are feeling decidedly more optimistic this year about the outlook of their own businesses and the overall US economy. According to the National Small Business Association’s latest report, 75% of small-business owners said they are confident about the future of their own business, which represents the highest level of confidence reported in three years. When asked about their expectations for business growth, 47% said they expect growth in 2012, and 17% said their business is growing already. 

Access to Capital is Hindering Expansion

PERCENTAGE INDICATING “YES” TO “IS A LACK OF BANK LOANS AS A POTENTIAL SOURCE OF BUSINESS CAPITAL RESTRICTING...”

Source: Pepperdine University, “2012 Economic Forecast.”

According to a recent survey by Pepperdine University of over 3,100 owners of small and medium-sized businesses in the US, 49% of respondents consider a lack of bank loans to be restricting opportunities for business growth.

This is supported by the National Small Business Association, which reported that financing remains a problem for 30% of small businesses. Among small-businesses for which capital availability has been a problem, 10% have been unable to increase inventory to meet demand as a result, and 16% have been unable to finance increased sales.

How to Secure the Financing You Need

The good news is that there is in fact a wide spread of financing available to small businesses, if they know where to look. That financing is not with the big banks, which continue to restrict lending to smaller companies, but with smaller banks and specialty lenders. 

The small-business lending marketplace is highly fragmented. If you need financing, leading small-business lending and an advisory firm, US Capital Partners, LLC will not only find the right mix of specialty lenders for your business, but will also negotiate and coordinate between them to secure optimal financing for your business. US Capital Partners will structure your financing so that it is scalable, allowing you to access additional capital as you grow.

If you would like to know more about how your business can secure the funding it needs, email Jeffrey Sweeney, CEO and Managing Director, at jsweeney@uscapitalpartners.net or call (415) 889-1010.

This past week our CEO and Managing Director, Jeffrey Sweeney participated in a charity event for the international humanitarian non-profit association, Food for Life.

Food for Life Vrindavan works with the poorest villages in the Vrindavan area south of New Dehli in rural India. The association is recognized by the Indian Government and runs several schools for the poorest of the poor girls.

Jeffrey Sweeney makes a yearly visit to India and works helping to distribute food to children. Poor female Indian children are often bartered into marriage at 10 or 11 years old because the families focus attention on the boys development. These school serve about 1,700 girls.

The fundraising event took place in San Francisco and was a benefit for the Rupa's Girls School in Vrindavan. The event was catered by Kitchenette who provided attendees with organic fresh vegetarian food. Raffle winners won a month of unlimited yoga.

To learn more about Food for Life Vrindavan visit: http://fflvrindavan.org/en/

FED: Demand for Small Business Loans Jumped in 2011

The latest Federal Reserve figures reveal that many banks reported increased demand for loans from smaller businesses late last year. In the fourth quarter of 2011, 26% of respondent banks experienced “moderately stronger” demand for commercial and industrial loans from small businesses, up from 8% in the previous quarter.

Bank Credit Standards Remain Tight

As reported by CNNMoney, the survey also revealed that 94% of respondent banks said credit standards for small firms “remained basically unchanged.” Thus, despite the higher demand, retail banks have kept the strict credit standards they adopted in the wake of the 2008 recession. They have also not increased the maximum size of credit lines or eased their requirements on collateral.

Small Businesses Remain Underserved by Larger Banks

Recently, the Wall Street Journal reported that US banks posted their biggest quarterly increase in lending in four years. However, much of this growth came from large commercial clients. According to the NSBA, nearly one-third of small-businesses (30%) still struggle to secure the financing they need. Small businesses have also reported drops in bank loans, with 17% of small-business owners reporting less favorable terms on their loans in the last year.

Getting the Small Business Financing You Need

US Capital Partners, LLC, a leading lender and advisor to small businesses, is able to secure the best possible financing for your small business when the big banks say “no.” This may be as simple as financing your small business directly, or it may involve finding the right mix of specialty lenders for your circumstances and coordinating between them. US Capital Partners is a lender, co-lender, and lead financial arranger. This enables the firm to pursue its goal of engineering optimal and bespoke financing solutions for all its clients.

If you would like to know more about how your business can secure the funding it needs, email Jeffrey Sweeney, CEO and Managing Director, at jsweeney@uscapitalpartners.net or call (415) 889-1010.

"Breakwater" is a private investment firm that has a strategic alliance with US Capital Partners, LLC. USCP provides the Breakwater Structured Growth Opportunities Fund access to a continuous stream of proprietary investment opportunities. 

Saif Mansour, Founder and Managing Partner of Breakwater Saif Mansour spoke on the first day of the Symposium at the "Meet The Manager Showcase," where he gave a short presentation on the investment strategy, methodology, and performance of the Breakwater Structured Growth Opportunities Fund, LP (the “Fund”), a private investment partnership managed by Breakwater.

The family office event was organized by Opal Financial Group and is considered the premier event for high net worth individuals and family offices. Attendees of the European Family Office Winter Symposium included private investors and asset managers from around the globe.  

If you would like to know more about Breakwater, visit www.breakwaterfund.com or call (424) 777-4000.

Non-bank lenders are increasingly offering new creative financing options for smaller businesses. Find out how to secure the right mix of financing for your business.

The financing options available to smaller businesses have steadily been increasing. Traditionally, small to lower middle market companies—those with $5 million to $100 million in annual revenues—relied on an asset-based revolving line of credit together with a term loan, depending on the nature of their business. Generally, the revolving line of credit was secured on accounts receivable and inventory, and the term loan on plant and equipment.

This traditional financing arrangement, while still useful for many smaller businesses, is no longer as readily available from commercial banks. Increasingly, however, non-bank lenders are stepping in to provide financial products that offer new levels of flexibility. Their offering now actually represents an expansion on traditional lending to smaller businesses.

The Rise of Cash-flow Lending

Traditional asset-based financing works well for businesses with large inventories, receivables, or fixed assets. However, it is fairly limiting for many kinds of small businesses, especially service companies that are light on assets but may have strong enterprise value. Non-bank lenders now provide cash-flow term loans to such businesses, even if they have less than $5–7 million in trailing EBITDA, which used to be the threshold for such loans.

High-tech companies are a perfect example of businesses that may have strong cash-flow margins but not a lot of assets. Such companies may also be in their early stages, and therefore not have many years of historical performance. The banks are hesitant to lend to such businesses. Non-bank lenders, however, will now provide valuable working and growth capital to these businesses based on their enterprise value, including their ability to generate cash, rather than on the value of their business assets if liquidated.

Finding the Right Mix of Financing

All too often, what small businesses require is a mix of financing, intelligently structured to meet their specific needs. Financing for smaller companies used to be limited. But there are now interesting new mixes available from non-bank lenders. For ultimate flexibility, a small company needs to locate the right mix of specialty lenders.

The TACC is the largest and most significant private equity event in Texas and the Southwest. This national conference is one of the largest in the country and brings 100 of the nation’s leading private equity and mezzanine firms to Texas representing more than $100 billion of capital available for investment. The event enables business owners, executives, intermediaries and other service providers in the Southwest to network with the nation’s leading sources of private equity and debt capital.

The ACG event program will feature prominent leaders in the industry including: Todd Buchholz, Former White House Director of Economic Policy; Mike Ditka, Pro Football Hall of Famer, Former Chicago Bears Player and Head Coach; and John R. Sloan, Vice Chairman Allegiance Capital Corporation. The event features a breakfast presentation and a keynote speech at lunch in addition to a breakout session with noted business leaders to discuss the capital markets.

The Texas ACG Capital Connection draws an attendance of approximately 1100 capital providers, intermediaries, service providers and executives. Non-members are welcome. Please note that attendees are responsible for making their own travel and hotel reservations.

To learn more about US Capital Partners services visit: www.uscapitalpartners.net or connect with Marin McElhany at marin@uscapitalpartners.net or call (415) 889-1010.

US Capital Partners, LLC.Small business owners often think a traditional bank is the best source for a business loan. Non-bank lenders, however, are increasingly considered to have the competitive edge.

Today's New Challenges for Small-Business Owners

With so many more players joining the alternative funding space, the small-business lending marketplace has become even more fragmented. Non-bank lenders come in all shapes and sizes, and they tend to focus on a particular kind of lending or asset class only. Finding the right lenders, and then engineering the best possible financing between them, can be challenging.

Jeffrey Sweeney, CEO and Managing Partner of US Capital Partners "USCP"To secure optimal financing quickly and efficiently, it's best to get advice from a small-business lender and lead arranger who understands the fragmented marketplace. US Capital Partners, a leading small-business lender, specializes in structuring and securing optimal financing for a small business like yours either directly from their balance sheet or in coordination with other lenders. The firm's extensive relationships with both banks and non-bank lenders allows it to bring the most appropriate financing structure to your small business.

If you would like to know more about how your business can secure the funding it needs, email Jeffrey Sweeney, CEO and Managing Director, at jsweeney@uscapitalpartners.net or call (415) 889-1010.