Archive September 18, 2024

Let’s face it, running a business is a wild ride. You hustle, you grind, you invoice your clients… then you wait. And wait. And wait some more for that glorious “payment received” notification. (Cue the internal screaming.) 

That’s where Accounts Receivable Financing (A/R Financing) swoops in, like a knight in shining armor, offering to unlock the cash tied up in your outstanding invoices. Sounds dreamy, right? But with a plethora of A/R Financing companies out there, choosing the right one can feel like picking a date for a blind date – nerve-wracking and potentially disastrous. 

Fear not, fellow entrepreneur! This guide will be your wingman, helping you navigate the world of A/R financing and find the perfect match for your business needs. 

The A/R Finance Posse: Understanding Different Types of Companies 

Not all A/R financing companies are created equal. Here’s a breakdown of the main players: 

Banks and Traditional Lenders: They offer secure options but often require strong credit history and collateral. 

Factoring Companies: These companies essentially buy your invoices at a discount, providing immediate cash but with potentially higher fees which comes with excellent service. 

Online A/R Financing Platforms: These tech-savvy platforms offer a faster and more streamlined application process, but might have higher interest rates. 

Pro Tip: Consider your specific needs and risk tolerance when choosing a company type. If speed and convenience are priorities, an online platform might be a good fit. For established businesses with strong credit, a traditional lender could offer competitive rates. 

The 5 Must-Haves for You’re A/R Financing Soulmate 

Here are the key qualities to look for in an A/R financing company: 

Competitive Rates and Fees: Don’t get blinded by the promise of instant cash. Compare fees, including origination fees, interest rates, and any hidden charges. 

Transparency and Clear Communication: Choose a company that explains its fees and processes clearly. Avoid any outfits with a history of hidden charges or confusing contracts. 

A Good Reputation and Track Record: Research the company’s online reviews and industry standing. Look for a company with a proven track record of happy clients. It is best to work with a state licensed finance lender, such as Asset Commercial Credit. 

Technology and Ease of Use: Does the company offer a user-friendly method of submitting invoices and tracking your account? A smooth tech experience saves you time and frustration. 

Customer Service That Rocks: Choose a company with responsive and helpful customer service. You want a partner willing to answer your questions and address any concerns promptly. 

Pro Tip: Don’t be afraid to ask questions! A reputable company will be happy to address your concerns and explain their services in detail. 

Red Flags to Watch Out for: Shady Characters in the A/R Financing World 

Just like in the real world, there are some bad apples in the A/R Financing business. Here are some warning signs to watch out for: 

Unrealistic Promises: If a company promises instant funding with no hassle, it’s probably too good to be true. 

Hidden Fees and Clauses: Be wary of contracts with unclear language or buried fees. Get everything in writing and understand all costs before signing. 

High-Pressure Sales Tactics: A legitimate company will explain their services without pressuring you into a quick decision. 

Pro Tip: If something feels off, trust your gut. There are plenty of reputable A/R financing companies are out there – don’t settle for anything less. 

The Ultimate Interview: Evaluating Potential A/R Financing Companies 

Once you’ve identified some promising options, it’s time to get down to business: 

Request Quotes: Get quotes from multiple companies to compare rates, fees, and overall service offerings. 

Schedule Calls: Talk to representatives from each company and ask questions about their process, experience, and customer service approach. 

Read the Fine Print: Before signing any contracts, carefully review all terms and conditions to avoid any hidden surprises. 

Pro Tip: Building a relationship with an A/R financing company can be beneficial in the long run. Choose a company that feels like a good fit and is willing to grow with your business. 

The Takeaway: Find You’re A/R Financing Soulmate and Fuel Your Business Growth 

By understanding the different types of A/R financing companies, prioritizing the right factors, and avoiding any shady characters, you can find the perfect partner to unlock the cash trapped in your invoices and propel your business to new heights. 

Let’s face it, every entrepreneur’s dream starts with an idea, a sprinkle of passion, and a whole lot of needing money. But securing that funding can feel like navigating a financial jungle filled with loan sharks disguised in pinstripes and venture capitalists who expect your business plan to predict the weather on Mars. 

Fear not, fearless founder! This guide will be your machete, hacking through the financing undergrowth and revealing a bounty of options, from the tried-and-true to the downright innovative. 

The Traditional Loan Tango: A Slow Waltz with Strict Partners 

Traditional loans – the granddaddies of business financing. Banks and credit unions are the go-to for many businesses, offering loans with clear terms and, let’s be honest, a healthy dose of paperwork. 

Here’s the lowdown on traditional loans: 

Types: Term loans, SBA loans, equipment loans – a buffet of options, each with its own requirements and interest rates. 

Pros: Established structure, predictable repayment schedule, can build your business credit score. 

Cons: Often require a solid credit history, collateral, and a detailed business plan. Approval can be slow, and qualification can be tough for startups. 

The Not-So-Secret Weapon: Bootstrapping – Building Your Empire Penny by Penny 

Bootstrapping. It’s the DIY approach to financing, relying on your own savings, sweat equity, and the sheer grit of your entrepreneurial spirit. 

Here’s the deal with bootstrapping: 

Pros: You maintain complete control over your business, no loan repayments to worry about, and the satisfaction of building something from scratch. 

Cons: It’s a slow and steady climb. Growth might be limited without external funding, and it can be a real strain on your personal finances. 

The Rise of the Machines (and the Money): Alternative Financing in the Digital Age 

The good news? The financing landscape has evolved beyond the confines of traditional banks. Here are some innovative options for the tech-savvy entrepreneur: 

Online Lenders: These nimble online platforms offer a faster and more accessible alternative to traditional banks. However, interest rates can be higher. 

Crowdfunding: Rally the masses! Crowdfunding platforms connect you with a pool of potential investors who can contribute to your business in exchange for equity or rewards. 

Invoice Factoring: This option turns your outstanding invoices into immediate cash. A licensed finance company, like Asset Commercial Credit, buys your invoices at a discount, and it can be a good solution for businesses with slow-paying customers or for expanding operations.  We’ve seen as high as 2,163% growth in 18 months.   

Merchant Cash Advances: This is essentially a short-term loan based on your future sales. Repayment is typically a percentage of your daily credit card sales. 

The Angel Whisperer’s Guide: Attracting Investors (Without Selling Your Soul) 

For high-growth businesses with disruptive potential, venture capitalists and angel investors might be the answer. These investors provide funding in exchange for equity in your company. 

Here’s the investor tango: 

Pros: Access to significant capital, mentorship from experienced investors, and the potential for rapid growth. 

Cons: You relinquish some control over your business, and the pressure to deliver a high return on investment can be intense. 

Choosing the Right Financing Path: A Choose-Your-Own-Adventure for Entrepreneurs 

There’s no one-size-fits-all answer when it comes to financing your business. The best option depends on your specific needs, stage of growth, and risk tolerance. 

Here’s a quick guide to help you navigate the jungle: 

Early Stage: Bootstrapping, crowdfunding, or online lenders might be good starting points. 

Growth Stage: Consider a mix of options like factoring or asset based lending, venture capital or angel investors. 

Established Businesses: Explore options like equipment financing or lines of credit to fuel expansion. 

Pro Tip: Diversify your funding sources! Relying on a single option leaves you vulnerable. A professional licensed finance broker may help, like Asset Commercial Credit. 

Beyond the Money: Building a Financially Strong Foundation 

Securing funding is just the first step. Here are some additional tips for building a financially strong business: 

Develop a Solid Business Plan: This roadmap outlines your goals, strategies, and financial projections. 

Track Your Finances Meticulously: Know your numbers inside and out. Regularly monitor cash flow, expenses, and profitability. 

Build Strong Relationships with Lenders and Investors: Start fostering connections early, even before you need funding. 

Factoring for Startups: A Launchpad for Early Growth 

It is known to all that the startup world is thrilling, full of late nights, brilliant ideas, and coffee-fueled brainstorming sessions. But let’s be real—keeping the cash flowing can sometimes feel like trying to fill a leaky bucket. Enter factoring for startups, your new best friend in the entrepreneurial world. Let’s dive into how this financial powerhouse can give your startup the launchpad it needs for early growth. Buckle up, it’s about to get exciting! 

Want to read more about the definition of factoring read our blog post here  

Why Should Startups Care About Factoring? 

1. Cash Flow Superpowers: 

In the startup world, cash is king. Or queen. Or supreme overlord. However you slice it, having cash on hand is crucial. Factoring gives you the superpower to convert invoices into cash almost instantly, keeping your operations running smoothly and allowing you to seize new opportunities. 

2. Skip the Debt Drama: 

Taking on debt can be a real downer, especially when you’re just getting started. Factoring isn’t a loan, so there’s no debt added to your balance sheet. It’s like getting all the benefits of a loan without the annoying repayments and interest rates. 

3. Outsourced Collections = More Me Time: 

Let’s face it—chasing down payments isn’t exactly what you signed up for. With factoring, the factoring company takes over the collections process, freeing up your time to focus on what really matters: growing your business and perfecting your product. 

4. Flexibility That Grows With You: 

As your startup scales, so can your factoring arrangements. The more invoices you generate, the more cash you can unlock. It’s a financing solution that grows with your business, giving you the flexibility to adapt to new challenges and opportunities. 

5. Strengthen Your Negotiating Power: 

With immediate cash flow, you can pay suppliers on time or even early. This can lead to better terms, discounts, and stronger relationships. Basically, you’ll be everyone’s favorite customer. 

The Factoring Adventure: How It Works 

Issue Invoices: You provide goods or services and send out invoices to your customers. 

Sell Invoices: Instead of waiting for payment, you sell these invoices to a factoring company. 

Get Cash: The factoring company advances you a significant portion of the invoice value, typically 70-90%. 

Collections Magic: The factoring company collects payment from your customers. 

Final Settlement: Once the customer pays, the factoring company sends you the remaining balance, minus their fee. 

Ready to Dive In? Here’s What to Consider 

Cost: Factoring isn’t free—factoring companies like Asset Commercial Credit, charge a fee for their services. Make sure you understand the cost structure and how it fits into your overall financial strategy. 

Customer Creditworthiness: Factoring companies will evaluate the creditworthiness of your customers. If your customers have a history of late payments, it might affect your ability to factor those invoices. 

Control: You’re handing over control of your collections process to the factoring company. Make sure you’re comfortable with this arrangement and choose a reputable factoring partner. 

To learn more about the requirements for account receivable click here 

Real-Life Success Story 

Meet Lisa, the founder of a tech startup that creates smart home devices. Lisa’s products were flying off the shelves, but her cash flow was struggling to keep up. Traditional loans were out of the question—she didn’t want to take on debt. Enter factoring. By selling her invoices, Lisa unlocked the cash she needed to ramp up production and expand her marketing efforts. Within six months, her revenue doubled, and she was able to secure a major partnership with a national retailer. Boom. 🚀 

Conclusion: Factoring – Your Startup’s Secret Weapon 

In the wild world of startups, every advantage counts. Factoring can be that secret weapon that helps you maintain steady cash flow, avoid debt, and focus on what you do best—building your business. It’s flexible, it’s powerful, and it might just be the launchpad your startup needs. , her revenue doubled, and she was able to secure a major partnership with a national retailer. Boom. 🚀

What is factor for finance?

A factor is an intermediary agent that provides cash or financing to companies by purchasing their accounts receivables. In short, a factor is a funding source; the factor agrees to pay the company the value of an invoice—less a discount for commission and fees

What is the role of factoring?

Factoring allows SMEs to effectively outsource their credit and collection functions to their factor. This represents another important distinction between factors and traditional commercial lenders. These credit and collection services are often especially important for receivables from buyers located overseas

How does factoring work in trade finance?

As invoices are raised, the factoring company will provide a percentage of the face value of the invoice to the company e.g. 80%. Depending on the set up, the factoring company will then collect the debt from the customer, remove their fees and send the remaining funds onto the company.

How does factoring works in the manufacturing company?

As invoices are issued, the factoring company will provide a percentage of the face value of the invoice to the company e.g. 80%. Depending on the set up, the factoring company will then collect the debt from the customer, remove their fees and send the remaining funds onto the manufacturing company.

What is the process of factoring?

In the process of factoring, businesses sell their slow-paying invoices — or accounts receivable — to a third-party factoring company. This company immediately pays most of the invoice amount (factoring) and assumes the responsibility of collecting the full invoice amount from the customer.

These are quite possibly the most misunderstood organizational development components around. Many business owners hear that they are important, but they don’t really know why. They read a little, or remember a course or rely on an employee’s education when they were discussed.

Let’s start with the questions … what are they & why are they important?

A mission statement is a quick outwardly focused statement about what the company does, how they help people, or the purpose of the company. Basically it states why the company exists. It should be as short as possible, clear and focused. Many people try to load the statement with jargon, vision and values because they think it is more sophisticated. They also tend to create a list of all of the products or services that the company does. Avoid all of this! A clear mission is useful in talking with customers, prospects and reduces internal conflict. All employees should have the mission memorized. Once this happens synergy can happen inside the organization.

Values (Statements of Values) are more important and even more misunderstood. First, I’ll start with the “why”. A Statement of Values serves as a foundation for all company decisions. Clearly one can not write procedures for everything. Individuals will have to make many decisions on the fly during the course of operating the business. I like to tell my clients that they do not want to create Enron Values. You might remember that Enron created very nice sounding values, yet their corporate decisions were routinely inconsistent with the values. The process of creating a Statement of Values is almost always more efficient by using a professional facilitator. Otherwise the tendency is to create items that sound good, but are not truly the company’s values. The Statement should focus on 5-7 core statements that are easy to remember.  All employees should be able to recite the values (at least in paraphrased form). Management should integrate the Statement of Values into the orderly running of the business.

Vision is a statement of where the company is going, what management wants to accomplish, or what success looks like. Varying complexities can be acceptable, however all employees should understand it. Performance plans should focus on it. Bonus programs should be designed to accomplish it. “Lofty” is good; however the vision must be seen as possible by the employees. President Kennedy’s vision was to put a man on the moon by the end of the decade. Short can be good in that it is easy to remember. It has been said that Pepsi’s vision was to Beat Coke. However the vision needs to be specific enough to bring the employees together for a specific purpose.

Once you create these items and focus your organization, you will be amazed at what petty issues disappear. If you have a strong buy into mission, values and vision, and are still having problems, the next step is to examine the structure or guidance that is imbedded into processes and procedures. This will be the subject of another blog entry.

Bob Stackhouse, President, Asset Commercial Credit

I always suggest the use of an outside professional facilitator to help management with these organizational development objectives. A facilitator can extract ideas and concepts out of key employees, gaining their buy-in. It is a little bit like teaching youth to drive. The quickest and least aggravating experience is to use a driver’s education professional. Children tend to respond differently to a trainer than their parents.

Feel free to contact Us about referrals to a Certified Professional Facilitator that is near you.

Have you ever learned something that empowered you to help others throughout you career? I’ve gathered a few gems from my past and will offer them in a quick, easy to read series designed to help with managing people. Throughout my career, I’ve used this first story many times to help employees and friends who are having issues with others to find a productive path to solving their own communication issues.

It was in the late 1970’s and I was the Real Estate officer at a bank. My dad was the manager of a different branch of the same bank,. He shared with me a cassette tape of a speaker from a management conference he attended. The speaker was very dynamic and uplifting. I remember the speaker’s last name was Wilson. He told a story about communication that went something like this:

Husband: Honey, where are my shoes? (said innocently)

Wife: If you put your shoes where they belong, you’d know where to find them. (Said with sarcasm and tone!)

Husband: Up yours baby! (Said with great emotion!)

Mr. Wilson then went on to dissect the conversation like this:

Husband: Honey, where are my shoes? … is a question asked from the husband’s adult ego state.

Wife: If you put your shoes where they belong, you’d know where to find them … is a response from the wife’s parent ego state.

Husband: Up your baby! … is a response from the husband’s child ego state.

While this example uses unfair stereotypes that were predominant in the 70’s, it nevertheless causes the listener to grasp the concept of ego states. Nowadays I clarify that it can be either spouse in either role, matching the innocent gender to the person I’m talking to.

Mr. Wilson made the point that true communication only happens when both parties are interacting from their respective adult ego states. This is especially true a business supervisorial setting. His conclusion was if a party is in their child or parent ego state, find a way to hook their adult and only then deal with the problem at hand. Hook first, then resolve!

Since that time, the internet has exploded with information, including more depth about transaction analysis, ego state theory, personalities, behavioral science, and psychology. I’ve since learned that ego states is part of Transactional analysis that was formulated by American Psychiatrist Eric Berne in 1958.

If the concept that people are wired differently and have different needs, focuses and ingrained methodology in approaching life is of interest to you, then you may want to learn about Temperament Types. Please Understand Me by Keirsey & Bates is a good start. It explains Myers & Briggs Temperament Types and is one of many models that help people understand that we are all wired differently. Given our differences, understanding others helps one to get along with and even to motivate others. I highly recommend this reading.

If that reading gels with you and you are looking for even more interesting reading, I suggest Emotional Intelligence by Daniel Goleman. Goleman delineates the five crucial skills of emotional intelligence, and shows how they determine our success in relationships, work, and even our physical well-being. Truly, understanding others is critical to meeting the needs of employees and providing employee satisfaction. Of course the company will benefit from more productive, quality work in the process.  

It must be said that no one has all the answers to every situation but when your core value is to create an “everybody wins” objective, then paying attention to solving communication issues becomes important. We welcome the opportunity to add value to all our relationships and hope this information helps you.

Bob Stackhouse – President, Asset Commercial Credit

©All rights reserved 2021

First, a few words about the times. Bad things are happening to many (a gross understatement). My prayers are with all who Covid-19 has impacted, their families and the health care workers who are witnessing tragedy every day. I really cannot imagine the burden the Health Care workers carry. Clergy carries the same or similar burden as they help us deal with death and tragedy.

We also see and hear a lot of people channeling their instinctive hostile energy to very negative political rants. Anger to a degree can be a motivator to action to solve a problem. Anger can also eat at one’s soul and be harmful to one’s physical health. Getting it out is better than holding it in. However, my hope is that we can all find a way to channel that instinctive hostile energy into creative and constructive outlets and not let it eat away at us. My suggestion is to avoid angry rants and find a way to productively solve the problem or issue. If you are feeling powerless, find a group and talk through potential solutions. Brainstorming can be effective in both exercising the anger and in solving the problem.

If you can, let’s not lose sight that good things are happening to many. My granddaughter recently expressed joy about getting very quality home teaching from my daughter. Some of this kind of interaction is both trying and rewarding at the same time. This time together can truly be an opportunity for belonging, growth, productivity and joy.

Many of us have expressed that we just do not have the time we need to complete priority tasks. We are picking and choosing which tasks are the highest priority.  One might just take this opportunity to go deeper on our lists and get more done. That may be reading the book you’ve been wanting to read. Perhaps it means cleaning the garage or going through possessions and getting rid of items that you no longer need. Alternatively, one could study up on that skill you wanted to learn. This may be the best time to connect with distant family who you’ve been meaning to talk with but haven’t because of a lack of time. A good friend recently said that he was experiencing Groundhog Day. After laughing and thinking about one of my favorite movies, I responded: “So when are you taking up piano lessons”.

Health care workers, teachers and other essential personnel are overloaded with responsibilities, duty and demands on their time. My best response is to suggest they think about what type of help or assistance can be productive and then ask for help. Helpers do not always know how to help or what is the most efficacious assistance. Sometimes they actually get in the way as they are trying to help. Thinking it through and then giving constructive guidance is the key to getting quality relief. Also, to the degree possible, overloaded people should unload responsibility to others in addition to tasks.

Many of you are working from home during the pandemic. That probably means you still have a job or if self-employed, you are pursuing your dream. It might mean that you are furloughed or laid off but are trying to keep your skills fine-tuned. Here are twelve items to keep productive and your sanity:

1.Decide you will make this time productive. Choose to make the best of it. A big part of life is attitude. It will make a difference in the quality of life.

2. Create a dedicated space to do your work that way it will be easier to stay focused. Avoid the TV and the couch. If you are like me, the couch signifies relaxing and I’d easily be distracted.

3. If you have family at home get an agreement with them that work hours belong to work, unless there is an emergency. Though a quick hug on their way to the park is still a good idea.

4. Make a schedule and keep to it. The schedule should be as detailed as your personality preferences will allow.

5. Get up at the time you normally get up. Routine is important for productivity.

6. Take a walk for the length of time you normally drive to work. This is a gift to yourself and your health. It will help to remain focused during the rest of the day.

7. Set clear goals for the day, listing them on paper or a white board. If you are not a list person, do it anyway. It is about creating structure and defining the day’s success. This self-feedback will be important to staying focused and minimizing the drudgery of an extended isolation period.

8. Communicate with your team. Learn about conference software and use it. I like Zoom and Facetime. There are many more.

9. Take a lunch break away from your work space. Eat and relax. You might want to set a timer so as to avoid letting the break run away with the day.

10. Be sure to take at least two other short breaks during the day. Physical activity has great merits. Exercise, walk or dance to your favorite song. Set a time limit to go back to work.

11. Check off completed tasks. That will give you visual evidence of your productivity and help you stay on task.

12. Stop at the end of the work day. Remember time off work is valuable to your health, enjoy.

If you have other good suggestions, feel free to respond to this blog.

Something else for fun:

• Some say the glass is half empty -Pessimists
• Some say it is half full – Optimists
• Some say it is the wrong size glass – Engineers
• Some say that there is not enough information, it depends on whether the glass is in the process of emptying or in the process of filling (momentum) – Physicist & OD Consultants

Bob Stackhouse, President, Asset Commercial Credit

© Bob Stackhouse – All rights reserved – April 2020

Have you ever learned something that empowered you to help others throughout you career? Sharing stories is the focus of this series. Here is another gem from my past designed to help with managing people. This core concept/analogy has also been used many times to help employees and friends who are having issues with others to find a productive path to solving their own communication issues.

This initial challenge occurred early in my career when I was the assistant manager at a bank. Three of the employees were upset (I’ll call them the choir). The core issue was stated to be the behavior of one particular employee. She seemed to do things that caused angst. The rest of the team wanted nothing to do with her and frankly slowed their performance. The offending employee did get her work done with decent quality. Many customers gravitated to her.

When I drilled down on the actual things that the employee was doing, her actions were somewhat defensible, but certainly were not cooperative or team oriented. She was pretty and glided like a princess, expecting others to pamper her desires. She was very self-centered and while she thought she was a team player, she was not. It was one of those situations where her sense of self was out of sync with her actual actions. In fact, she was a prima donna. She got her confidence from her looks and relationship with the reigning Regional Vice President that was ultimately everyone’s boss. Locally, she didn’t care that she offended others, perhaps she actually liked it. I think that the more she offended, the happier she was. I think it made her feel powerful.

What solved that situation was to get the choir to stop putting out egg shells (I’ll explain shortly) in her path and to stop reacting when she stomped them out. The concept that the choir subconsciously tempted the prima donna was something that they were unaware of. They originally wanted me to direct her behavior on each and every issue. I call that a traffic cop solution. The choir stopped putting out egg shells so when the prima donna started stamping, nothing broke and the choir started to see her for what she was. Shortly thereafter the prima donna changed her behavior and stopped stamping and the whole atmosphere changed in a positive way.

The concept of using egg shells which are easily broken is an analogy for something that is easily offended.  The analogy can be very useful in focusing one on what they are really doing and in changing behavior. It’s kind of like baby proofing a house when you have a toddler … or avoid unwanted critters by stop putting out food in the backyard.

One moral is to store your fine China (things that easily upset you) out of reach because people will be people. A second lesson here is to avoid being a traffic cop or referee. Otherwise you’ll be doing that permanently. First, understand the core issue and not just the symptoms, then find a solution that can be a catalyst to the core problem resolving itself.

Bob Stackhouse – President, Asset Commercial Credit

©All rights reserved

We regularly talk to clients and prospects about their businesses, their opportunities, strengths and weaknesses. In the middle of the Coronavirus Pandemic the conversation has changed. We offer as much support as we can while creating a win-win scenario for our clients, their customers, our investors and of course our company. We thought that putting some of the information on a blog would be helpful.

Management operating a business that is affected by the Pandemic should consider applying for an SBA Disaster Loan. The President has declared a Nationwide Disaster therefore disaster funds are available throughout the United States. Information is available on the SBA’s web site:  https://disasterloan.sba.gov/ela/ 

As of Friday, 3-27-20 the Senate has approved the CARES Act. The house is expected to pass it today and the President is expected to sign it. For a copy of the details before the House of Representatives, click here.  STOP THE PRESSES! In the middle of writing this blog the House passed it and the President signed it. It will be interesting to see if anything changed. YEA for government support.

This act provides for individual and business support in many ways. Businesses that keep employees have access to a special program called The Paycheck Protection Program. That program allows businesses to borrow at low interest rates and long maturities. Certain expenses that the business pays during an eight-week period will qualify some or all of the loan to be forgiven. The biggest focus is on keeping employees on payroll. This is certainly something that businesses need to look into.

Also, several counties have created programs to support businesses in their jurisdiction. One example is San Diego County (CA).  Details of their program is available here https://www.sandiego.gov/SBRF Be sure to check with your county and also any State programs that develop.

After discussing the above with a prospective client today, they asked, “Is there anything else we can do”. It’s a simple question that often has a complex answer.

Not meaning to be wishy-washy it ultimately comes down to the identity of the company, their vision and what level of change management is willing to implement. Let’s start with the understanding that no one can be an expert in everything. That then leads me to management. Are the right leaders at the helm? Do they know their limitations? Are they willing to bring consultants to the table to support areas of weakness? Keep in mind that consultants have knowledge in their area but are not experts in everything too. An ethical consultant will not consult in areas where they do not have sufficient knowledge and experience to be valuable.

My good friend Larry Mandelberg is a Change Mentor for Executives. He has developed a methodology to quickly center focus on the most serious issue that when resolved will fix a multitude of business symptoms. He calls it the Mandelberg Business Managers Realty Index (mBMRI). I’ve independently tested it and found it to be fully in sync with my observations in financing over 3,000 businesses in my career.

So back to the question, is there anything else we can do?

• Some companies need to look at their mission and are they really in tune with accomplishing it.
• Some companies need to look at their values and are they really in tune with their decisions.
• Some companies need to look at the vision and is everyone focused on accomplishing it.
• Some companies need to look at their procedures and processes to see if they are appropriate.
• Some companies need to look at management, do they have the right people in place to accomplish their vision
• Some need to look at employee training, supervision, support and feedback systems.
• Some need to do better planning, whether broad plans or marketing plans.
• Some need to merge with other companies to get economy of scale.
• Some need to shrink because their market has shrunk or they overgrew the market.
• Some need to find investors, selling a piece of the business in order to correct capitalization issues.
• Some need a line of credit or term loan to properly leverage their capital.
• Some won’t qualify for traditional bank credit facilities so an SBA guarantied loan may make sense.
• Some need to factor their receivables thereby creating cash in the short term while they wait for additional relief.

I could go on but I bet that you may have stopped reading the bullet points half way. Ultimately it is up to management to know where they are driving the business and how to get there. If you need a consultant contact the IMC (Institute of Management Consultants) for a specialist to help guide you through your path. https://www.imcusa.org/search/custom.asp?id=2065

Bob Stackhouse, President, Asset Commercial Credit

© Bob Stackhouse – All rights reserved – March 2020