How Crestmark Helps

by Michelle 25. August 2010 04:48

Today we are going to begin a series in our blog on How We Help.  Occaisionally, over the next weeks and months I will post articles and comments from our clients on how Crestmark was able to help them with their specific needs.  Today’s example is from a Staffing company on the east coast.

The company is a very well known and respected temp medical staffing company located on the East Coast.  They provide a variety of medical professionals including LPN’s, RN’s and physical therapists to hospitals and nursing homes. 

They began to see significant decrease in their business from about June 2008 through January 2009.  The leadership took very proactive steps to reduce their overhead and business expenses, a process which they continue to do.  Due to management taking an active role in managing to a new sales forecast they have begun to turn the corner and are projecting a breakeven 2009.  Leadership felt strongly that they could post positive net income during 2010. 

Their previous lender became nervous about the relationship after they experienced 50% drop in sales from the previous year.  The losses caused their lender to become very restrictive with their credit facility and availability as well as imposing some very strict financial covenants.  This put the company in a very precarious position; they had a drastic drop in business, they were experiencing longer than usual turn on their receivables, and their lender was restricting their credit line.

They first came to Crestmark in June, 2009.  The client said he knew from day one talking with Crestmark, that we were different than the other companies he had spoken with.

We were able to quickly review and provide them with feedback on what we would be able to do for them.  Our solution was an AR Loan with an available credit limit that would give them more than adequate cash flow and some very welcome breathing room.  In addition we offered a 90% advance rate which was more aggressive than the previous lender, the new relationship was completed by the previous lender’s deadline

All of this has allowed them to continue to make necessary improvements to processes and expenses while being confident that they have a lender who will be there with them step by step to bring them through difficult times and ultimately to profitability once again.

Accounts Receivable lending still good option

by Michelle 10. August 2010 11:15

I was recently reading an article about access to credit for small businesses and thought, geeze…what’s a business owner to think these days?  Are things getting better?  Are banks lending…or not?

Here are a couple of quotes from the article, “For Small Business, Slow Gains In Credit,” dated July 13, 2010;

“Overall, the survey data seem to suggest that current economic conditions for small businesses, though still quite challenging, are less dire than they were in 2009.” This is a quote from Robin Prager, and assistant research director at the Fed.  She was quoted recently at the Fed’s forum for small business lending.  Sounds promising, right?

Well, not so fast…just 2 paragraphs later in the same article, Fed Chairman Ben Bernanke is quoted as saying, “The formation and growth of small businesses depend critically on access to credit.  Unfortunately, those businesses report that credit conditions remain very difficult.”

So, as a business owner who needs credit to start or grow their business I’m sure many are left wondering, “I can perhaps, maybe get a loan or not with my local bank…they more or less may or may not lend me a small amount of money???”

Sometimes I think we would all be better off reading tea leaves…but I digress.  On to the main point…

All of this uncertainty leaves many small business owners deciding not to hire or grow until they can get a better feel for what they can reasonably expect from lenders in their area.  And to speak to the other side of this equation, local and regional banks are nervous about what types of businesses to lend to due in part to the many regulatory rules and a general perception that in these times any risk may be too risky. 

The good news is that accounts receivable lending through factoring or asset based lines of credit remains an excellent option for small to medium sized businesses who don’t qualify for a traditional loan.  Our industry continues to see allot of activity and we are actively working to help as many business owners as possible.

In these perplexing times alternative lenders are a good option.

Crestmark announces our new website

by Michelle 2. August 2010 11:21

After almost a year of hard work and collaboration we are very excited to launch our new, updated website!

Crestmark is an FDIC insured financial institution which specializes in providing working capital through accounts receivable lending to small and medium sized businesses across the country. The bank was originally founded in Troy, MI and in recent years has expanded it’s footprint through a series of acquisitions. These acquisitions brought in already established, successful accounts receivable factoring companies. All of these events lead to the need to create a newer, updated and more comprehensive website.

We hope that you will find the new site informative and helpful! Within the pages of the site, you will find explanations of the various types of solutions that we offer; accounts receivable factoring, asset based lines of credit, and accounts receivable loans. I think you will also find that we are very diverse in the industries we serve; staffing, manufacturing, distribution, apparel, government contractors to name a few.

So…take a look, and let us know what you think. We think you’ll be pleased!


We have great customers!

by Michelle 9. July 2009 03:53


Back in the good old days, you know before the government took over GM… Before the likes of Lehman Brothers, Circuit City and countless others went belly up.  Back when doing business with any large, well known company was practically a guaranty of growth for your business. Your first class ticket to ride the smooth waters of prosperity.

You know…BEFORE 2008.

We all now (and at least for the foreseeable future) find ourselves living in an alternate reality.  One which causes business owners to question the health and life of even their best customers.  Even large, solid companies that are not running out of red ink while printing their quarterly financials, are holding on to their cash as long as possible.  The result?  Slower payments to their venders. 

Can a factoring company help in this situation?


Most factoring companies spend a good deal of their underwriting process vetting their prospective clients’ customers.  And for good reason.

It’s the ultimate goal of both the factoring company and client to get paid for their receivables.  This is a crucial component of any factoring relationship.  Over the years we have helped many clients sail past the squalls and choppy waters of customers who posed a big credit risk.

So…here’s to partnership and smooth sailing; or at the very least a less bumpy ride!

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Last Resort Financing?

by Michelle 4. June 2009 04:22

There has long been a misconception that companies who use factoring are dangling one foot over the abyss of financial ruin.  This perception is untrue and often the result of rumor and ignorance of what factoring really is and how thousands of business owners benefit from this type of financing.  


• Do business owners turn to factoring when they have experienced a downturn?


• Is factoring a good option for companies who have been turned down for a more ‘traditional’ line of credit?


The answer to both of these questions is, yes.  So, while using factoring to help a business owner take control of their cash flow and firm up their balance sheet to get them through a rough patch; it can also be said with a good measure of veracity that factoring can also assist a strong business grow and keep up with increased demand.



Many business owners turn to accounts receivable factoring because their cash flow is inconsistent.  A business may have a relatively small cash flow for part of the year, and when they are in their peak business cycle, their cash flow increases significantly. 


By factoring their invoices business managers and owners control this cash flow cycle.  They find that rather than being reactive to the ebb and flow of their cash flow, they can make their receivables work for them.  It becomes a much easier and less stressful event to say ‘yes’ to new customers or larger orders once business owners are confident they are not going to be strangled by tight cash flow.


Used correctly, factoring is a very effective tool for a variety of situations.

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