23. May 2012 12:19
Are all factoring companies equally capable of financing every deal? From the perspective of someone seeking credit for your business, it can be tempting to knock on the door of every bank and non-traditional lender in your area and online. But is it really better to work with anyone who will give you the kind of loan you need?
Your Field Is Unique
Immersed in the daily reality of life in your industry, it's easy to lose perspective on just how unique your business really is. The flow of revenue for the transportation industry – punctuated by delays, spiking gas prices, and lag time between payments – is very different from the expected pattern in a staffing agency, which in turn is different from a retail business. Because non-traditional lenders are often relying on these patterns to provide financing, it's vital that they have an understanding of what to expect. Your explanations may not tell them what they need to know.
A Specialized Company Has Custom Solutions Ready To Go
Many fields have developed specific lending practices that are unique within that industry. For example, trucking has freight bill financing and fuel cards. Government contract financing has to understand the additional paperwork and disclosure requirements that are necessary when working with federal or state organizations. A company that has worked with your field before knows what to expect and has already created unique solutions that are designed specifically to meet your needs. You just won't find that level of service in factoring companies that don't know your business.
Crestmark has always been proud of our customized offerings for fields like staffing, manufacturing, transportation, apparel, and government contracting. Even when we don't have prior experience in your field (a rarity considering the diversity of our staff and years of lending across industries) we know the questions to ask in order to provide you with the right non-traditional lending tools for your needs.
10. January 2012 11:42
Capping off a year of hard work, Crestmark's Jeff Mitchell accepted the Commercial Finance Association 2011 Chapter of the Year recognition for the Florida Chapter, of which he was President. Also from Crestmark on the Chapter board is Bob Harbers. Jeff, on the right, is shown with the CFA President Bruce Sprenger at the CFA Annual Convention in New York.
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.
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!
1. July 2009 04:50
Recently Crestmark Partner Services was able to partner with a local MI bank to provide financing for a struggling manufacturing company.
Case Study from Crestmark Bank