CapSource Funding's Blog Spot

NEWS FLASH - Radio Guest on April 11

2008-04-10T06:26:00.003-06:00

Take advantage of a rare opportunity to hear all about CapSource Funding and business financing opportunities. I will be on-air as a guest on the House To House show at 7am (Mountain) on April 11th, hosted by Michael House of CastleRockRadio.com.

Castle Rock Radio is an internet radio station and can be heard anywhere via access to the internet.

http://www.castlerockradio.com/

Cashing In On Credit Cards

2008-03-31T22:32:00.007-06:00

It’s difficult to imagine how the economy would be effected if commerce were a cash only proposition.
Credit based purchasing is certainly a benefit to the consumer who has the need, albeit not the cash. On the merchant side of the equation, the benefits are equally important:

Increase sales
Convenience
Source of cash

Wait! Source of cash? That’s right, credit card receivables are a powerful source for accessing working capital.
Although scores of merchants accept credit cards, very few are aware of the untapped potential of this staple of commerce.
Credit card receivable funding is an exciting opportunity for business owners seeking financing. As with other opportunities in the Cash Flow industry, there are many different versions and terms available, however they do share these common characteristics:

Visa/MasterCard Merchants - This option applies to merchants who accept Visa and/or MasterCard, regardless of whether it's a brick and mortar or online store front.
Future Sales - Funding is based on the merchant's expected future credit card sales.
Qualifying - Credit worthiness focuses more on past sales than on the bureau score of the business/owner.
Payback Using Daily Sales - Payback is based on a small percentage of future sales, and occurs automatically as those come in. This means that unlike the stringent terms of traditional financing where “x” amount is due by “date”, re-payment is driven by the performance of sales.If the month is slow, less is paid, if business is booming the faster the advance is paid.
Speed - This type of funding really shines when the need is urgent (ie: meeting payroll, fulfilling orders, etc.). Cash in hand occurs in a matter of days as opposed to weeks.

It’s always best to have the right tool for the job. For business financing, credit card receivable funding is certainly a versatile and effective tool.

[This posting is from a feature article of CapSource Funding's Working Capital Journal. For additional articles or to subscrible, visit www.capsourcefunding.com.]

Aspire to a Healthy Cash Flow

2008-01-30T01:13:00.000-07:00

It’s that time of year when people commit themselves to a healthier lifestyle. For the business owner, it’s also a great time to commit to a healthier cash flow.

It’s all too common to look at cash flow solely from the ‘numbers’ perspective. Is there more or less incoming cash versus outgoing cash? While the numbers do tell a story, it’s important to note that they do not tell the whole story.

Ledgers are not known for revealing lost the opportunities poor cash flow causes. It’s hard to say what the loss of a particular customer will do to a business in the long term. Could that customer be one that stays with you through the years? Could securing a particular vendor or supplier be the partnership that propels you past the competition? What about the right talent or marketing initiatives?

Just like the goal of a healthy lifestyle, a healthy cash flow can be impeded by a myriad of different pressures. The difference is that attaining a healthy cash flow is simple, doesn’t involve a treadmill, and you’ll see dramatic results in a few days.

There are many different ways to obtain financing but not all of them are feasible or desirable. Some business owners prefer to avoid incurring debt such as a bank loan or credit card. Others may not qualify for financing. Still others considering an equity based approach would prefer to retain their ownership and assets that would be at risk in venture capital or asset based lending arrangements.

The cash flow industry is the solution to these issues. Based on the centuries old practice of leveraging ‘promissory paper’ in exchange for immediate cash, the industry has developed a host of flexible solutions.

There are many reasons that opportunities may be lost, but an unhealthy cash flow need not be one of them.

[This posting is from a feature article of CapSource Funding's Working Capital Journal. For additional articles or to subscrible, visit www.capsourcefunding.com.]

Happy Holidays

2007-12-31T16:15:00.000-07:00

Yes, yes, I know I posted for Veterans Day and Thanksgiving, but missed Christmas (my elf duties infringed on my blog time).

Please accept my belated Merry Christmas wishes. Hope that you and yours had a wonderful holiday, a true Colorado white Christmas!

If you celebrate Hanukah or Kwanzaa, here's hoping that your celebrations were was happy as well!

For all, here's to a very Happy New Year filled with blessings and prosperity throughout.

A Day of Thanks

2007-11-20T18:17:00.000-07:00

The bounty of the harvest is certainly an appropriate time to give thanks for the seeds sown throughout the the year. Although not everyone grows their own food anymore, everyone still plants seeds hoping they'll bear fruit. This is a time for reflection and recognition of one's blessings. It is a gentle reminder of what's important in life.

May this day provide you with that moment of clarity when worldly cares subside, and you recognize what you are thankful for.

Happy Thanksgiving!

We The Free, Honor Our Brave

2007-11-11T12:32:00.000-07:00

On this Veteran's Day, we the free honor our brave.

Although we have a tendency to wait for days such as this to express our gratitude, those of you who serve, take heart that you are supported everyday in the hearts and minds of those you protect.

We honor you not just for you bravery and sacrifice, but for the example you set for all American citizens.

The History of Veteran's Day

The Cash Flow Legacy

2007-11-04T12:18:00.000-07:00

In the course of human interraction, the question is bound to come up..."...and what do you do?". And every so often my response is met with a matter of fact, "Never heard of it.".

True enough, cash flow isn't as much a house hold term like it's financial peers banking or venture capital. Even so, it's roots are deep and established.

Cash flow encompasses a wide variety of funding opportunities for both businesses and individuals. The common thread, is that there is some kind of 'promissory paper' to which payments are being made. This makes it unique in the financial world since it is neither debt-based nor equity-based funding.

The fact is that today's cash flow industry can trace it's roots as far back as ancient Mesopotamia. The story goes that under the rule of King Hammurabi, many elements of civilization were pioneered, among them, the concept of factoring. It is said that the Romans made the next significant contribution, by adding an actual paper note to the transaction.

During the American Colonial period, factoring was common, particularly in the garment and timber industries. In those days, the long voyages between England and America put a significant strain on merchants and in particular suppliers. Due to the long shipping periods factoring became an ideal tool to keep the cash flowing, and production moving.

During lean times since then, such as the 1930s, and the high interest rates of the 1970s...cash flow funding was called upon again. By the 1980s and early 90s, the loose affiliations of professionals in this line of work began to coalesce in to the current cash flow industry.

Today's cash flow industry involves many varieties of types of funding. The factoring (or accounts receivable funding) of long ago remains, and has grown into various products that meet the various needs of clients. There are many others now as well, including credit card receivables, delinquent debt, purchase order funding, and business notes to name a few.

Businesses of nearly every stripe utilize these financial tools from the Fortune 500 level to the small business owner. The one thing they have in common is the desire to use the best tools for the job.