what is ABL?

Bullet Points: How Asset-Based Lending Increases Cash Flow

what is ABL?

Time is money, and when you’re in need of cash flow you need to get information fast. Let’s cut to the chase with the bullet points on asset-based lending.

What is Asset-Based Lending (ABL)?

  • An asset-based loan allows you to leverage your accounts receivable, inventory, equipment and real estate in order to get access to working capital
  • It can be a loan from 6 – 24 months, but generally averages around 1 year
  • Often used by established companies with definable and identifiable internal processes and controls.

What assets can be used for ABL?

  • Accounts receivable: Invoices that customers owe you now or in the future
  • Inventory: raw materials, work in progress or finished goods sitting in your warehouse
  • Machinery and equipment: Funding can be up to 75% of the liquidation value.
  • Real estate: Register a collateral mortgage against residential or commercial properties. You may also check into your property values with an up-to-date appraisal from your real estate agent. Liquid Capital can provide more info on the process.

what is ABL financing

Why would your company turn to ABL?

  • It’s a more flexible type of financing
  • Well suited to companies with seasonal sales
  • If you’re in rapid growth stages, it can get you faster access to cash flow
  • Clients outside of covenant with their bank may find this is a better option 

To qualify for ABL, your company should:

  • Have a strong credit rating
  • Have comprehensive financial reporting and internal controls
    • Monthly financial statements
    • Aged A/R and A/P summaries
    • Have proven success and a good track record

Read Related: What is accounts receivable financing and factoring? Leverage unpaid invoices and turn them into liquid cash flow.

ABL may be right for your company if you are:

  • Short on working capital
  • Fall shy of bank loan criteria
  • Have seasonal capital requirements that don’t fit into the bank loan structure
  • Looking for lower rates than a factoring solution
  • Not looking for a long-term contract for financing
  • Consider optics important and you don’t want your client experience to change. Discretion is key with non-notification ABL, typically available to larger businesses. Check with your Liquid Capital Principal to see if this is available to your business.
    • Payments are deposited into a “sweep account” (typically at your bank) and your client is never aware that Liquid Capital is handling your financial transactions.
    • In a strong growth cycle and need quicker access to working capital.
      • Liquid Capital calculates borrowing amounts on a weekly basis, compared to banks that traditionally do this on a monthly basis. If you’re growing, your ability to borrow will increase.
interns

Profit From The Power Of Interns

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Finding and hiring effective employees is an ongoing challenge for growing companies. Running an internship program may help develop your team. However, before you establish one, keep in mind the realities and commitment for both the interns and the employer.

For an intern program to be worthwhile, you need to first decide what legitimate tasks an intern can perform. Be clear from the beginning what you expect. In turn, ask what the intern expects to gain. Experience in a specific industry? Skills in their craft? Interns typically look for tangible assets such as letters of recommendation or introductions to key industry contacts, too.

Right out of the gate an intern can be an asset. Millennials, for example, have grown up with social media and quickly evolving technology. They bring skills and insights your staff might not have. For skills specific to your industry, hiring interns while they’re still in college gives you time to groom them so that they’ll be a good match for permanent employment after they graduate. An advantage to that approach is displacing the cost of hiring as well as a training period. The newly hired previous intern will be ready to go right from the beginning of employment. Internships are an ideal way to ensure that you develop what you ultimately need in a competent employee.

ManpowerGroup has nearly 3,900 offices across 80 countries with 400,000 clients from small organizations to globally-renowned corporations. Its tenth annual Talent Shortage Survey shows that about one in five (19%) employers struggle to find candidates with applicable experience. Its infographic “The Talent Shortage Persists” highlights opportunities for both job seekers and needy employers. The deficit comes down to experience: the lack of technical competencies (hard skills) and workplace competencies (soft skills).

Vault is a resource for 2.5 million subscribers worldwide, matching thousands of employers (70 of the Fortune 100) to 6 million students and constituents. Interviewing 6,000 current and former students for its Top Internship Rankings for 2016, Vault found that approximately three-quarters of interns on average receive a full-time job offer from the employer after interning.

Lastly, understand your responsibility as a company recruiting interns. SkilledUp reports that the average hourly wage rate for a paid intern with a bachelor’s degree ranges from $15.05 to $17.94, depending on the applicant’s major. Unpaid internships are an option but you need to understand the law. SkilledUp’s blog post Recruiting For (And Through) Your Company Internship Program explains the “six prong test” as per the Fair Labor Standards Act. A key requirement is that an internship will not displace a regular employee.
Bottom line: Do your homework. The right intern program can save your company money while grooming an apprentice to be your ideal employee.
Image via NASA Goddard

Lendified Holdings Inc. And Liquid Capital Corporation Announce $20 Million Credit Facility To Support Growth Of Its Small Business Lending Activities In Canada

TORONTOAug. 16, 2016 /PRNewswire/ – Lendified Holdings Inc. (“Lendified”), a Canadian-based lending technology company offering working capital and related financial services products to the small business community, is pleased to announce that it has entered into an agreement with Liquid Capital Corporation (“Liquid Capital“), a company specializing in providing working capital, asset based lending and trade finance solutions. Liquid Capital will provide the senior debt for a new credit facility, initially in an amount of up to $20 million, for working capital loans underwritten by Lendified.  At the same time, Lendified announces it has closed a further $4 million in mezzanine financing through a private placement bringing the total funding lines to $24 million. Lendified is now poised for significant growth across a number of targeted markets for its products.

Launched in early 2015, Lendified provides small businesses access to working capital from $5,000 to $150,000 for terms of up to two years. In early 2016 Lendified purchased Mentio Technologies Inc., adding additional data and analytics capabilities to its technologically-advanced credit adjudication model. Lendified today provides small businesses with advanced tools for managing their cash flow in addition to providing prospective borrowers a frictionless experience in applying for and receiving working capital. Lendified’s wholly-owned subsidiary, Lendified Technologies Inc. provides third party financial services firms including banks, credit unions and other firms dealing with small businesses with a “software-as-a-service” tool that enhances the risk review process of small businesses applying multi source data analytics with advanced algorithms which provide a best in class view of the current and future performance of small businesses.

“We are pleased to have formed a funding partnership with Lendified,” said Sol Roter, President and co-founder of Liquid Capital. “Lendified exemplifies today’s merger of lending skillsets, quality management and technology within the “Fintech” world of financial services. Lendified’s advanced methodologies around credit analysis, while leveraging technological access to information is very, very impressive. It is our plan that this partnership will bring opportunities for efficiency and referral across our respective platforms as well. This transaction represents an important addition to the Liquid Capital portfolio and provides an outstanding opportunity to showcase Liquid Capital’s increasing commitment and interest in technology-driven financial services.”

Liquid Capital entered into a joint venture with Next Edge Capital Corp. (“Next Edge”) in 2015 to co-fund investments in accounts receivable, trade finance, and asset based lending transactions sourced by and through Liquid Capital’s Principal distribution channel and financed via the Next Edge Private Debt Fund (the “Next Edge Fund”).  The Next Edge Fund has now grown to approximately $50MM and will continue to grow as Liquid Capital continues to source quality transactions through its network of originators in Canada and the United States.

Co-founders of Lendified, Troy Wright and Kevin Clark are very pleased with the arrangements that have been put in place. “Lendified now has the capital it needs to grow the lending component of the company’s strategy,” says Troy Wright, CEO. “This financing marks the next step in the company’s strategy of moving the loan book to a position of strength and sustainment. The benefits of working with Liquid Capital on not only this financing but with a number of potential synergies for both parties makes this financing that much more appealing.” Kevin Clark, Lendified’s President notes the alignment with a number of companies within the financial services world under the umbrella of Next Edge makes this opportunity very strategic and presents a number of tremendous opportunities in the future for broader business development within the financial services world in Canada and beyond.

About Lendified:

Founded in early 2015, Lendified Holdings Inc. and its subsidiaries are engaged providing in a number of financial services products and related services within the small business eco-system through www.lendified.com and for offering a Software as a Service subscription model of their credit risk adjudication platform www.lendifiedplatform.com , used by third party financial services firms in the assessment of small business risk.

For more information, visit www.lendified.com

About Liquid Capital:

Since 1999, Liquid Capital Corporation has been operating in the factoring and trade finance business. Over that period of time, the company has processed well over $2 billion in accounts receivables and trade finance transactions through both its Canadian headquarters in Toronto and US headquarters in Dallas. The company also has a master franchise relationship inMexico. Through its 80+ franchised office network, the company locally originates, manages, and funds accounts receivables, asset based lending and trade finance transactions.  Further information can be found at www.liquidcapitalcorp.com.

About Next Edge Capital:

Next Edge was formed through a management spin out of the Canadian office of Man Investments Canada Corp. in 2014.

Next Edge searches the world for investment managers and strategies that aim to deliver robust risk-adjusted performance. The yields available today from traditional fixed income investments are at all-time lows. One area where there are still opportunities for significant yield generation with security is Private Lending. Next Edge’s first two offerings in this space – the Next Edge Private Debt Fund and the VPC Specialty Lending Trust seek to capitalize on this opportunity. For more than a decade, the Next Edge management team has provided access to unique strategies before they have become widely known. Further information can be found at www.nextedgecapital.com.

SOURCE Lendified Inc.

Rio Welcomes The Launch Party For Inaugural ArtsGames

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The Olympics have come to Rio, amidst much fanfare and swarms of media attention. But there’s another hot ticket in town, and you’re going to be hearing a lot more about it in the near future.

The inaugural ArtsGames is a global competition that was created byOlympian Sylvia Sweeney. As the niece of the late and iconic jazz musician Oscar Peterson, Sylvia wanted to create an equally iconic event that would bring cultures together. And other than sport, what better way to do that than the arts?

With a mission “to provide a global platform to demonstrate the excellence that exists in all cultures,” the ArtsGames is ready to take on the world of arts in fine form. Sweeney has hosted several related events over past Olympics, however, this year marks the introduction of the formal ArtsGames, combining her love of sport, music and cultural togetherness.

The inaugural ArtsGames will be hosted in 2018, with the audition process beginning in 2017.

Liquid Capital has been a proud sponsor of the ArtsGames since 2008, and we wanted to showcase this event, bringing attention to its involvement at the Rio Olympic Games and how to get involved.

PLACE des Arts

What are the ArtsGames?

On January 12, 2018, the ArtsGames will be welcomed by host city, Montreal, Canada.

This spectacular 10-day event will feature over 20,000 competing artists from around the world, representing their countries in live nation vs. nation events spanning five categories: Music, Dance, Literature, Media Arts and Visual Arts.

Over the course of the ArtsGames, artists will compete in over 20 venues for one of the 144 medals that will be awarded.

artsgames-montreal

This is no small affair, as the ArtsGames committee anticipates  “1 billion+ online and broadcast viewers from 196 countries will watch as artists set a new standard for global excellence.”

Every two years, the events will be hosted in a new city and countries will have the chance to send their best and brightest artists to compete in what will surely be an awe-inspiring competition.

Competing and the “Audition” process

Just as with the Olympic Games, competition in the ArtsGames will be fierce. And qualifying to participate will require dedication and expertise in one’s field.

“Held every two years starting in 2017, The Auditions will host artists who have risen to the top in global competitions through our sanctioned federations, ArtsGames online competitions, and through ArtsGames Scouts-at-large.”

As the headquarter city for this new global event, Montreal will also play host to the final qualifying stage of The Auditions every two years. Touted for valuing “the arts as much as it values cultural diversity,” the city matches the founding principals of the ArtsGames.

Although the process doesn’t officially begin until August 2017, artists are already encouraged to follow ArtsGames for qualifying competitions.

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With Olympians on board and a full team in place, there is no better place to officially launch the ArtsGames than at Rio 2016. On August 11, 2016, the ArtsGames will be presented to the world, complete with star-studded performances.

As a proud sponsor of the ArtsGames, we encourage you to follow the organization and participate in events. Good luck to all competitors! 

Images via ArtsGames.com

New Tampa Bay Area Entrepreneur Launches Company to Support Small Business Growth

TAMPA BAY, Fl. (August 9, 2016) – Mark Coyle announced the opening of his Bay Area Liquid Capital business, which offers alternative commercial funding for small and medium-sized businesses in the Bay Area. For smaller startup businesses in dramatic growth phases, and more established companies that may have had a trigger event like the need for manufacturing and equipment upgrades, the lending products from Bay Area Liquid Capital can be a saving grace.

“I connect with other entrepreneurs and business savvy individuals who need a partner. I don’t directly look for customers that are having cash flow issues, but as the need for working capital arises, the products available can help get clients through the next level of their business.”

With over 15 years experience in sales and 8 years in consumer packaged goods, Mr. Coyle understands the challenges faced by business owners. In addition, Mr. Coyle sees the Bay Area business network as a significant strength and benefit for his clients.

“As a member of the Greater Tampa Chamber of Commerce, the Manatee Chamber of Commerce, Commercial Finance Association, as well as groups like the Association for Corporate Growth, I’ve been widely connected to the great financial professional network. There’s a great crossover with membership, including commercial bankers, business consultants and CPAs who I can work with to help my clients find solutions to meet their cash flow requirements,” Mr. Coyle states.

Making the connections between the financial sector and business owners offers Mr. Coyle’s clients an advantage not possible with other alternative lenders.

“My referral partners have a high level of confidence dealing with me because I have my personal capital invested in the financing, which creates a more client-focused relationship. My clients aren’t underwritten, funded and then passed off. I work directly with each of my clients throughout the entirety of the relationship.”

“I strive to work with my partners and clients face-to-face. That’s an important part to know you’re dealing with someone who truly cares about your business success. Making connections with other entrepreneurs is valuable because we’re in it together and understand each other’s challenges. It really drives me to want to help them.”

This differentiates Mr. Coyle and his Bay Area Liquid Capital business from other competitors who may not have the same passion for mutual success. Growing his business in the Bay Area, Mr. Coyle also shows his appreciation for his community.

“Part of my personal belief is being socially responsible and giving back to the community. We have a large military base here and a large surplus of military men and women coming out of the service. As my company grows, I want to be able to offer those people a position within my company.”

About Liquid Capital

Liquid Capital is a full-service working capital and trade finance network and has been in operations since 1998. The Liquid Capital network has the largest geographic footprint of alternative funding professionals, with over 80 independently owned businesses across North America, offering clients a customized and flexible approach with local decision makers. We offer a complete range of solutions for all industries and provide immediate financing upon approval with no long-term contracts or hidden fees. At Liquid Capital, we help you grow your business.

To learn more about Bay Area Liquid Capital, please contact
Mark Coyle
Bay Area Liquid Capital
Saint Petersburg, FL 33702
Call: 727.329.6030
Mobile: 813.766.6790
mcoyle@liquidcapitalcorp.com

invoice-processing-1

How To Increase Your Business Liquidity Through Prompt Payment Of Current Invoices

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Cash flow and liquidity is a challenge for all businesses at one point or another.

Part of the problem might not be your business at all, but rather, it could be that your clients haven’t paid invoices on time.

Or your company is growing much quicker than expected. In this case, you could do so much more if you had access to the cash that will eventually come in when your accounts receivable are paid.

In other cases, it could be that an unexpected event occurred like major equipment damage or an unexpected product delivery schedule change. Any major event could put your company cash flow into crisis, and the possible tailspin can put any business owner into fright.

An Innovative Solution to Invoice Processing

Whatever the issue, there’s a solution to speed up your invoice processing called “accounts receivable financing” that can be a huge relief.

Also called “factoring,” this is an innovative way for your business to access quick and secure financing through the sale of your invoices. We specialize in this financing at Liquid Capital, and can offer up to 85% of the value of your accounts receivable, which you can then use as you need.

And this can be a liberating strategy to free up working capital on an ongoing basis. Your only limit is your ability to sell to credit-worthy customers. We collect the financed debts from your customers, which frees up your admin time and takes the headache out of your A/R process. But you’re not in the dark, as we also provide clear, accessible reporting to keep you up to date on the process. 

Where a bank loan might be denied, A/R factoring could potentially advance you hundreds of thousands of dollars—in a very short timeframe. 

Many SMBs can’t access traditional bank loans all of the time. They could be extended already with bank debt, have an untraditional business model that the banks aren’t yet comfortable with or a host of other points that don’t satisfy the institution at that point in time.

This isn’t to say that a bank loan isn’t possible in the future, but in the meantime using accounts receivable financing can be the exact answer needed.

Get the full details on accounts receivable financing here.

promotion-tricks

8 Ways to Promote Your SMB Like a Boss

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We help businesses grow by accessing much-needed capital they can use for activities like equipment purchases, operational support and fulfilling product orders.

But how do you promote your business to get the word out to your customers and prospects?

That’s just as important, and finding the right tactics that are cost-effective and don’t consume all your time is the key. So let’s take a look at eight actionable ways to promote your SMB like a pro and get connected to new customers that will become long-term clients.

1. Special for First-Time Customers

Nothing entices new customers more than getting a special deal, like a trial version of your product or service at a discounted rate. This kind of offer might lead to a longer-term business relationship.

2. Reward Loyalty

Loyalty breeds more loyalty, so reward your committed customers. Give them a discount or upgrade their service for staying with you or for bringing you new customers through a referral.

3. Do Something for Charity

It’s good to be good, and donating your product or service to a charity will allow you to raise your profile, network and meet potential new customers. Promote your good deeds and achievements via social media and your website. Your customers will love hearing about your involvement.

4. Survey your Customers

People love competitions and the chance to give their opinion. Create a simple survey using SurveyMonkey (free options available) and promote it via your company newsletter, a special mailing list, email directly to the client, social media promotions, blog posts, websites and anywhere your customers will look. You can then create a newsworthy press release with your results, and use the data to improve your business strategy.

Related: 7 Old-School SMB Marketing Tricks to Put Up Your Sleeve

Related: 7 New-School Digital Marketing Tricks For Your SMB

5. Sponsor Something Magnificent

Look around for incredible and unique sponsorship opportunities. There are some hidden gems out there that deliver a big bang for surprisingly small price tags. Depending on your business, you can consider everything from industry events to local teams.

6. Customer Service

Good customer service is critical for customer retention and positive word of mouth. And you can use your great customer service scores to promote your company, especially if you’ve received industry or internal ratings. Add your high-quality scores to the homepage of your website, in email signatures, and create a blog post about your service. Your customers may already be providing free advertising – touting the amazing service they’ve received from you. So check sites like Yelp for your reviews, and capture positive quotes from those sites to potentially leverage in future advertising.

7. Go Green

Showing people that you care about the world is a great way to get them to care about your business. So why not go green and trumpet your environmental credentials? You’ll target a market that cares about the environment, and show a more personal and caring side that customers can relate to, rather than a corporate brand that sometimes gets lost in the noise.

8. Meetups

Networking is the lifeblood of business. Make sure you find the right events – avoid the stuffy, boring and irrelevant ones. Go online, ask around and book yourself into a couple new meetups. These can be invaluable places to learn about other people’s businesses and to promote your own in a genuine way. There’s no easy way about this though, as meetups are all about building high-quality relationships with real people. Arm yourself with business cards, a warm smile and no expectations – you’ll be happy you went.

Do you have a tip to share about how your business has effectively done promotions? Tell us in the comments section.

Recent Fundings – August 2016