Liquid Capital Bay Area Principal, Mark Coyle, recently took to the airwaves on The Consumer Quarterback Show based out of Tampa Bay to talk about the state of the Florida economic market and how his business can help small and medium-sized businesses in the area.
Live from iHeartRadio, show host, Brandon Rimes, talked to Mark about different types of loans and funding he has available to work with businesses and get them moving in the right direction.
“I’m a local lender that is part of a global network of alternative lenders. Essentially what we do is help small to medium-sized enterprises with working capital solutions,” Mark explained.
“In the business to consumer world, when we go into a small business owner and purchase a good or service, we will pay the same day. ”
“Whereas when you’re in the business to business world and you deliver a good or service…you don’t get paid for anywhere from 30, 60 or 90 days.”
Mark explains that he generally works with two types of clients in this situation. The first is people who have what he calls “good problems.” These clients can be earlier in their business lifecycle, and have received a loan for startup capital but have outgrown that loan very quickly.
“..maybe they were projected to get growth of 20% and they received a growth of 100 or 200% – and they simply don’t have the working capital to facilitate the growth opportunities that are in front of them,” Mark goes on to explain.
“I’m able to help them to shorten the lifecycle of those receivables by factoring and advancing the majority of capital against that receivable so that they can make payroll, replenish their inventory, continue to deliver the goods or services to their clients, and grow with demand.”
The second group of clients Mark works with are people who have successfully received bank loans over a longer period of time and found success, but now they have a “trigger event” that requires more assistance.
“Maybe they had a piece of capital equipment that was $500,000 that went out. They weren’t budgeted to replace it, so they replace it and are overleveraged. And the bank doesn’t feel warm and fuzzy about extending them a line of credit. So where I come into place is to assist them with, again, working capital solutions to better their financial picture and get them back to a bankable situation.”
Mark explains that his products and services are not in conflict with banks, as he works with the banks to help get clients back into a traditional bankable situation. Once they get the assistance from Liquid Capital Bay Area, his clients’ books look a lot better from a bank point of view, so they can go ahead and get traditional funding.
When it comes to the local Florida and Bay Area economy, Mark sees a positive future.
“I think the local economy is doing very well. From a larger perspective, I think there’s a lot of capital. I think the market is plush with money. …
And that speaks well to the opportunities Mark can afford business owners in the area.
“We are seeing businesses that kind of fall under the two buckets I spoke of – having growth trajectories or maybe having a bump in the road, and we’re able to come in and help them realize that growth or keep them sustainable and get them through the hard times.”
Brandon asked what businesses owners should avoid when looking for funding and assistance, and Mark offered sensible advice
“What I would say to a small business owner who has a growth opportunity in front of them or is in danger of insolvency and isn’t able to get bank financing is — think outside the box and don’t stop there, because there are other options.
“There are opportunities that don’t fall within the traditional financing realm. …
“Partner with somebody who has your best interests in mind. Me, as a local business owner that partners with local business owners to better their situation, I’ll walk away from a deal 10 times out of 10 if it’s not the best for them. And there are many times where I’ve looked my customers in the eye and said – look, I can put you in a product that will make my company money but it won’t better my situation – you’re either in the same spot or worse. Let’s come back and talk in six months.”
Mark closes by advising business owners to make sure they’re working with a company that has your best interest in mind.
“And I think it’s definitely a good opportunity to deal local, where you can sit down over a cup of coffee…and know who you’re dealing with. Not a website, not a phone number and not dealing with somebody five states away.”