NACLB (National Alliance of Commercial Brokers) conference has long been recognized as a focal point for brokers and funders in the alternative financing industry. It’s a place where ideas converge, insights are shared, and partnerships are forged. This year, CapFlow is proud to be a sponsor of this vibrant ecosystem, offering you a chance to connect with us in person and discover how our expertise can complement your business aspirations!
Tailored Solutions: At CapFlow, we understand that every project and venture is unique. Our strength lies in crafting personalized financing solutions that aligns with your specific goals. Meeting us at NACLB gives you the chance to discuss your needs and explore how our tailored approach can make a significant difference.
Industry Insights: NACLB is not just about transactions; it’s a platform for knowledge exchange. CapFlow representatives will be actively participating in discussions and sessions where we’ll be sharing insights on industry trends, challenges, and opportunities.
Collaborative Potential: As a forward-looking company, CapFlow believes in the power of collaboration. By meeting us at NACLB, you’re not just connecting with a funder; you’re opening the door to potential partnerships that can drive mutual growth. We’re excited to learn about your vision and explore how we can contribute to your success!
Visit Our Booth: Swing by the CapFlow booth #402 to meet our representatives in person! We are here to answer your questions, highlight our services, and discuss how we can support your projects.
Engage in Discussions: Look out for our participation in expert panels and discussions. These sessions provide an excellent opportunity to interact with our team and gain insights that can reshape your business strategies.
One-on-One Meetings: To ensure that we give you our undivided attention, we are offering one-on-one meetings. Schedule a session with us to delve deeper into your specific needs. Moreover, take the opportunity to discover how CapFlow can enhance your path to success.
The NACLB 2023 conference spans three days, featuring activities such as sponsor set up, a golf outing, informative seminars, breakout sessions on various topics, networking opportunities, a keynote speech by George Edward Foreman, and a closing lunch with an awards ceremony.
The NACLB 2023 conference kicks off on Day 1, Tuesday – 09/26/2023, with a flurry of activities. The registration desk opens at 11:00 AM in the General Session Area, marking the official start of the conference.
Later in the afternoon, from 2:00 PM to 5:00 PM, participants can engage in the Marketing Seminar held in the General Session Room. As the evening approaches, the Exhibit Hall Hours take place from 4:00 PM to 6:00 PM in the Julius Ballroom, providing an opportunity for networking and exploring various exhibits. The day concludes on a high note with the Opening Cocktail Reception at the Omnia Night Club, scheduled from 7:00 PM to 9:00 PM.
On Day 2, Wednesday – 09/27/2023, the conference continues its packed schedule. The day begins with the Registration Opens at 7:00 AM in the General Session Area, followed by a Breakfast/Networking/Exhibit Hall Hours session from 7:30 AM to 8:30 AM in the Exhibit Hall. The day continues with engaging Breakout Sessions on several topics. The Main Conference Keynote from 1:00 PM to 2:45 PM in the General Session Room features George Edward Foreman, a former professional boxer, entrepreneur, minister, and author. The day winds down with a Snack/Networking Break/Exhibit Hall Hours from 3:00 PM to 3:25 PM in the Exhibit Hall. Ending the day with the continuation of Breakout Sessions from 3:30 PM to 4:25 PM.
Don’t miss our CEO, Andrew Coon, on ‘Today’s Resources for Brokers’ panel! Join us in breakout room Julius 22, Wednesday at 3:30 PM, where Andrew Coon and fellow panelists will share invaluable insights for Brokers!
Day 3, Thursday – 09/28/2023, marks the final day of the conference. It begins with Breakfast & Networking from 7:30 AM to 8:45 AM. Attendees can engage in a General Session Panel: The Reporter’s Viewpoint from 9:00 AM to 9:45 AM in the General Session Room. Followed by another insightful panel, Learn from Successful Brokers, from 9:45 AM to 10:30 AM. The day continues with a series of Breakout Sessions from 11:00 AM to 11:55 AM. These session will provide attendees with opportunities to delve into specific topics. The conference concludes on a high note with a Closing Lunch & Awards Ceremony from 12:00 PM to 1:30 PM in the General Session Room. The final hours of NACLB 2023 are reserved for End Events from 1:30 PM to 3:00 PM.
At CapFlow, our focus is on helping you achieve your goals. NACLB 2023 provides the ideal backdrop for us to connect and share our expertise. Whether you’re seeking innovative financing solutions, industry insights, or valuable partnerships, we’re excited to be a part of your journey.
In the construction industry, projects move forward at an accelerated pace, requiring precise coordination, resources, and consistent cash flow. For construction companies, managing operational costs, meeting payroll, and procuring materials often necessitate a constant inflow of funds. Enter invoice factoring, an innovative financial solution that has emerged as a lifeline for construction firms seeking to optimize their financial strategies and sustain growth.
The construction industry is characterized by unique financial challenges. Long project timelines and staggered payment schedules mean that construction companies frequently wait for extended periods to receive payments for completed work. This gap between completing a project phase and receiving payment can place significant strain on cash flow. This may hinder day-to-day operations and the pursuit of new opportunities.
Moreover, construction businesses often grapple with the cyclical nature of the industry. Fluctuating demand, seasonality, and economic shifts can lead to irregular income streams, making it challenging to predict and manage cash flow effectively.
Invoice factoring has emerged as a dynamic solution that addresses the financial challenges specific to the construction sector. This financing method involves partnering with a factoring company that advances a significant portion of the outstanding invoice’s value upfront. Instead of waiting for clients to pay, construction companies can access immediate funds, empowering them to cover operational costs, invest in growth, and capitalize on upcoming opportunities.
Engagement: The construction company provides services or completes a phase of a project for a client.
Invoice Generation: An invoice is issued to the client for the completed work or services.
Factoring Agreement: The construction company enters into a factoring agreement with a factoring company. The factoring company evaluates the invoice’s validity and approves the advance.
Advance: The factoring company advances a significant percentage of the invoice’s value, typically ranging from 70% to 90%.
Client Payment: The client pays the invoice to the factoring company on the agreed-upon due date.
Final Settlement: Once the factoring company receives the full payment from the client, they deduct their fees and return the remaining balance to the construction company.
Invoice factoring injects a consistent cash flow into construction businesses, enabling them to meet payroll, cover operational costs, and seize opportunities without delays.
By bypassing traditional lengthy payment cycles, construction companies can reduce payment delays and maintain a healthier financial position.
Invoice factoring is flexible, as the amount advanced is directly tied to the value of invoices. Furthermore, this adaptability aligns with the varying financial needs of construction projects.
Steady cash flow allows construction companies to take on more projects. As well as pursue larger contracts and expand their services, driving sustained growth.
Invoice factoring doesn’t create debt, as it involves the advancement of funds for work already completed. This distinct advantage sets it apart from traditional loans.
By outsourcing the collection of payments to the factoring company, construction firms can focus on core operations, project management, and delivering quality services.
Choosing the right factoring company is crucial for a successful partnership. Factors to consider include the factoring company’s reputation, experience in working with the construction industry, transparency about fees, and their ability to adapt to your business’s unique financial needs.
Invoice factoring is a transformative financial solution for construction companies, offering a streamlined approach to managing cash flow challenges and accelerating growth. By partnering with a reputable factoring company, construction firms can ensure a steady inflow of funds, enhance financial stability, and capitalize on opportunities that drive industry success. In the fast-paced world of construction, invoice factoring is a strategic tool that empowers companies to navigate financial complexities with confidence.
Securing the right financial resources is important for small business success. Businesses require a robust capital foundation to fuel growth, innovation, and daily operations. Mastering this can be a complex task, but armed with the right insights and strategies, companies can secure the funding solution they need to flourish.
Commercial business financing encompasses a diverse array of funding options, each tailored to specific business needs and stages. Commonly, people tend to consider traditional bank loans as the primary solution for obtaining business funds. Nonetheless, these loans often come with rigorous eligibility criteria and a lengthy application process, which might not be the best fit for businesses in need of rapid financing. Venturing into the realm of alternative financing solutions, we encounter a range of innovative options.
Invoice Factoring is a dynamic approach where businesses leverage their accounts receivable to secure immediate capital. This solution allows companies to unlock funds tied up in unpaid invoices, ensuring consistent cash flow to fuel operations.
Merchant Cash Advances are tailored for businesses with fluctuating revenue streams. This option allows businesses to access a lump sum upfront in exchange for a percentage of future credit card sales. This flexibility suits companies that experience seasonal variations in income.
For businesses needing interim financing, Bridge Loans provide short-term funds that bridge the gap between immediate needs and more substantial, long-term financing. This solution is ideal for those seeking timely capital infusion during transitional phases.
Term Loans provide a classic financing approach, involving a lump sum borrowed and repaid over a set period, often with a fixed interest rate. These loans are versatile and can be used for various purposes, from expansion to equipment purchases.
Equipment Financing caters specifically to businesses that require machinery, technology, or equipment to operate. This option allows companies to secure funding while using the equipment itself as collateral.
In scenarios where a business receives a large order but lacks the funds to fulfill it, Purchase Order Financing steps in. This solution provides the necessary capital to fulfill orders, with the purchase order itself serving as collateral.
Crafting a strategic approach is imperative for businesses to navigate the realm of commercial financing effectively, tailoring it to their distinct requirements. The crux lies in clarifying the funding purpose—be it launching a novel product, expanding operations, or managing working capital. Such lucidity guides the financing selection and signals preparedness to potential backers.
Equally vital is comprehending the financial landscape. A profound grasp of the company’s current financial state, creditworthiness, and market position informs the choice of feasible financing avenues.
Mitigating risk stands as a pivotal aspect of any strategy. Furthermore, businesses should contemplate diversification—relying solely on one funding source can expose a business to unforeseen shifts. Through a blend of options, diversifying funding reinforces operational robustness and augments growth prospects.
Developing robust relationships with funders can be transformative. Networking within the business community and participating in industry events can lead to invaluable connections with potential financial institutions. Overall, these relationships offer insights, guidance, and even introductions to financiers who share the business’s vision.
Moreover, transparency takes center stage when approaching funders. Communicating the business’s financial status, growth potential, and how the funding will be utilized fosters trust and credibility. A meticulously prepared business plan that outlines the company’s strategy, market analysis, financial projections, and potential risks can present a compelling case for financial support.
The realm of commercial business financing continues to evolve, driven by technological advancements and shifting consumer behaviors. Navigating the intricate landscape of commercial business financing demands a fusion of strategy, comprehension, and relationship-building. With a spectrum of financing options at their disposal, businesses can tailor their approach to align with their goals and growth aspirations. Whether opting for traditional bank loans, alternative financing solutions, or a mix of both, meticulous preparation, transparency, and a commitment to fostering robust connections within the business and financial communities are pivotal. As the financing landscape continues to evolve, adaptable businesses stand poised to secure the funding essential for their flourishing.
In marketing, creativity, and innovation drive campaigns, while effective execution leads to financial success. Maintaining a healthy cash flow is vital for marketing companies to seize opportunities, meet deadlines, and sustain growth. Invoice factoring has emerged as a strategic financial solution that injects vitality into cash flow, allowing marketing firms to thrive.
Marketing companies face unique cash flow challenges due to the nature of their business model. Projects often span several weeks or months, requiring substantial upfront investment in creative development, client meetings, and campaign execution. Yet, payment from clients is often subject to extended terms, causing a disconnect between cash outflows and inflows.
Moreover, the unpredictable nature of client payments and irregular project cycles can result in fluctuating income streams. This volatility makes it challenging for marketing companies to budget effectively, leading to potential gaps in meeting operational expenses, payroll, and other financial commitments.
Invoice factoring presents a tailored solution to address the cash flow challenges that marketing companies encounter. By partnering with a factoring company, marketing firms can convert outstanding invoices into immediate cash, bypassing the wait for client payments.
The process is simple:
Service Delivery: The marketing firm provides services to the client, such as campaign creation, content development, or digital strategy implementation.
Invoice Issuance: An invoice is generated and sent to the client for the completed services.
Factoring Agreement: The marketing company enters into a factoring agreement with a factoring company. The factoring company evaluates the validity of the invoice and approves the advance.
Advance: The factoring company provides an upfront advance, usually ranging from 70% to 90% of the invoice value.
Client Payment: The client pays the invoice amount directly to the factoring company on the agreed-upon due date.
Final Settlement: Once the factoring company receives the full payment from the client, they deduct their fees and return the remaining balance to the marketing company.
Invoice factoring ensures a steady stream of funds, enabling marketing firms to cover overhead costs, payroll, and operational expenses without disruptions.
With immediate access to working capital, marketing companies can take on more projects, pursue larger clients, and expand their services, contributing to sustained growth.
Predictable cash flow empowers marketing companies to create accurate financial forecasts, enabling better decision-making and strategic planning.
By eliminating the stress of waiting for payments, marketing teams can focus on what they do best: creating compelling campaigns and delivering results for clients.
Invoice factoring doesn’t involve incurring debt, as it leverages assets that the marketing company already possesses—the outstanding invoices.
Outsourcing the collection of payments to the factoring company streamlines administrative tasks, allowing marketing firms to concentrate on core functions.
Choosing the right factoring company is pivotal for a successful partnership. Things to consider include the factoring company’s reputation, experience in working with the marketing industry, transparent fee structure, and the ability to adapt to the unique needs of marketing firms.
In the fast-paced and innovative realm of marketing, a steady cash flow is the lifeline that fuels creativity and sustains growth. Invoice factoring has proven to be an energizing solution that bridges the gap between services rendered and client payments. By utilizing this financial strategy, marketing companies can overcome cash flow challenges, seize opportunities, and focus on delivering impactful campaigns that drive success in the competitive landscape. Invoice factoring is the catalyst that empowers marketing companies to channel their energy into what truly matters—inspiring audiences, exceeding client expectations, and thriving in the dynamic world of marketing.
Small and medium-sized businesses often face financial challenges in the competitive business landscape. One such challenge is managing the capital flow and dealing with outstanding invoices while pursuing new growth opportunities. Factoring and bridge loans are two financial instruments that have proven effective in addressing these concerns. When combined, they can create a powerful strategy for SMEs to graduate to the next level of success.
Factoring is a financial arrangement in which a business sells its accounts receivable (unpaid invoices) to a third-party financing company. In return, the factoring company provides an immediate cash advance, usually around 70% to 90% of the total invoice value. The remaining balance, minus a small fee, is released to the business once the factoring company collects the payment from the customers.
Factoring offers several benefits for businesses. It improves cash flow by converting pending invoices into readily available funds. Which enables businesses to pay employees, cover operational expenses, and invest in growth initiatives without waiting for customers to clear their dues. Moreover, factoring is easier to obtain than loans. Making factoring an attractive option for businesses with limited credit history or poor credit scores.
As SMEs grow, they often encounter multiple lien positions on their assets. A lien is a legal claim that a creditor has on an asset until a debt is paid off. When a business seeks additional financing or wants to consolidate its debt, the presence of multiple lien positions can become a significant obstacle. Traditional lenders may be hesitant to extend credit to companies with numerous liens, as it increases the risk associated with recovering their investment in case of default.
Bridge loans can be the solution to this predicament. A bridge loan is a short-term loan that “bridges the gap” between a company’s immediate financial needs and the long-term financing solution. It acts as a temporary funding source that provides the necessary liquidity until more permanent financing can be secured. Or until the outstanding debts, including liens, can be consolidated.
Bridge loans are particularly useful for businesses seeking to consolidate multiple liens into a single lien. This can simplify their financial structure, making it more attractive to potential funders. By consolidating liens, a company can reduce the overall risk profile. Additionally, they can increase chances of obtaining additional financing at favorable terms in the future.
Bridging loans offer a lifeline to address urgent financial needs for both individuals and businesses. They fill the gap when funds are required but not readily accessible. Which provides flexible financing options tailored to various demands. While they allow quick access to substantial funds, bridging loans are typically secured. Meaning there is a risk to the collateral if not repaid. Be mindful of any costs involved and plan your repayment strategy wisely to harness the benefits responsibly.
On the positive side, bridge loans facilitate timely purchases, support businesses’ cash flow, and unlock financing opportunities. With informed decisions and responsible usage, a bridge loan can be a favorable option for those seeking substantial capital and considering invoice factoring to quickly access funds.
Combining factoring with a bridge loan can be a powerful strategy for SMEs looking to graduate to the next level of financial stability. Here is how the process works:
Factoring to Improve Cash Flow: The business leverages factoring to access immediate funds from unpaid invoices. This influx of cash helps cover operational expenses, pay employees, and invest in growth opportunities.
Bridge Loan for Lien Consolidation: With improved cash flow and a more stable financial position, the business can secure a bridge loan to consolidate multiple lien positions into a single lien!
Future Financing Opportunities: With consolidated liens and improved financials, the SME is now better positioned to seek additional financing at more favorable terms from funding sources. The bridge loan serves as a stepping stone toward securing more permanent financing solutions.
For businesses striving to overcome financial challenges and pursue growth, factoring combined with a bridge loan can be a winning strategy. Factoring improves cash flow and provides immediate working capital, while a bridge loan helps consolidate multiple lien positions, simplifying the financial structure and increasing the business’s appeal to funders. By embracing these financial tools, businesses can graduate to a more secure future.
When businesses face cash flow challenges or seek financing solutions to fuel growth, traditional bank loans may not always be the best fit. In such scenarios, invoice factoring emerges as a valuable alternative. Factoring offers a way for businesses to access immediate capital by selling their outstanding invoices to a funding company.
Factoring is a financial transaction where a business sells its accounts receivable (invoices) to a factoring company at a discounted rate. The company advances a percentage of the invoice value to the business upfront, typically between 70% to 90%, and assumes the responsibility of collecting payments from the business’s customers. Once the customers settle the invoices, the factoring company releases the remaining balance, minus a fee for its services. This arrangement helps businesses access working capital quickly without incurring debt.
One of the primary differences between factoring and traditional business loans is the collateral requirement. For business loans, banks typically require collateral. Such as real estate or valuable assets to secure the loan. In contrast, invoice factoring focuses on the creditworthiness of the invoiced customers. Ultimately reducing the need for physical collateral.
Obtaining a traditional business loan often involves a lengthy credit check and approval process, which can be time-consuming and burdensome for small businesses. Factoring, on the other hand, places more emphasis on the creditworthiness of the business’s customers. Factors are more concerned with the creditworthiness of the customers who owe money on the invoices. Rather than the credit history of the business itself.
Factoring accelerates cash flow by converting outstanding invoices into immediate cash. This influx of funds empowers businesses to cover operational expenses, invest in growth opportunities, and meet financial obligations without waiting for payment from customers.
Unlike traditional business loans that involve extensive application and approval processes, factoring provides quick access to capital. Once a factoring agreement is in place, funds can be available within days. Making it an attractive option for businesses in need of urgent financial support.
Since factoring is not a loan, businesses do not incur debt when selling their invoices. It allows companies to access working capital without taking on additional financial obligations or affecting their credit standing.
Outsourcing accounts receivable management to a factoring company allows businesses to focus on core operations while leaving the task of collections and credit checks to the factoring company. This can lead to improved credit management and reduced instances of bad debts.
The factoring process begins with the business applying for funding through the factoring company. The factoring company conducts due diligence, evaluating the business’s invoiced customers’ creditworthiness and the quality of the invoices.
Once the application is approved, they present a factoring proposal outlining the terms, fees, and advance rate. If both parties agree, they sign a factoring agreement.
The business submits the selected invoices to the for verification and funding. The factoring company advances a percentage of the invoice value to the business, typically within 24 to 48 hours.
The funding company takes over the collection process and works directly with the business’s customers to receive payment on the invoices. Once the customers settle their invoices, the company releases the remaining balance to the business. Minus the agreed-upon fee.
Choosing the right factoring company is crucial to a successful factoring experience. Research and select a reputable and experienced company that specializes in your industry and understands your business needs.
Understand the fees associated with factoring, including discount rates, service charges, and any additional costs. Compare these rates with the benefits provided by the factoring company to ensure the arrangement is favorable for your business.
Consider the impact of factoring on your customer relationships. Transparent communication with customers about the arrangement can help maintain strong relationships and mitigate any potential concerns.
In response to higher interest rates and the stress caused by inflationary pressure, banks have been adopting tighter lending criteria. Making it increasingly difficult for small businesses to secure loans and working capital. Entrepreneurs from various industries are encountering obstacles in obtaining new loans and experiencing reductions in existing credit lines. This shift in lending standards has resulted in more stringent terms, higher borrowing costs, longer processing times, and increased scrutiny from bankers. These developments have significant implications, impeding the growth of small businesses and limiting their ability to invest in expansion and innovation.
Multiple factors contribute to the tightening of lending standards by banks. One key driver is the efforts of central banks, such as the Federal Reserve, to address concerns about inflation by raising interest rates. The variable interest rate for small business loans to prime borrowers surged to 7.9% in the first quarter of 2023. This marks an increase from 7.52 in Q4 2022, indicating a substantial upward trajectory that experts project will endure. As banks strive to retain depositors and prevent funds from being diverted to higher-yielding investments, the cost of borrowing for small businesses increases. Additionally, banks are becoming more cautious due to factors such as falling asset values, deteriorating credit quality, and a reduced appetite for risk. The collapse of certain financial institutions has also played a role in heightening concerns about liquidity. Further prompting banks to tighten their lending criteria.
The impact of the tightened lending standards can be seen in the experiences of small businesses across the board. For instance, some businesses have witnessed a reduction in their credit lines due to changing bank policies. As a result, these companies have had to reassess their growth plans and postpone investments in new infrastructure or facilities. The challenges posed by higher interest rates and stricter terms have encouraged small business owners to explore alternative options. For example, financing products such as invoice factoring or revenue-based financing.
According to recent surveys conducted by financial institutions, a significant number of banks have reported implementing stricter loan approval processes for small businesses. This trend indicates a growing reluctance to extend credit to small businesses, further exacerbating the challenges faced by entrepreneurs. Moreover, we anticipate that these lending standards will tighten even further in the upcoming months. The prevailing high-interest rates additionally compound the reluctance to lend. The reluctance to lend is further compounded by the prevailing high-interest rates. Deterring small businesses from seeking loans to fund their operations and growth.
Banks’ decisions to tighten lending standards are often influenced by their anticipation of economic downturns and a potential rise in unemployment. In an effort to mitigate risks associated with economic cycles, banks proactively adopt stricter lending criteria. Paradoxically, these more stringent standards can contribute to a slowdown in the business cycle. Making the economic downturn and rise in unemployment more likely.
The tightening of lending criteria by banks has presented significant challenges for small businesses seeking financing. With stricter terms, higher borrowing costs, and increased scrutiny, entrepreneurs are facing obstacles in accessing the necessary funding to support their growth and expansion plans. As the lending landscape continues to evolve, small businesses may explore alternative financing options and adapt to these changing conditions to thrive.
Amid the heightened requirements resulting from the inflation surge, small businesses are advised to explore alternative financing options to meet their working capital needs. One such option worth considering is invoice factoring, which offers distinct advantages over traditional bank loans. Unlike a loan, invoice factoring does not entail the same stringent qualification criteria. Making it a more accessible and convenient choice for small businesses to acquire working capital.
CapFlow Funding Group stands ready and committed to supporting businesses in these challenging times. With our extensive portfolio of financing products and our ability to cater to various industries, we are well-positioned to assist businesses in achieving their goals. Our swift response and efficient funding process ensure that businesses can access the capital they need in a timely manner.
We acknowledge the unique difficulties faced by entrepreneurs, particularly in today’s uncertain landscape. We are unwavering in our dedication to providing the support they require. At CapFlow, we prioritize our clients’ success and remain steadfast in our promise to be a trusted partner for businesses seeking financial solutions.
