NEWSLETTER
September 2022
Financing for Mergers and Acquisitions Does Not Have to be Complicated
Registration for the October Funding Strategies Conference is now open!
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The Funding Strategies Conference is the place to gain insight about stress-free competitor buyouts from those in the know. Join our next roundtable discussion focusing on Opportunity Funding, Mergers and Acquisitions and how to avoid costly mistakes. Our panel is made up of experienced professionals from banks, SBA lenders, alternative lenders venture capital, including angel and private equity investors. This webinar will cover the latest trends, strategies, and financial obstacles in our ever-changing volatile financial marketplace.
The Funding Strategies Conference has planned a wide-ranging slate of free financial webinars covering businesses topics including smart loan options, interest rate volatility, working capital under stress, and leveraging debt vs equity. This series will provide a much-needed objective resource to business leaders with fiduciary responsibilities.
Please join us!
The Funding Strategies Conference: Opportunity Funding, Mergers and Acquisitions and What you Need to Know to Avoid Costly Mistakes
Thursday, October 6, 2022
2 PM – 3 PM EST
Zoom link provided a few days prior to the conference
Opportunity Funding and M&A Can Be Challenging
You’ve found the right acquisition or expansion partner for your company, but obtaining the capital to bring your companies together can be fraught with pitfalls. Your lender may require a board seat in the new organization, there might be issues with unencumbered assets, or the full financial package you need to proceed may not be available to you from your lender of choice.
As credit markets have tightened, the funding landscape has changed, which means understanding the options available to your company is even more mission-critical than ever before. The Funding Strategies Conference brings together leaders from every segment of the financial industry to provide objective guidance and insight so you know what to ask your lending source. An educated borrower is a borrower who understands their objectives and can identify the risks to avoid.
In the Opportunity Funding, Mergers, and Acquisitions: What you Need to Know to Avoid Costly Mistakes webinar, our panel can help you learn how to find the right type of capital for your company. Our panelists will share what you need to know when seeking funding and funding trends for 2023 and beyond.
This is a Free Livestreamed Event
Skip the airport and crowded expo halls, and interact with experts from the comfort of your favorite workspace. Learn about how to fund your company's growth plans and ask questions to gain insight from financial gurus.
The Opportunity Funding, Mergers, and Acquisitions: What You Need to Know to Avoid Costly Mistakes Livestream will be on October 6, 2022, from 2 PM to 3 PM EST. A simple registration will give you full access to the event, plus complimentary viewing access after the event via our sponsor’s websites.
Complimentary Full Access Registration
There is no charge to participate in the Livestream thanks to the generous support of our sponsors; however, registration is required. Space is limited. Registration closes September 30, 2022
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Funding Focus: Factoring
Factoring is an easy and affordable way for your company to obtain funding without the headache of more complicated loans. The power of factoring is directly tied to your company’s outstanding invoices and leveraging them with a lender.
The factoring process is fairly straightforward. Your lender reviews your company’s outstanding invoices and accounts receivables (AR), determines a value, and purchases the debt from your business at a modest discount. The purchase price is paid to your company in the form of cash or as a line of credit for your company to draw from.
The lender is now responsible for collecting and servicing the outstanding debt.
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The factoring process is an often overlooked method of providing working capital to businesses that experience monthly cash flow issues. Most companies utilizing factoring have recurring factoring agreements, meaning every month they can depend upon their lender purchasing outstanding invoices and providing working capital in exchange.
Qualifying for factoring is not as complicated as obtaining a traditional loan. The lender is not as focused on your company’s credit history as much as it is on the estimated value of your AR, the aging of your AR, and the overall quality of your accounts. Where traditional lenders want a comprehensive overview of your company, assets, credit history, and likely personal guarantees, your factoring company is more interested in the health of your serviceable debt.
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Factoring is an outstanding solution for companies in need of working capital on a regular basis, especially if they have credit issues.
For more information about factoring and how it can benefit your company, contact The Funding University at 504-975-8599 or visit www.thefundinguniversity.com.
What Should You Look for in a Commercial Lender?
Here are a few key factors to consider before you decide.
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When you’re a small business owner, you’re constantly making decisions. Products, materials, boosting morale, delegating tasks—it never ends. That being said, one of the most important choices you have to make is how to fund your company. Choosing a lender for your business can be daunting, but it doesn’t need to be. Asking yourself these questions can help you figure out the best funding source for your company.
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Are they well versed in your industry? You want a lender who understands your business and can even offer input if needed for any financial moves you’re considering. Having a proven track record of working with similar clients can benefit your business and give you peace of mind as well. Having a lender seeking borrowers like you is a major bonus.1
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How long does the process take? If your application has to change hands dozens of times, it’ll majorly slow down how quickly you can utilize your funding.1
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Are they accessible? How easy is it to contact your lender and talk to a human, not an automated call tree.1
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Can they provide adequate funding to meet your needs? The amount of credit a company needs will vary greatly depending on the industry, your business plan, and even your credit history. Some businesses may even need access to a revolving line of credit—something else to consider.1
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Do they require any collateral? Some institutions will have a borrower put up collateral as a prerequisite before they’ll disburse funds. It’s prudent to know what kind of collateral they’ll accept, particularly if they require a business owner to borrow against their personal or company assets.1
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Do they provide any additional resources? If you’d like your lender to have an active role in your business, find one that offers services, like business consulting or financial planning. If you’d like them to be more hands-off, look for one who will maintain distance. Some lenders even have customizable options to help those clients who only want occasional assistance. Ask questions to assess how well a lender will meet your needs, whatever they may be.1
Don’t forget to cast your net wide. Seeking out multiple candidates can help you choose the right lender, and do your research to ensure you work with a reputable group. Figure out what your specific needs are and write them down. Use that list to evaluate each contender. The right lender will put together a package to meet your needs and support your company through both the good and the lean times.
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The Funding University is an academic and educational resource to financial leadership and
CPAs. Our mission is to help you stay up to date with the latest funding information so you can
make the best and most appropriate decisions for your company.
References
10 Things To Ask Before...Selecting A Commercial Lender - The Business Journals
About. Seth Block CPA
Seth Block is a founder and board member of ThermoCredit, LLC. Seth has been working with the management and development of service based companies for more than 30 years. In his time with ThermoCredit, Seth has coordinated the funding for hundreds of companies in the Communications and Technology verticals. Prior to starting ThermoCredit,
Seth was a cofounder at Smoke Signal Communications,
one of the largest pre-paid competitive telecommunications carriers in the US. At Smoke Signal, Seth was CFO for two years and Senior Vice-President for 5 years. Seth’s areas of expertise are corporate development, consulting, regulatory affairs, provider relations, start-ups, and delivering funding solutions for hard to finance companies. Seth holds a degree in Accounting from Southwest Texas State University and is a licensed Certified Public Accountant.
Seth is a well known and respected speaker at industry events, sharing insights about funding and funding options. During his career Seth has been involved in hundreds of business funding opportunities, with a total value in excess of one billion dollars. He is also the author of the soon to be published book about business finance.
“I’ve been in the world of finance for a while and I’ve acquired the business acumen to be able to share what I’ve learned. Most companies have financial leadership that understands accounting, but not the nuances of funding. There are significant differences between Banks and Credit Unions when it comes to financing. The SBA has 11 different programs. How do you know which one to utilize or even if you should utilize them? Schools teach about debt and equity, but I created The Funding University to teach companies how to leverage debt and equity in the real world, using easy to understand methods. There’s a big difference between what we learn in school and how the world of finance really works. The Funding University is here to close that gap.”
—Seth Block, Founder and Host of The Funding University
