HCC Secures $350,000 Asset Based Loan For Social Media Advertising Company

HCC Secures $350,000 Asset Based Loan For Social Media Advertising Company

Huntington Beach, CA: A southern California company providing retailers with a way to socially market their products was growing fast. Huntington Coast Capital secured them an asset based loan on the general assets of the business to take them to the next level.

The company essentially captures happy customers in an onsite Kiosk that takes pictures of them and their friends and shares the message and photos on their social media outlets. A modern way to advertise your business! The products as described on the company’s website are copied here:

We turn event photos into marketing stories

We believe that the best way to spread your brand’s story is to capture a personal photo of your customers. Capturing photos and videos of your customers is the most powerful way to create testimonials and word-of-mouth marketing.

 

As we continue to evolve our technology, we have a few guiding principles:

  • All of our technology is designed for marketing, and the best type of marketing happens when the consumer’s photo tells a story.
  • Photos should be delivered as a gift. For example, Photo Access Cards turn a photo into a physical gift that people put into their pocket and use to retrieve the photo later. No need to ask the consumer for information onsite
  • Different situations require different methods of delivery. We support delivering photos by: email, SMS, handing out Photo Access Cards, handing out a glossy print, through social channels, and with an onsite sharing kiosk
  • Event technology has to be drop-dead-simple to use and bullet-proof. All of our technology can be used in a single location or rolled out to hundreds of locations
  • We have created a system that fits the needs of the most demanding large brands, and can be used by small businesses

Could your business use an asset based loan? We secure asset based loans in California and throughout the country! Call us today 714-719-8966.

Asset Based Loans In California In Demand!

Asset Based Loans In California In Demand!

Huntington Beach, CA: Business owners have been increasingly inquiring about asset based loans in California and nationwide. Frustrated with the banks, they come to us for answers. We have successfully secured loans for inventory purchases, equipment lease and purchase programs, purchase order financing, lines of credit, term loans and SBA loans to name a few. Is your bank making it difficult to get a loan to grow your business? Contact us and explore your options 714-719-8966 or at patrick@huntingtoncoastcapital.com. How far can your business go?

Patrick Zazueta - Huntington Coast Capital - Orange County CA 4 - Half DR

Asset Based Loans On The Rise

Asset Based Loans On The Rise

Huntington Beach, CA Asset based loans are the rise in the second half of 2017. We have seen an uptick in asset based loan requests in California and across the country. The main reason for this, we believe, is that bank credit remains difficult to obtain. For example, SBA loans have traditionally been the choice for business owners looking for asset based loans to acquire another business or to expand an existing one. The SBA is a good option and we have many sources participating in the SBA loan program. However, the is a big IF attached to SBA loans and that is, SBA loans are a good option, IF, you can qualify.

The SBA loan process is stringent and not at all subjective. You either fit in to the credit box, or you do not. There is very little accommodation given for those falling just outside the credit parameters. If you are able to qualify, there is a mountain of paperwork attached that some borrowers do not have the stamina for.

We are seeing an increasing number of applicants opt for the document-light, but more expensive term loan options. There are a crop of lenders in the market place offering asset based loans in California and nationwide. They have grown in popularity due to their quick turn around decisions on credit and their requirement for fewer documents throughout the underwriting process. They still underwrite the cash flow and make sound loans, however, the process is not nearly as tedious.

The reason that SBA loans require so many documents is because they are backed by the government and the lender is partially insured against loss. Understanding this, there are very strict controls in place in order for the bank to receive the insurance on the loan. SBA loans, as stated previously, provide a good option for business owners who qualify, if they can. However, borrowers will need to bring their patience because the process requires a fair amount of endurance.

When working with our clients on asset based loans in California or elsewhere, we always suggest we run two applications in tandem. One through the SBA and another through one of our private sources. This allows them to pick the best option for their needs and provides them with the greatest chance at success.

Could your business use and asset based loans to fund growth? If so, we would like to speak with you. Our unbiased consultation bring the lenders and options to you. We are not a direct lender and as such, we are not “selling” our program. We align ourselves on your side of the table and negotiate on your behalf. Asset based loan, equipment loan, purchase order financing or a line of credit – whatever the need is, we can assist.

To your success!

Patrick Zazueta | Founder
Huntington Coast Capital, Inc.
714-719-8966 Direct

$50,000 Asset Based Loan For A Chiropractic Office

$50,000 Asset Based Loan For A Chiropractic Office

Huntington Beach, California – Huntington Coast Capital secured an asset based loan for a chiropractic office. The use of proceeds was to consolidate existing debt and additional funds for marketing and working capital. These smaller sized loan requests are difficult to be approved under due to the return to the funding source. However, we were able to get two separate approvals, one through the SBA and another through a private capital source. The SBA option was naturally more attractive from an interest rate perspective and the borrower elected that option.

The SBA loan will be an asset based loan with a blanket lien on all of the business assets. The loan was approved due to strong debt service coverage and the borrower’s strong credit score. The term asset based loan is a broad term and can be used to describe a number of different loan products. Some asset based loans are specific to accounts receivable, inventory or equipment and others are more of a blanket loan on all assets of a business, as in our most recent example.

If you business could use an asset based loan to take advantage of growth opportunities, call us! 714-719-8966.

To your success!

What Is An Asset Based Loan?

What Is An Asset Based Loan?

Huntington Beach, CA: The term asset based loan is widely used to describe a loan secured against an asset of value as security for the money borrowed. Huntington Coast Capital has been securing asset based loans for our clients in California and across the nation since 2010. Asset based loans consist of loans secured by commercial real estate, inventory, accounts receivable, purchase orders or equipment. Below is a brief summary on how we have assisted our clients in securing asset based loans in California and across the United States in these different categories.

  1. Commercial and investment real estate. Companies that lack sufficient business collateral are often required to pledge outside collateral as an abundance of caution in this type of asset based loan. Often referred to as bridge loans, these loans usually have terms of 6 months to 3 years and are offered through private money capital providers. These asset based loans are offered in California and throughout the country.
  2. Inventory loans. For companies in the manufacturing, distribution, wholesale and retail spaces, inventory represents cash tied up in goods for sale. Inventory can be used as security in an asset based loan. Depending on the type of inventory however, a loan may not be available. For example, if a company is selling fresh fish, meat or poultry, finding an asset based loan will likely not be possible due to the quick turn of this type of product and the potential for spoilage. Other forms of inventory such as t-shirts, tires, dried goods and other products with long shelf lives have a much better chance of being accepted as collateral for an asset based loan.
  3. Accounts receivable and purchase orders. These two assets represent an amount owed and an order for shipment. Both of these asset types qualify for an asset based loan. In fact, these two asset classes are the most popular asset based loan being requested from our clients in California. Companies in search of improved working capital utilize their accounts receivable as collateral for an asset based loan and their purchase orders as collateral when looking to obtain funding to cover their cost of goods to suppliers.
  4. Equipment loans. Asset based loans used to purchase or refinance equipment are for a specific purpose. Retail sector companies such as restaurants are big users of equipment loans as well as companies in the manufacturing sector. Often times in business acquisitions, equipment loans provide a portion of the funds required for the purchase if the equipment is currently owed free and clear and has a usable life of over 10 years.

Asset based loans are vital to the economy and provide funds to companies when more traditional finance programs can not meet the need. If you are a California company in search of an asset based loan or are located anywhere in the continental United States and looking for financing to take advantage of growth opportunities, consider an asset based loan.

Need assistance navigating the capital markets? That is our specialty and we are eager to help. For advise and counsel on asset based loans or any other form of business financing, give us a call 714-719-8966.

To your success!

Patrick Zazueta
Huntington Coast Capital, Inc.

Business Loan For Dickey’s BBQ $40,000

Business Loan For Dickey’s BBQ $40,000

Huntington Beach, CA: A franchise owner for a national chain known as Dickey’s BBQ (the largest BBQ franchise in the country) came to Huntington Coast Capital for a business loan. The loan amount needed to replace and upgrade a Point Of Sale system for the business and consolidate debt was $40,000. At this loan amount, most traditional lenders shy away and opt for financing the larger requests over $150,000.

The franchise owners found it difficult to obtain financing from their local bank. They were introduced to a number of consultants that were not in the capital markets specializing in business loans and wasted a lot of time searching for the elusive capital. Huntington Coast Capital was introduced through one of our affiliate partners and tasked with securing the funding they desperately needed.

After a couple of inquiries, we were able to secure the business loan for their franchise. By utilizing this debt, they are now able to upgrade their systems and restructure their debt at more favorable terms.

Could your company use a business loan? Huntington Coast Capital secures business loans in our home town of Huntington Beach and nationwide. We look forward to serving your business loan needs.

To your success!

Patrick Zazueta
Huntington Coast Capital, Inc.
Direct 714-719-8966

Why Do Most Business Owners Struggle To Get Bank Financing?

Why Do Most Business Owners Struggle To Get Bank Financing?

Disappointed Business Owner

Huntington Beach, CA: According to Bloomberg, 80 percent of small businesses fail within the first 18 months. Some fail because their products do not fit current market needs, others because they do not adequately differentiate themselves from established competitors, and others because they do not effectively communicate value propositions to consumers. Of course, startups would in many cases be able to fix those problems, if only they had time.

The Increasing Difficulty of Securing Funding

Although business owners have access to a wider variety of financing options than ever before, finding capital is becoming increasingly difficult. Referencing a survey of small business owners–The Small Business American Dream Gap Report–Levi King (CEO of Nav), writes in Entrepreneur:

“Within the previous year, the survey revealed, 20 percent of the small businesses surveyed said they had considered shutting down, primarily because of lack of growth or cash-flow issues.”

Why Businesses Have Difficulty Obtaining Bank Loans

Banks fail to approve small business loans for a variety of reasons, including the following:

  • Poor credit history: the personal credit threshold for many business loan products is around 660; banks typically have a higher score threshold of around 720. Traditional banks and some privately-owned finance companies have a preliminary scoring system based on running a credit check on the individual’s credit first. This is the first hurdle in getting approved for a loan. Poor personal credit most often stops the review process before any real underwriting has taken place on the business.
  • Time in business: the magic number for time in business is 2 years. Why is this? Because most businesses fail within this time period. Not only is time in business important, but also profitability. It is not good enough to simply be in business for two years. Banks look to see at least two consecutive years of profitability on the business tax returns. Business tax returns are the most conservative numbers for the business (because of the natural tendency to keep profits down to avoid paying taxes), and thus, are the numbers used when applying for a bank loan.
  • Historical Debt Coverage: banks frequently fail to approve loans because business owners do not have the necessary debt service coverage for the loan when they apply. Banks look back in time when determining whether or not the business can afford the debt. This in contrast to looking at projections and possible increase in profitability as a result of using the funds provided from the loan to grow the business.

Are There Any Financing Options Other Than Banks?

Fortunately, there are forward-leaning companies that help businesses secure financing. These groups are private funding companies providing asset based loans and working capital products with fewer restrictions and qualification hurdles to jump through. These companies are the cavalry to the rescue for many business owners. Without the second tier, private money programs in the marketplace, many more business owners would have to close up shop. Connecting business owners with this second tier market is what Huntington Coast Capital was formed to do. We are on the side of business owners and help them navigate the secondary markets when the banks say, NO!

Conclusion

Companies like Huntington Coast Capital succeed for 3 principal reasons:

  • We are unbiased in providing business loan options and comparisons;
  • We serve a broad range of industries; and
  • We specialize in securing loans for businesses that have been turned down by the bank.

If you’ve been turned down for a bank loan and want to learn more about our innovative financing options, contact us today.

Sources:

Entrepreneur: Five Reasons 8 Out Of 10 Businesses Fail

Entrepreneur: The Real Reason Banks Deny Loans to Many Small-Business Owners

Nav: Nav’s Small Business American Dream Gap Report Reveals Surprising Reason Many Loan Applicants Get Denied

Business News Daily: 6 Factors That Keep You from Getting a Small Business Loan

Huntington Coast Capital: Why Us?

Huntington Coast Capital Secures $500,000 Term Loan For Contractor

Huntington Coast Capital Secures $500,000 Term Loan For Contractor

Huntington Beach, CA: We successfully secured a $500,000 term loan for a general contractor in New Orleans, LA. The company specializes in a broad range of construction projects including both ground up development and renovation work. Some of their projects include residential lot development, hospital and university rehabilitation projects, and local municipality work.

The company currently has a line of credit factoring loan through their local bank, but this was not enough to meet the cash needs of the upcoming projects they were awarded. The subject contracts were coming in the summer and were for some local schools that were looking to beautify their campuses. The projects have to start as soon as school let out for the summer and be concluded by the time the kids returned after the break. They needed additional capital and quickly if they were to meet the deadline and be awarded the contract. Their existing factoring loan improved their existing working capital, however, they were in need of a term loan to cover the upfront costs of the contract if they were to be able to mobilize on the projects.

The company started early in their search for the additional capital. They started by inquiring with their existing bank who was unable to provide additional funds above and beyond their factoring loan formula. They initially thought that they would have to refinance their entire factoring loan in order to acquire a more lenient business loan package to meet their needs. Huntington Coast Capital advised that they should keep their existing bank financing as that is the lowest cost option. Instead, the strategy was to add to their existing factoring loan by bringing in another lender to supplement their capital needs. This secondary term loan financing was more expensive than the bank factoring loan, however the opportunity cost of not being able to fulfill the new contracts would have been much more costly.

Perhaps the biggest benefit to the client is that not only are they able to fulfill these contracts, they now have a funding partner they can turn to for the next set of awarded contracts. Establishing a reliable capital source for your business is invaluable. Huntington Coast Capital specializes in bringing capital to business and adding value to our clients future growth.

How can we assist your business? If additional capital would help your business grow, we would like to speak with you.

To your success!
Patrick

Huntington Coast Capital Secures $1,000,000 Equipment Loan For A Distributor Of Water Station Vending Machines

Huntington Coast Capital Secures $1,000,000 Equipment Loan For A Distributor Of Water Station Vending Machines

Huntington Beach, CA: A company specializing in alkaline water vending machines was searching for an equipment loan to build the inventory required to meet new customer contracts.

Their water stations are designed for commercial and residential use. Their flagship commercial product is the WST-700 is a state-of-the-art water dispensing system that purifies drinking water to a very high standard and percolates it through layers of natural minerals to produce a soft, silky water in one, three and five gallon increments.

On the consumer side, the WST-100 is the first compact reverse osmosis water purifer with a built-in alkaline mineral cartridge. It percolates water through five beds of minerals to produce alkaline water in a very natural way.

Demand for their products has been increasing steadily over the past few months on both the consumer and commercial side. Huntington Coast Capital secured them an arrangement with a consumer lease company to manage the credit review, approval and management of the products sold directly to household users and an equipment loan purchase line to manage and fund their commercial business. Without the equipment loan products delivered by Huntington Coast Capital, they would have to turn away a lot of business and stall the company’s growth.

If traditional banks have declined your company’s equipment loan request, call us. Most business loans are approved through the private sector. If your search for financing has ended in a dead end, give us a call.

To your success!

Patrick

How Will A Rise In Interest Rates Effect Business Owners?

How Will A Rise In Interest Rates Effect Business Owners?

Things That Traditionally Increase When the Fed Increases Interest Rates

 

The recent rise in the Fed funds rate will likely cause a ripple effect on the borrowing costs for consumers and businesses that want to access credit based on the U.S. dollar. That has an impact across numerous credit categories, including the following:

  • The Prime Rate: A hike in the Feds rate immediately fueled a jump in the prime rate, which represents the credit rate that banks extend to their most credit-worthy customers. This rate is the one on which other forms of consumer credit are based, as a higher prime rate means that banks will increase fixed, and variable-rate borrowing costs when assessing risk on less credit-worthy companies and consumers.
  • Credit Card Rates: Working off the prime rate, banks will determine how credit-worthy other individuals are based on their risk profile. Rates will be affected for credit cards and other loans as both require extensive risk-profiling of consumers seeking credit to make purchases. Short-term borrowing will have higher rates than those considered long-term.
  • Savings: Money market and credit-deposit (CD) rates increase due to the tick up of the prime rate. In theory, that should boost savings among consumers and businesses as they can generate a higher return on their savings. However, it is possible that anyone with a debt burden would seek to pay off their financial obligations to offset higher variable rates tied to credit cards, home loans, or other debt instruments.
  • U.S. National Debt: A hike in interest rates boosts the borrowing costs for the U.S. government and fuel an increase in the national debt. A report from 2015 by the Congressional Budget Office and Dean Baker, a director at the Center for Economic and Policy Research in Washington, estimates that the U.S. government may end up paying $2.9 trillion more over the next decade due to increases in the interest rate, than it would have if the rates had stayed near zero.

Things That Are Largely Unaffected When the Fed Increases Benchmark Interest Rates

  • Auto Loan Rates: Auto companies have benefited immensely from the Fed’s zero-interest-rate policy, but rising benchmark rates will have an incremental impact. Surprisingly, auto loans have not shifted much since the Federal Reserve’s announcement because they are long-term loans.
  • Mortgage Rates: A sign of a rate hike can send home borrowers rushing to close on a deal for a fixed loan rate on a new home. However, mortgage rates traditionally fluctuate more in tandem with the yield of domestic 10-year Treasury notes, which are largely affected by inflation rates.

Things That Traditionally Decrease When the Fed Increases Interest Rates

  • Business Profits: When interest rates rise, that’s typically good news for the profitability of the banking sector, as noted by investment giant Goldman Sachs. But for the rest of the global business sector, a rate hike carves into profitability. That’s because the cost of capital required to expand goes higher. That could be terrible news for a market that is currently in an earnings recession.
  • Home Sales: Higher interest rates and higher inflation typically cool demand in the housing sector. On a 30-year loan at 4.0%, home buyers can currently anticipate at least 60% in interest payments over the duration of their investment. Any uptick is surely a deterrent to acquiring the long-term investment former President George Bush once described as central to “The American Dream.”
  • Consumer Spending: A rise in borrowing costs traditionally weighs on consumer spending. Both higher credit card rates and higher savings rates due to better bank rates provide fuel a downturn in consumer impulse purchasing. (For more, read How Interest Rates Affect Spending.)