HCC Funds $1,300,000 In Business Loans In The Month Of December

HCC Funds $1,300,000 In Business Loans In The Month Of December

Huntington Beach, CA.  During the month of December Huntington Coast Capital secured a $650,000 equipment loan and two SBA loans for $500,000 and $150,000 for a total of $1,300,000 in business loans! The scenarios are outlined below:

  1. $650,000 equipment loan for a southern California contractor – The company was paying a high rate of interest on the equipment they used in their day to day operations – The high cost of financing was impacting their cash flow. They engaged Huntington Coast Capital for their equipment loan needs and we were able to reduce their financing costs by almost half, saving them thousands in monthly finance expense.
  2. $500,000 SBA loan for a growing company in the stencil business – The company produces custom stencils for any design and application. The company had an existing SBA loan and were looking to borrow an additional $350,000 to purchase additional equipment to meet growth demands. Huntington Coast Capital secured a $500,000 SBA loan to cover the equipment costs and refinance the existing SBA loan.
  3. $150,000 SBA Express Loan for a custom glass manufacturer – An established custom glass manufacturer was looking for additional funds for advertising and marketing to break in to new markets and broaden their customer base. They have a profitable business serving general contractors and are looking to expand in to direct commercial work.

Whether your business loan needs are for equipment purchases, inventory or general working capital demands, we can assist. We serve companies of all sizes from startup to established.

Business Loans And Knowing The Right Mechanic

Business Loans And Knowing The Right Mechanic

Huntington Beach, CA: My trip to the mechanic made me think about why it is important to have a business loan broker in your corner.

My car recently started misfiring and I took it to the local, large regional mechanic shop (name held anonymous out of professional courtesy) to have them take a look at it. This particular mechanic occupies a lot of space in a high rent district, offers coffee and cookies in the waiting area and an overall professional and sterile atmosphere. The mechanic bays where the specialists operate and solve problems for sick cars looks like it was created by Boeing itself.

After the expert diagnosis was delivered (my car needed new spark plugs and two ignition coils replaced) they provided the cost estimate. I thought to myself, “this is going to be steep” and I wasn’t disappointed. Total cost $682.17. Seeing that I need my car and can’t go more than a few hours without it, I reluctantly agreed. Their courtesy shuttle drove me home and would later pick me up.

When I returned to the shop, the mechanic came out and said, “your car is all done, but you really should replace the other ignition coils and your timing belt is showing cracks and can break at any second.” He went on to say, “the timing belt is a big expense costing roughly $1,200 and then of course the cost of the other coils would bring use to around $1,800 with labor.” I said I would bring it back as I needed to pick up my kids from school.

As I was driving to my kids’ school, my head still in a fog having gone through the surreal experience of knowing that you are not getting the whole story, but not having the knowledge to know for sure, I remembered my trusted Volvo mechanic. I went to this fancy mechanic because they can service the car the same day and I was in a urgent need to have my car back. Now that I had the time, I called my Volvo specialist and booked an appointment.

He replaced the timing belt and also took care of some other minor repairs that weren’t urgent but nice to have done (one of running lights was out, there was a slow leak in my right front tire, and an issue with the passenger side door handle). The short story was that all these repairs had a total cost of $365.00! This was the timing belt that was going to cost me $1,200 according to the fancy mechanic. By the way, the other engine coils didn’t need to be replaced and if they happen to misfire, you can take the car in at your leisure within 100-200 miles of running the car like that. Quite a different story than the high priced mechanic gave me.

Where am I going with this? I saved a few bucks and that is a great win for me personally, but what does it have to do with securing capital and business loans? A lot actually. You see, the high priced guys would never tell me about their competitor working out of a little industrial box charging 1/3 the cost. They would never tell me that replacing the other ignition coils wasn’t necessary (on the contrary, they urged me to). I saved a lot of money by remembering who else was out there, offering similar service and quality work for less.

Business owners in the market for equipment loans, purchase order financing, SBA loans or any other type of loan often enter the process blind. This exposes them to being taken advantage of and subject to convincing, yet biased, opinions of how to handle their funding needs. Direct lenders are experts at explaining the benefits of their financing, but would never tell you where to go to get a competitive quote.

As unbiased business loan consultants, we provide our clients with the confidence to explore their funding needs knowing that we, with our industry experience, knowledge and contacts, are working on their behalf. Do you know if you are about to pay three times more than you should? Is the loan structure being offered by your lender truly the best for your business?

Save yourself the time, energy and frustration of exploring your business loan options and leave it to us. We work with business owners and funding sources on a daily basis and have our fingers on the pulse of the debt markets. Give us a call and let us discuss your capital needs 714-719-8966

To your success,

Patrick Zazueta | Founder
Huntington Coast Capital, Inc.

Equipment financing, inventory financing, and working capital loans are easy to find right? Not if you’re in one of these two scenarios…

Equipment financing, inventory financing, and working capital loans are easy to find right? Not if you’re in one of these two scenarios…

Huntington Beach, CA: Business owners looking to obtain a business loan for equipment financing, inventory financing or working capital have many options to choose from. Capital is plentiful for companies on the rise and in need of financing to meet their growth potential. In fact, most of our clients come to us with equipment financing, purchase order financing, inventory financing, and working capital loan needs. Huntington Coast Capital has a extremely high success ratio in placing these loan requests.

However, there are a couple of situations where this may not be so easy. On a rare occasion we will get a funding request for a company in the medicinal marijuana industry. While the selling of marijuana is legal in some states, there is still a stigma attached to it, even if it is legitimately prescribed by a doctor. As you can imagine, obtaining funding for the growers and distributors in this industry, even if completely legitimate, is very difficult to secure. Some lenders simply do not lend in this industry and lump it together with other unsavory industries like gambling and adult content distribution. Is this fair? I have no idea. This article isn’t about providing an opinion on what the lender’s moral compass should be when analyzing loan requests in this industry. I can say, however, that finding a lender to fund your expansion in this business is very difficult. In fact, even with our extensive contacts in the industry, we only know of one. That’s right one. However, we were happy to have this contact when we received a call from a company in Colorado inquiring about an equipment loan along with funding for tenant improvements for his budding (no pun intended) business. The fact is that his cash flow and profit margins are extremely strong and his business could grow substantially with the right capital partner. Looks like we found them a solution after months of searching on their own in vain. A satisfying moment for us indeed. Now his Cannabis business is set to catapult to the next level!

The second difficult spot to be in is when you are looking for accounts receivable financing for consumer accounts receivable. The market is flooded with options for financing accounts receivable when you are selling business to business, but business to consumer is a ghost town. Most all lenders have the perspective that financing against these debt pools is risky and the credit process for business credit and personal credit is much more subjective and difficult to manage. I have to say, that I agree. To manage risk in this area requires having a specialty and sole dedication to the industry. Like other types of lending, you need to manage losses through diversifying the risk over several separate exposures and minimize credit to any one debt holder. However, this said, it is possible, just not popular among the lending community. As before, we have only one lender in this industry! We don’t come across these requests too often, but when we do, it is satisfying to say, “we may have a solution.”

Do you have a difficult loan request? Has everyone told you “no” because you fit one of the scenarios above? If so, we would like to speak with you!

Be on the lookout for our next blog article that features auto mechanics and why that experience also requires a knowledge of the options! I think we can all agree that we are paying too much for our cars to be serviced in most cases and it pays to know who else can do it for less!

Contact us 714-719-8966

Huntington Coast Capital Obtains $250,000 Factoring Facility For Growing Apparel Company

Huntington Coast Capital Obtains $250,000 Factoring Facility For Growing Apparel Company

An upcoming menswear line was growing and needed outside funding in order to meet demand. They locally source all of their fabrics from a number of fabric suppliers and manufacture the goods all in Los Angeles. Their supplier’s cash up front requirements put a strain on their cash flow and they needed to do something fast in order to capitalize on the opportunity. Huntington Coast Capital was able to piece together a factoring facility within two weeks time to meet their cash needs and manufacturing deadlines. The company is now well set to grow the company and take their operations to the next level.

About the company:

LAUNCHED – 2012, a new menswear project based in Los Angeles, California

INSPIRATION – Traditional menswear, vintage classics, military uniforms and athletic sportswear.

PROCESS – Juxtaposing vintage garments with new fabrics and materials to create modern silhouettes.

COLLABORATION – With local artisans and craftsmen to complete the garment making process. Each item is often pieced together and finished by hand.

RESPECT – The distinguishing characteristics, quality and durability that only clothing and fabrics from another era can offer.

TRIBUTE – Each new collection is a tribute to the journey these garments have traveled. It is re-purposed and made modern with the intention of giving them new life for a new era. And the journey begins again.

If your company could benefit from a creative capital solution, call us 714-719-8966.

Business Loans and Satisfied Clients

Business Loans and Satisfied Clients

Huntington Coast Capital has specialized in securing business loans, equipment loans, inventory loans, SBA loans and purchase order financing in California for business owners since 2011. We are good at what we do, but do not take our word for it, listen to our clients! We secured a $6,500,000 line of credit for Penguin Foods that reduced their cost of funds and allowed them to grow their business well in to the future. Click the image for the video testimonial:

HCC-client-video-image

$400,000 Equipment Loan Secured For Tenant Improvements

$400,000 Equipment Loan Secured For Tenant Improvements

Huntington Coast Capital headquartered in Huntington Beach, CA announced today that it secured a $400,000 equipment loan to complete tenant improvements at an existing client’s business location. The loan was secured under an equipment loan structure through one of HCC’s established capital partners.

“Huntington Coast Capital was able to secure a loan that no other lenders were interested in” the company president said in a post closing interview. This particular equipment loan, while classified that, was more of a bridge loan secured by in-wall plumbing and fixtures for a cold storage tenant improvement build out.

From a collateral perspective it was very different than your typical equipment loan. In most equipment loan scenarios, the collateral is either rolling (trucks and trailers, etc) or bolted in to the ground (as in a manufacturing or other equipment intensive business). Adding to the creativity in this loan closing was the fact that all of the company’s other assets were tied up under a blanket lien by the senior lender. Lastly, the landlord waiver took a bit of negotiation as the “collateral” for the loan was largely in-wall or built in to the wall making the landlord waiver to enter the property and reclaim any collateral in the event of default, much more difficult.

In the end, Huntington Coast Capital had a happy client and another successful equipment loan closing. If your business could use some additional capital to grow, please call us 714-719-8966.

HCC Obtains $800,000 Equipment Loan

HCC Obtains $800,000 Equipment Loan

RECENT FEATURED TRANSACTION:
A Texas-based company contacted our Huntington Beach location regarding an equipment loan. The company was a supplier and installer of large water tanks for commercial and industrial use. The main applications of their product was for rain water harvesting, well water storage, fire water storage and municipal water storage. Their customers ranged from breweries to large farm co-ops to City Municipalities. Their business is growing and their brand is becoming well-known.

The challenge: The company was running in to a ceiling when it came to their growth potential. The supplier they worked with was located in Australia and had minimum shipment requirements and needed cash up front for the orders. The typical sales cycle (from ordering from supplier to delivering and being paid by the customer) could run as long as 4-6 months. This, coupled with net losses from operations as the company went through growing pains, made them unfit for bank financing.

After applying for and being turned down for an SBA loan, Huntington Coast Capital brought in some forward looking, entrepreneurial lending options. The lender ultimately chosen by our client provided for the cash to purchase the inventory by leveraging existing equipment and freeing up cash trapped in the assets of the company.

The result: A cash injection was possible by leveraging the company current equipment and inventory assets which resulted in being able to fulfill the increasing customer orders. Our non-institutional solution will bridge the company for 12 to 18 months and allow the company to make that jump to profitability. They will likely be ready for traditional financing within a two year time period.

If your business could use a cash injection to take your operations to the next level, we would like to speak with you. Click the Apply Button below to inquire about the details.