HCC Obtains $1,500,000 Credit Line For Wireless Company

HCC Obtains $1,500,000 Credit Line For Wireless Company

Huntington Coast Capital negotiated and procured a $1,500,000 credit line for a wireless service provider in Irvine, CA. The company was outgrowing their bank’s ability to fund their projects. The nature of their product required contracts for service over an extended period of time, and often were in the multi-million dollar range. The contracts required capital prior to delivery to cover cost of goods and other fixed expenses. This made a traditional accounts receivable line of credit challenging because most lenders lend on accounts receivable after services have been delivered.

They spoke to a number of community banks and finance companies and none seemed to deliver the amount of capital (at the right price) for their needs. Enter Huntington Coast Capital. After our initial consultation, we introduced a couple of avenues and potential lending sources for them to choose from. We introduced a factoring company and a couple of creative asset based lenders for them to consider. After the proposals were received, HCC highlighted the differences in the funding options and ran the cost through our pricing model matrix to offer a side by side comparison.

The company made their choice and are now able to meet the demand of their pending contracts and grow the company significantly.

Contact us to discover how we can deliver the capital you need to take your business to the next level!

Huntington Coast Capital – Fueling the Economy, One Business At A Time!

HCC Secures $840,000 SBA Loan For A Sauna Manufacturer

HCC Secures $840,000 SBA Loan For A Sauna Manufacturer

Huntington Coast Capital is proud to announce the closing of a $840,000 SBA loan for a sauna manufacturer in San Francisco! The company was looking to re-structure some debt and utilize some outside capital for expansion.

The company was referred to us by one of our lending partners who could not offer them a term loan. Because they sold their product directly to consumers and not through retail distribution, they did not have accounts receivable. Non-SBA lenders need to have accounts receivable and/or inventory to provide working capital lines of credit. The SBA lenders look at things a bit differently; they look at the cash flow and debt service ability of the company. The company had strong cash flow and was trending in a growth direction.

A main reason for the growth of the company is due to their motto in placing customer health first.

An explanation from their company website:

For years, the healthcare industry recommended infrared heat lamps as a source of far infrared heat but the lamps were cumbersome, extremely hot and difficult to maintain at a constant temperature. Today, many healthcare professionals use far infrared infrared heaters to treat a variety of diseases throughout the world.

The efficacy of far infrared waves is very broad and the subject of recent study by NASA. Among the infrared waves, the far infrared rays, which have a wavelength of 8-14 microns, are especially good for the human body. These waves have the potential to penetrate 1.5 to 2 inches or more into the body allowing for deep heat and raising your core body temperature from deep inside. The deep heat and far infrared is why scholars believe that the Ondol (traditional warm floor of Korea) is good for health because the materials for the Ondol are stone and earth both of which radiate far infrared waves when heated.

The far infrared rays consist of similar wavelengths as that which is emitted naturally by the human body. This is one potential explanation of why many feel energetically rejuvenated and balanced from contact with far infrared waves. It is also believed that far infrared waves help improve blood circulation and recovery from fatigue.

I feel rejuvenated just reading this!

If your company could use additional capital to expand operations, give us a call!

To your success,
Patrick Zazueta | Founder
Huntington Coast Capital, Inc.

HCC Secures $2,300,000 for a Glass Fabricator in California

HCC Secures $2,300,000 for a Glass Fabricator in California

Huntington Coast Capital secured a $2,300,000 line of credit for working capital and equipment needs for a rapidly growing glass fabricator in California.

The company, established in 2009, offers full service glass fabrication out of their 80,000 square foot, state of the art facility. Their product offering includes architectural and creative glass fabrication services for office, industrial, retail and residential uses.

They were referred to us by a local bank that required a lock box arrangement which the borrower was not able to oblige. After our initial consultation, we directed them to a select group of three lenders to discuss their financing needs and preferences. In the end, they selected a lender that was able to provide the equipment loan (with lower fees than the SBA product) and working capital needs without the use of a lock box. The borrower now deposits his collected checks from customers into his bank account that the lender sweeps to repay the loan balance.

The entire process from introductions to funding took under 35 days! Now the company can meet demand and grow with their lender. Another example of how Huntington Coast Capital takes the headache out of finding the best lender for your business.

If you business could use additional capital to meet you company goals, give a call.

To your success!

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

What Is Your Rate?

What Is Your Rate?

What is Your Rate?

This is the main question when dealing with a commodity type funding product. For example, when I am looking to refinance my mortgage, I am looking for the lowest rate, period. It is assumed that the mortgage company/bank providing the loan will adequately service my mortgage.

However, when we are discussing business financing, we are looking more toward a funding partner with an entrepreneurial mindset that understands our business and the growth potential. With the exception of the SBA Loan products, business lending is more subjective than objective. At Huntington Coast Capital, we align ourselves on your side of the table and represent a number of private and institutional capital providers.

If your business can qualify for a bank line of credit, that is a great resource, however, if you’re like the majority of business owners out there, you don’t quite fit perfectly in all the boxes to be approved.

Our most common request is for working capital, either in the form of purchase order financing or factoring. Many times, the business owner(s) have quality accounts receivable, but little equity and cash in the business. This quickly disqualifies them from traditional financing solutions. Our clients need someone who can understand their business and rely more on the quality of the collateral than on the financial strength of the business.

By investing in businesses with credit profiles underneath standard bank qualifications, our funding partners are fueling the leading companies of tomorrow. Giving them the resources to grow and expand and take advantage of opportunities they otherwise would miss.

Rate is seldom the main focus of the conversation. While rate is always a consideration, the question of capital availability (is the money available to me in my current financial state?) takes center stage. Here is where Huntington Coast Capital brings real value. We all know where to go to speak to a banker, but few business owners know where to go to reach the secondary market.

By utilizing the services of Huntington Coast Capital, you are hiring experienced capital markets advisors. If your business could benefit from additional capital, we would like to speak with you.

To Your Success!

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

Ryan, President, Metal Importer and Distributor, California

Ryan, President, Metal Importer and Distributor, California

Huntington Coast Capital secured a $3,000,000 line of credit for our business. The line was more flexible than what other lenders were offering and allowed us to reach the goals we set for the company. I would highly recommend using Huntington Coast Capital!

Art Lopez, President, Temporary Staffing Company, Los Angeles, CA

Art Lopez, President, Temporary Staffing Company, Los Angeles, CA

Our company was in search of a reliable, flexible and cost effective funding source to level out our cash flow needs. We spoke to a number of lenders, all of which were either high cost or had burdensome covenants in their funding programs. Huntington Coast Capital, came in, took the reigns and guided us to the perfect solution. Their expertise saved us time and money in securing our $2,250,000 credit line. Thanks Huntington Coast Capital!

Huntington Coast Capital to Release New Website

Huntington Coast Capital to Release New Website

Huntington Coast Capital is going to soon make securing the capital you need for your business growth even easier! Our new website will encompass more of the services we are offering above and beyond factoring services.

Our initial focus was as consultants in the factoring industry. Since that time, we have assisted a multitude of business owners in obtaining factoring loans for their business. However, we are doing much more in the areas of private equity, lines of credit, purchase order financing, SBA lending, inventory financing and equipment financing. Our new site will be updated to a more user-friendly and engaging format.

We are eager to share this new release with you! An invitation to view our new site will be going out upon completion and we welcome your feedback!

To your success!
Patrick Zazueta | Founder
Huntington Coast Capital, Inc.
714-719-8966

Dennis F. Palumbo, CPA, PA

Dennis F. Palumbo, CPA, PA

Our business was growing fast and we needed a funding solution that could grow with it. As a service company working directly with consumers, we did not fit the mold of most working capital financing solutions offered by the masses. We needed something flexible, low in cost and hassle free. Huntington Coast Capital was able to secure our $150,000 loan with less energy and time spent, which allowed us to focus on our day to day operations. If your company needs additional capital for expansion, talk to Huntington Coast Capital.

“I Wish I Knew Then What I Know Now!”

“I Wish I Knew Then What I Know Now!”

Blog articles discussing factoring companies, factoring loans, invoice factoring,small business finance and all things related.

As we get older and reflect on our past experiences the old saying, “I wish I knew then what I know now” has more and more relevance. We have all had those times when we wished we hadn’t said something moments after we said it, or emailed something that should have never been in writing, or maybe it was something we didn’t do that we wished we had. These experiences happen for all of us in our personal and professional lives over time. Like aging itself, these moments are impossible to avoid.

As we go through our professional career we learn certain things though trial and error. We have all worked with managers we loved and those we didn’t. Through our experiences we learned in which environments we thrived and in which we didn’t. Some of us were managers who learned how to work with others over time. In the beginning, we made a lot of mistakes and made adjustments to our approach in order to become better at our managerial responsibilities. We studied and learned from the great managers in business and we listened to our employees and used their constructive feedback to become a better motivator, teacher, team player or whatever it was we needed improvement on. It’s an on going work in progress that is really more of a journey than a destination.

Mentorship programs are popular in graduate school. Having a mentor cuts through a lot of the self exploration and provides some solid advice on how to succeed as a leader. If it’s been done before, we can study and learn from it. This saves a lot of time when aspiring to learn something new. We all have our own point of view, our own style, but we pull from others what we like and see relevant to our situation. Learning from others that have been where you are and have succeeded at it, is a powerful source of knowledge and gives us a huge advantage when taking on a new task.

However, before mentorship programs we had the guidance of our parents. Our parents gave us advice on how to handle situations that came up in school or on the playground. We learned how to deal with others and “share” even when it was not something we necessarily wanted to do. As we know, our parents were once young and they experienced the things we were experiencing for the first time. They provided guidance on life matters from their experience. They were our first teachers when it came to everything from potty training to relationship advice (when we became old enough to be interested in such things). Without the guidance of our parents, learning would have taken a lot longer, and some things we simply wouldn’t even try without them there to help us (i.e. swimming or riding a bike).

So what does this have to do with being a business owner? Well, as entrepreneurs we start a business typically because we have the connections and experience in a certain area. We rationalize that we have enough raw talent and drive to be successful. We say to ourselves that “I know enough to run my business and that which I don’t know, I can learn.” With enthusiasm and passion we start our business with big aspirations and goals.

Not to be negative, but as we know, most small businesses fail. For example, just because you’re a great cook, doesn’t mean you can manage people and run a successful restaurant. There are many things we learn when we voyage out on our own, some of which we hadn’t thought about when we first started out. Business owners soon realize that in order to sell their product, they must also have knowledge in accounting, human relations and banking to name a few. These are areas that are necessary, but not necessarily areas we have experience in when first starting our own business.

So what inspired this blog post? Again, our clients. A growing number of our clients are coming to us because the bank is kicking them out. They say, “I wish I knew then what I know now!” referring to some bank covenant that they triggered that resulted in the bank freezing their credit line. They are being asked out of the bank and pressured to find a “more suitable” lender.

Huntington Coast Capital has received the compliment of being told that we are “invisible, but invaluable.” You won’t see our name in any annual reports, or mentioned in any trade publications highlighting super fast growth companies. However, our services are a catalyst in getting your business to it’s true potential. Securing a flexible lender that understands your business and has the entrepreneurial mindset required to understand your vision is invaluable.

Do you want to save time and frustration in finding the right lender for your business? Would it be worth something if you knew where the flexible funding partners were that could bring real value to your business? We want to help.

Huntington Coast Capital bridges the gap and guides you into the lap of entrepreneurial lenders that are looking to fund your business without the limiting covenants and regulations of traditional lenders. Call us to discuss your funding needs. Don’t be one of those failed business owners that tell themselves, “I wish I knew then what I know now.”

To your success!

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

Recent Example Of An Approval On A Tough Funding Request

Recent Example Of An Approval On A Tough Funding Request

Blog articles discussing factoring companies, factoring loans, invoice factoring and all things related.

Many companies out there provide purchase order financing and each have their desired “sweet spot” when considering funding requests. While most companies will entertain your purchase order if you are receiving traditional order requests from tradition customers, few will grant credit on anything deviating front the norm. When I say traditional orders I mean orders taken from retail or wholesale customers. Traditional customers meaning customers with credit that is easily verifiable with a strong payment and financial history.

So what if your request isn’t “the norm?” We recently had such a request and found them the funding they needed.

Here’s the scenario: our client operated as a sandwich distributor supplying customers with home style sandwiches for schools and other municipalities. His business was growing and he needed purchase order financing to fill the orders. Easy enough right? Wrong. Because his products are perishable items, only one purchase order finance company would consider the request. You see, our client personally would go out, take an inventory of the sandwich supply and write down how much inventory had to be replaced. He would then take that purchase order that he created and submit it to his supplier to fulfill.

There are two issues for most lenders here: 1) perishable items, 2) the client creates his own purchase orders. Why are these an issue? Well, for a couple reasons. Firstly, most lenders are wary of lending to companies dealing with fresh perishable items largely due to spoilage. The spoilage risk could reduce the amount owed and thus create a risk to the lender’s exposure. Secondly, the client is creating his own purchase orders and receiving financing based on those orders. The lender is exposed here as the client could theoretically fabricate the amount of the purchase orders upward to assist the company’s cash flow. The lender would then advance on the amount of the purchase order and unbeknownst to them, be in an involuntary over advance.

So needless to say, most purchase order funding companies we deal with were not open to working with our client. Except one. You see, with a few more questions asked, we were able to get one of our lender’s comfortable. Regarding the sandwich spoilage, this is running at about 3% which is a nominal amount and well below the standard reserve taken in the formula advance. On the purchase order issue, our client receives a verification from the supplier on each purchase order and the sandwiches are closely monitored in a tracking system. Any excess sandwiches would not fit the amount being shown as used in the customer’s coolers. Additionally, our client’s warehouse is continually monitored by the USDA for quality and cleanliness reviews.

All this considered, the purchase order financing company was comfortable and granted the funding needed. Above and beyond the sandwiches, our client also distributes supplement drinks. This product line is a larger percent of the business and will be included in the collateral pool for the line of credit. All in the client needed $250,000 in immediate purchase order financing and has a backlog which should increase this substantially starting next month.

If your business could benefit from a lender that listens, we would like to speak to you.

To your success!

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