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.

SBA Loans The Advantages and Disadvantages

SBA Loans The Advantages and Disadvantages

The SBA or Small Business Administration is a government sponsored funding program for business operations, commercial real estate and construction projects. Whether you are looking for an SBA loan right here in our hometown of Huntington Beach or anywhere in the USA, an SBA loan may be of value to you.

What is an SBA Loan?

SBA loans are generally described as funds available for working capital or equipment purchases that will contribute to the growth of a company’s operations. Working capital is a broad term covering everything from marketing and advertising to hiring and other capital investments.

The SBA does not lend money directly to business owners. Participating banks originate, underwrite and lend money under the program to qualified applicants. SBA loans made by banks are partially guaranteed by the US government.

Who Qualifies for an SBA Loan?

A business that would qualify for an SBA loan would have the following general characteristics:

a minimum of two years in business
at least two tax returns showing a business profit (more on this later)
adequate financial strength of the business relative to the loan amount being requested
personal credit scores above 690 for each owner in the business
outside collateral in the form of equity in a personal residence (sometimes required)

This is by no means an all inclusive list, but some of the main pre-requisites in qualifying for an SBA loan.

Is an SBA Loan Right for My Business?

SBA Loans are a great source of low cost capital for many businesses. If you can check all the boxes required for an SBA Loan, it is a great way to responsibly leverage your company for growth.

Whether or not an SBA Loan is right for your business has many variables. For example, a popular SBA Loan is the SBA 7(a) Loan. This SBA Loan variety is more commonly offered by banks for companies looking for term debt (lump some of cash – think mortgage) versus revolving credit. While the SBA offers revolving lines of credit under the SBA 7(a) Program, our experience is that banks do not offer the revolving loan as widely as the term debt.

If you are looking for a revolving line of credit for your business, there are more flexible and user-friendly loans available.

What Else Should I Know When applying for an SBA Loan?

Here is where the tax return profits come to play. It is natural for business owners to want to minimize the profit they show on their tax returns for tax purposes. This is an effective way to reduce your tax obligations, but not good when searching for an SBA Loan.

This is because the banks that underwrite the SBA Loan request will look to the tax returns to determine whether or not your business can afford to take on the payments of the new SBA Loan. If you are showing very little profit or losses on your tax returns, you are declined before the process even starts.

Advantages of SBA Loans

The advantages of SBA Loans are simple – low cost source of funds to grow your business. Business owners like the program due to the low cost involved with these loans. In addition, there are seldom pre-payment penalties attached to them.

The banks like the SBA Loan Program because the government is guaranteeing a portion of their exposure which makes the program attractive to those participating banks that are lending the money.

Disadvantages of SBA Loans

The disadvantage of SBA Loans is that they are hard to qualify for. Only the financially strong qualify for SBA Loans. They are accompanied by a fair amount of paperwork and hurdles to clear for underwriting. We have found that roughly half of our SBA Loan submissions make it through the finish line and that is because most are dis-qualified prior to submission.

Closing Thoughts on SBA Loans

We are big fans of SBA Loans and always use them as a starting point when consulting with our clients. If we can get you qualified for an SBA Loan, the rates and terms will be hard to beat. Further, the good news is that there are other forms of financing available should we need to use an alternative source to bridge to a future point where the company may qualify.

If you would like to see if your business would qualify, please call me directly at 714-719-8966.

Huntington Coast Capital Is Off To Its Best Start Ever In 2016!

Huntington Coast Capital Is Off To Its Best Start Ever In 2016!

2016 has started out in a full sprint for Huntington Coast Capital. Through the first four weeks of the year, we have secured $11,300,175 dollars in working capital business loans for our clients. This volume represents the fastest start of any year since our first full year in operation in 2011!

The loan mix was varied and breaks down as follows:

* $5,500,000 business loan for a distributor of private label pastas, spices, and mixes secured by the company’s accounts receivable and inventory.

* $3,200,000 construction loan for a ground up development project in San Diego, CA.

* $100,000 SBA loan for a product development firm.

* $500,000 business loan for a auto transportation company.

* $2,000,0000 business loan for an importer of suits and formal wear for men.

Huntington Coast Capital is pleased to have secured funding for these clients! In each case, the client was in need of a creative business loan to grow their business. The business loan options we brought to the table allowed them to realize the full potential of their company.

If your company could benefit from having a choice of business loan options to choose from, we would like to speak with you! We enjoy playing a small role in insuring that our clients succeed.

To your success!

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

HCC Secures $570,000 Loan For An Electronics Distributor

HCC Secures $570,000 Loan For An Electronics Distributor

In a first of two capital placements, Huntington Coast Capital secured a $570,000 SBA 7A loan for a electronics distributor in Chicago, IL.

The company was in dire need of additional capital to meet it’s growing demand. They needed capital to purchase the inventory they then sold on their online platform. Because the company sold at point of sale through the website, they were not a fit for traditional accounts receivable financing.

The company specializes in refurbished tablet computers – mainly iPad and Samsung units. In this business, it is necessary to have the inventory on hand to be able to fulfill customer orders in a timely manner. The newly acquired line of credit will allow them to do just that.

As a second step, HCC is now working with them on a supply chain funding facility for an additional $500,000 to work in conjunction with the existing financing. With a total purchasing power of $1,000,000, the company would be able to grow exponentially.

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

Huntington Coast Capital Announces Commercial Real Estate Offering

Huntington Coast Capital Announces Commercial Real Estate Offering

HCC is now able to offer commercial real estate services in the areas of construction lending, bridge loans, and traditional purchase and refinance transactions.

This new capability will allow HCC to broaden its services to clients. Our goal is to be a one stop shop for all o our clients funding needs. If you are in need of a commercial real estate loan for acquisition or refinance, inquire with us today.

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

HCC Secures $750,000 Factoring Facility For A Coffee Importer

HCC Secures $750,000 Factoring Facility For A Coffee Importer

Huntington Coast Capital secured a $750,000 factoring facility for a coffee bean importer! The company was outgrowing its current lenders capacity quickly and needed a solution to meet the growth needs going forward.

The coffee, mainly beans imported from El Salvador, was experiencing huge demand from their existing and new customers. They needed a capital partner that could provide Letters of Credit and assist in speeding up their working capital cycle once the goods had been shipped to their customers.

Huntington Coast Capital moved quickly to find them the right solution to guarantee they had the funds they needed to take the business to the next level. We saved our client time, money and frustration during the process of finding a new lender.

Could your business benefit from additional capital? Call us! 844-239-2632. Unbiased Consultation. Proven Results.

HCC Now Active in Government Backed Business and Industry Loans

HCC Now Active in Government Backed Business and Industry Loans

Huntington Coast Capital is now offering Business and Industry Loans (B&I Loans) for rural communities.

The purpose of the B&I Guaranteed Loan Program is to improve, develop, or finance business and industry, create employment and improve the economic and environmental climate in rural communities.

Citizenship Requirement Individual borrowers must be citizens of the United States (U.S) or have been legally admitted for permanent residence. Corporations or other nonpublic body organization must be at least 51 percent owned by persons who are either citizens of the U. S. or reside in the U.S. and have been legally admitted for permanent residence.

An area must be rural to be eligible for the B&I Guaranteed Loan Program. A rural area is defined as any area other than a city or town that has a population greater than 50,000 and the urbanized area contiguous and adjacent to such a city or town. You can verify an address for rural area eligibility at http://www.rurdev.usda.gov/rbs/ and going to ERS-Rural Area Determination hyper-link.

Feasibility Studies are required for start-ups or if the project will significantly affect the borrower’s operation. Feasibility studies must be completed by a qualified independent consultant.

Collateral must have documented value sufficient to protect the interest of the Lender and the Agency. The collateral discounted value will normally be at least equal to the loan amount. Lenders will discount collateral consistent with sound loan-to-value policy.

For complete information on the program click this government website link: http://www.rd.usda.gov/.

For information on lenders participating in the program, visit us here.

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