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

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

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

“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

Fueling The Economy, One Small Business At A Time!

Fueling The Economy, One Small Business At A Time!

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

2015 has started out with strong momentum. We are seeing more funding requests than ever before. The small business pulse is alive and well and these entrepreneurs need capital to hit their business goals. Below are some recent examples of how our purchase order financing and factoring company lending affiliates made some goals attainable:

$500,000 Purchase Order Financing and Factoring Facility
A young company in the apparel industry is experiencing some explosive growth. Their sales to date have largely been online and on credit card terms with their customers. However, when a large national retailer came knocking, both the size of the orders and payment terms changed.

The company was excited to earn some shelf space with the powerful retailer, but how would they fill the orders, deliver on time and meet the retailers expectations? The company is new and growing and doesn’t yet have the capital reserves to meet the cost of the purchase orders (in this case $500,000 over the next 12 months).

Huntington Coast Capital found them the answer with one of our purchase order financing and factoring companies. As a new company, they didn’t have the time in business or financial strength for bank financing. They needed someone that could act quickly and fund 100% of the cost to the supplier. We procured the right funding and delivered in the time they needed us to. Result – they were able to fulfill the order and have others waiting behind it.

$150,000 Government Loan for a Retail Ice Cream Shop
A retail ice cream shop came to us looking for capital to expand their operations. They used their own funds for tenant improvements to their location, but were looking for additional capital to hire more staff and advertise in local media outlets.

A retail ice cream store naturally would not be a target for factoring companies. We were able to get them qualified under the low cost SBA Express Program. This program is currently at 6% and tied to the Prime rate. The short story is that the company will be able to expand operations to meet demand and take their business to the next level.

$5,000,000 Purchase Order and Factoring Facility
A contractor with an existing business came across an opportunity to fulfill a large order for a government entity. The work order entailed the need for salt to be used in the removal of snow on the road ways. The good news was that they would be selected if they could come up with the wherewithal to deliver the goods. The bad news was that they had two to a max of three weeks to show that they had the funding to deliver or another vendor would be selected.

The company first went to their bank to ask for a line of credit to fulfill the order. The bank, based on the relationship they had for years with the client, was able to provide a $1,500,000 line to assist in fulfilling the order. The problem was they needed around $4,100,000 for the initial round and the bank’s offer was substantially inadequate for their needs.

They called Huntington Coast Capital. We quickly knew who the select lenders were for this request. After interviewing three potential funding partners, the company selected one and were able to meet the order. The goods will be fully delivered by the end of this month.

Could your business use some flexible funding to boost your production? Are you frustrated with the underwriting guidelines of traditional lenders? If so, we would like to assist! Please contact us to discuss the details of your request.

To Your Success!

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

The Difference Between A Commodity Lender And A Value Add Lender

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

There was a time when our clients viewed factoring companies and purchase order finance companies as “too expensive.” In recent times, we are noticing the value of these lenders’ services finally being recognized and the old stigmas of the past slowly fading. Our clients are viewing their factoring company partner as just that, a partner, that is facilitating their business growth without requiring equity in their company.

When you are in search of a mortgage to refinance or purchase a home, you are looking for the lowest rate. This is because the mortgage business is a commodity business and the large players in this space are competing primarily on rate. Note: I am referring here to the traditional, straight forward refinance or purchase for a buyer with good credit searching the market. I realize there are specialty lenders out there that structure bridge loans and provide funding for difficult property types and credit stories – they are a different story and bring value similar to factoring and purchase order companies.

Conversely, when it comes to business funding requests that fall outside of the traditional lender’s strike zone (i.e. funding progress payments, healthcare accounts receivable financing, inventory financing, companies experiencing losses, etc) the market is more aligned with the entrepreneurial lenders out there that will take a bigger risk in return for a higher return.

In a recent example, we assisted a client of ours in a turn around mode. The company was struggling with which direction to take the company. Instead of working together on a solution to take the business forward, each side dug in and refused to alter their plan for what they thought was right. Each side had strong wills and big egos which eventually led to the failure of the business.

Seeing that the company had a strong following and brand recognition, an investment firm came in and provided the capital to get the business back on track. Once all the piling financial obligations had been settled, the company needed a working capital line of credit to grow the business effectively. Because the company was owned over 90% by an investment group, a personal guarantee was not available. This ruled out the traditional funding sources which require a guaranty from the owners in the business.

Here is where Huntington Coast Capital was able to bring value. Our affiliate lenders do not focus on the current financial condition of the business, but rather the potential the company has. If there is market demand, purchase orders and existing sales, you have enough to qualify. We were able to connect them with the right purchase order financing company and factoring company to help them realize their potential. They are now able to put the past behind them and focus on the company’s growth without worrying about the restrictive requirements that would be placed on them with traditional lenders.

If your business could benefit from partnering with an entrepreneurial lender, we would like to speak with you.

To your success!

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