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

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.)

HCC Secures $700,000 Factoring Line Of Credit For A Manufacturing Client

HCC Secures $700,000 Factoring Line Of Credit For A Manufacturing Client

Huntington Beach, CA: In the second tranche of financing, Huntington Coast Capital secured a $700,000 factoring line of credit for a snack food manufacturer. In the previous post we discussed the equipment loan needed to meet demand from new orders. This factoring line of credit was established for the ongoing working capital needs the company faces. Everything from managing payroll, supplier payments and other overhead burdens the company faces can now be met more quickly through the revolving line of credit.

Are your expenses piling up while you are waiting for customers to pay you? Through our network of capital providers we have most every business funding need covered. Experience the difference Huntington Coast Capital can make in your growth goals!

Call us at 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.

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 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 $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