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| Just In... |
Hennessey Capital was named a finalist in Crain's Detroit Business' annual Mergers & Acquisitions Award, presented in conjunction with the Association for Corporate Growth's Detroit chapter. The Company was honored in the Best Deal Maker category and was recognized, along with the other honorees, on Thursday evening, March 19th, at the Crain's Mergers & Acquisitions awards celebration. Read the Crain's article |
| It's a Done Deal |
$250,000 factoring facility for an Illinois staffing company specializing in IT placement, used to support new sales contracts.
$1 million A/R and Inventory line of credit for a Michigan plastic injection molder. Facility was used to re-structure current working capital debt.
$50,000 line of credit for Florida based freight brokerage company.
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| Greetings! |
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Welcome to the April 2009 edition of Growth Capital News. As entrepreneurs scramble to complete taxes and finish 2008 financial reports, we thought it timely to focus this issue on finance. We hope the articles and information below provides valuable insight and helps you keep your financial house in order.
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Banks Revisit Factoring Amid New Credit Realities
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I always tell small business owners that if they can secure bank financing to meet their working capital needs, they should do so. However, the current economic climate is making that more difficult, if not impossible, for many small to medium-sized business owners. Alternative lending options such as factoring and asset-based lending frequently allow companies to say "yes" to new opportunities that wouldn't otherwise be possible. For our economy to return to stability, we need more "yeses" and more credit options. That's why our colleagues in the banking community continue to support alternative financing as a viable credit option for clients who once were or will ultimately be traditional bank borrowers.
There is a reason that factoring remains a vital form of commercial lending after 500 years. Factoring and asset-based lending have the time-tested ability to sustain and grow a company when traditional bank financing doesn't fit or, in today's economy, may be unavailable.
Factoring is the sale of accounts receivable or invoices at a small discount to a factor to obtain immediate cash. Asset-based lending is a credit line based on various asset classes such as accounts receivable, inventory, equipment or real estate. Asset-based lending is often viewed as a stepping stone to traditional bank financing, with loans focused on the value of the asset and not solely on a company's cash flow. Today, it's not necessarily a stepping stone as much as it is a bridge - and perhaps a very long bridge at that. That's because there are no definitive answers as to how long it will be before we see traditional lending back in full force. It will be for the good of the business world (and the greater good, too) if we resume normal lending patterns soon. In the meantime, commerce must keep moving forward if we are to prevent the collapse of business as we know it. Read More
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International Financial Reporting Standards...Coming to the U.S.
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By Sarah Russell, International Group Services Manager, Clayton McKervey
Owners and CFOs of privately held companies, take note. The United States is heading towards convergence with International Financial Reporting Standards (IFRS). This shift makes practical sense because as the world continues to get flatter, privately held companies are increasingly doing business in the global marketplace. Read More
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How to Get Chummy with Your Banker
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 Perhaps you're not especially enamored of your banker right now. About 70 percent of banks recently tightened their standards on loans to companies with less than $50 million in annual sales, according to a survey by the Federal Reserve, and more than 40 percent of the banks reported reducing credit lines for their small-business customers. Read the Inc.com article to learn how you can improve your banker relationship. |
What the American Recovery and Reinvestment Act of 2009 Means to Small Businesses
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 President Obama recently announced the American Recovery and Reinvestment Act of 2009, which, among other initiatives, is targeted at assisting small businesses who secure funding through the Small Business Administration (SBA). Here are a few frequently asked questions that elaborate on what this legislation means for entrepreneurs. Learn More |
How Do Investors Get Paid?
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 The bear market brings several implications for startups looking for funding. Take a look at how venture capitalists get paid during a rough economic climate, from Entrepreneur.com. |
Start-Up Funding
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 By Judy Johncox, Director of Business Services, TechTown Almost every entrepreneur that I talk with believes that,
with their idea or business plan, all they need to succeed is funding. Usually,
they have already invested all of their own available cash, as well as their
time, and are looking for other people's money. Read More | |
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Like what you see? Find other valuable resources and information at HennesseyCap.com or contact Toby Dahm or Jeff Wright at 248.658.1100 to learn how Hennessey can help you or your clients. |
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