Compound Profit Blog

Auto wraps advertising

As a company that finances auto wraps for advertising purposes, Compound Profit receives calls every week from the vehicle wrap vendors and from businesses that consider using vehicle wraps advertising and need financing options. 

Because of the turmoil in the banking systems now and the uncertainty in the economy, many banks that regularly made micro loans for the small business community in the past, are now declining those funding requests.

Compound Profit’s ProntoLease financing for vehicle wraps and other types of commercial signage fills a financing void and has become very popular with wrap shops and their customers.

We recently financed a vehicle wrap for a customer for one of our approved ProntoLease Vendors, Signs Now, in Fort Meyers, Florida.  The vendor owner, Udo Upeslacis, advises that the financing option provided by CProfit’s ProntoLease program helps him close vehicle wrap sales that he would otherwise lose. Signs Now is one of only six PDAA certified shops in Florida and the only PDAA shop in Southwest Florida.  If you are located in Southwest Florida and are in need of a quality vehicle wrap or other commercial signage, contact Udo at 239-277-0553.

Udo advises that… “Customers who want multiple wraps for their company vehicles often suffer sticker-shock and want financing options other than cash or credit cards.  The ProntoLease program allows them to finance their wraps with a single one-page application, no tax returns, no financials and no additional collateral. They can also enjoy tax advantages when they use the ProntoLease financing option.”

Based on the number of inquiries that Compound Profit receives from B2B owners who want to promote their goods and services, I believe that they are finding the vehicle wrap mode of advertising to be very productive.  The ProntoLease financing option allows them to take advantage of the many benefits of a vehicle wrap.

Compound Profit began offering lease-financing on vehicle wraps in 2008 and the demand has grown significantly. We advertise nationwide for vehicle wrap vendors / dealers and their customers who are seeking financing options other than cash or credit card. We pass along those leads to our approved ProntoLease wrap shop vendors across the country.

In summary, vehicle wrap vendors and their B2B customers find that this type of advertising offers a very good Return on Investment (ROI) when they can get short-term financing for their vehicle wraps for as little as $99.00 per month.

Robert Jacobs is an Account Executive with Compound Profit.  Mr. Jacobs helps small to medium size business owners get capital for growth and cash for operating expenses… when the bank has to say no. Visit his web site at http://www.cprofitrj.com  for more information.  He can also be reached at (877) 386-3716, ext 134.  Learn more about Compound Profit’s Smart Capital Advance solution for business owners and for bankers at http://www.smartcapitaladvance.com/jacobs

Business lending solutions

Business lending solutions – who can help?

I have heard the question asked lately “when will banks start lending to small businesses again like they used to”.  The answer I hear from many recognized experts on the subject is “probably never.”

Now before you cringe, stop and think about this for a minute.  During the bull markets of the 80s and 90s, when our economy was supposedly sound, money was relatively cheap and easy.  And while some may have seen these as the “glory days”, in truth it did nothing more than mask some bad decisions and practices by both borrowers and lenders.

We saw people pour money into the stock market without any thought as to the instruments they were buying.  The thought process was their money would continue to grow at ten to twenty per cent a year and their retirement strategy was built on this myth.

We all know how would be non qualified buyers actually obtained mortgages for homes they could not afford, putting nothing down and paying interest only.  How’s that working for us?

So it is easy to point at the banks today and say “see what you did”.  But the fact is there is plenty of blame to go around.  Just like an uneducated decision in personal investments for many had catastrophic outcomes, so too did the borrowing practices of many businesses.

Loans came easy and the more money one “needed” for their business the more they would get.  Business growing through the roof?  Take on more debt to pay for the inventory.  Your fleet of trucks not as shiny as they used to be?  Take out a loan and buy some more. Money was cheap and money was easy.

But were those the good old days?  Not at all! Today the business person must be calculating and intelligent about how he or she finances the business.  With banks lending practices significantly altered, the popularity of alternative financing is booming and financial instruments long overlooked are moving into the forefront.

Take AR factoring for example.  Often viewed as a tool for less successful or desperate businesses, now thriving companies are leveraging their invoices for growth.  By selling their receivables to a reputable third party for a discount, these businesses now have cash in hand to invest back into their business without taking on additional debt or selling a part of their business.  Born out of necessity, this practice is proving to be a far better alternative to high growth companies.

Leasing and micro-leasing is also becoming more and more prevalent. Businesses, in order to survive, are looking to protect their cash reserves.  By leasing equipment, signage, or any asset they can they are able to take full advantage of available third party money to grow their business.  Even if the rates are higher, if an investment in an asset shows a positive return (say a new truck) the prudent owner is leasing that product.  As long as the return on the investment is greater than the cost of the lease, it is a wise choice.

Of course positioning yourself properly is always the most important way to secure the financing you need.  Know your numbers, have your house in order, and be able to articulate your needs.  As a start up, try to keep six to eight thousand dollars in your account for six consecutive months to give lenders the confidence you can repay your debt. 

The bottom line is funders, as investors, do not want risk.  They want a guaranteed return on their money.  The better job you can do to assure them their investment in you is safe, the better you will be at attracting the financing you need for your business.

Alex Cherlin is a Cash Flow Expert with Compound Profit of Virginia. Contact him - acherlin@cprofit.com - for more information.

Commercial Financing Options

Can’t Get Approved for Commercial Financing?  You do have options…

Business Owners, regardless of whether their sales have grown or taken a downward slide, have been hit by the increasingly stringent underwriting policies of most banks and other lenders.  Creditors have found it difficult to approve businesses for credit amidst new and stricter banking regulations.  Even businesses that are financially stable, with good credit, and a long-term track record are finding their credit limits lowered and difficult stipulations added to other loan requests.

Business owners often do not realize they have options outside the traditional lending sources.  Compound Profit offers commercial financing options.  If you need equipment, we can finance most types of equipment, even for start-up companies.  If you need cash flow, we offer programs that can provide the cash you’ve been looking for…. and often without going into debt!  If you need short-term funding to acquire products from your supplier, we can help you with purchase order financing. If you need to purchase or refinance commercial real estate, we can help you with that too.  

We have access to a multitude of lenders in each of these areas of lending and we have the ability to match your needs with a lender who can approve your request.  Whether you have been declined due to credit challenges or just because you are too new in business, we will work to get you approved.

Compound Profit is a business funding and advisory corporation, assisting small and mid-sized business owners in need of working capital and equipment financing.  We have an experienced team of consultants located throughout the United States.  Working with the business owner, we create solutions to overcome their obstacles.  Consultations are free, as are the financing proposals. 

If you are a business owner who has been struggling with cash flow, or who feels hindered by tightened lending policies, there are other options.  Compound Profit can show you those options.

Debbie Browning, Compound Profit Advisor

Phone: 877-386-3716  ext 219

Fax: 888-719-6219

dbrowning@cprofit.com

http://www.cprofit.com

The Future of Small Business Financing

How does the future look for the small business owner? Not too bright, according to a recent Gallup Small Business Index survey, which measures small business owners’ perception of their operating environment, as well as their future expectations. The survey has put into perspective a negative confidence score shift from -17 in April to -28 in July, the smallest value since its inception in August 2003.

It’s also the first time in the index's history that shows overall negative Future Expectations for small businesses; the owners are quite pessimistic about their operating environment, at least for this year and the first half of 2011. In fact, the Future Expectations Dimension of the index has seen the biggest decline – it’s the part of the survey that measures small business owners’ future expectations concerning business income, capital spending, new jobs creation, cash flow and the ease of obtaining financing.

The results of the survey are based on over 600 small business interviews in 50 states. More information about the survey can be found here: discouraged business owners.

It’s the worst score in 7 years, and there’s nothing complicated behind it: the consumer spending growth is quite slow and a snowball effect leads to less capital spending, fewer jobs, and so on. It is clear that small business in New Jersey and elsewhere is really struggling. We are talking about a lack of consumer confidence, as well as about very difficult credit conditions.

Yes, it is true: one out of three business owners considers that getting credit is difficult or very difficult these days, according to the survey. The recession has made the business owners spend their money with care, but the banks are now even more careful.

In a recent meeting with a bank officer, I explained how the use of our smart cash advance product for working capital only evaluated one of the 'four c's' of banking-the character of our customer (collateral, cash flow, character, credit).  He looked at me, and only half jokingly said, "Four c's?  We now have 21 c's! Banks can't make loans except to people who don't need money!"

So, as we get in touch with our markets, recognize they are hurting - can't get lines of credit. We seem to be uniquely positioned to make a seismic change.

Reynolds Dods, rdods@cprofit.com

Compound Profit - New Jersey and eastern Pennsylvania.

Phone: 877-386-3716 ext. 240 / Cell: 609-289-6256

The loan broker

The loan broker – myth or reality?

Lost in the sauce of all the rhetoric about 'increasing loans to small business', improving working capital', enhancing SBA loans, etc., all chiefly to help small businesses grow, is, 'what about the small businesses just trying to ride-out the storm'? They aren't or weren't growing, they were maintaining. Making money, employing people, buying goods, but year in, year out, about the same size.  America is full of such businesses, and they are vitally important. 

But in the autumn of 2008, a perfect storm hit this vital sector of the economy. With the financial meltdown, the customers of these businesses had their access to capital reduced. Banks either reduced existing lines of credit or pulled them in all together, and furthermore, they stopped making new loans.  So what do you do? You slow down your payments to the people you owe: vendors, landlords, even banks. Other vendors, needing the business to continue, put up with this. Same for landlords as long as it doesn’t get out of hand. 

But banks can’t do that. They aren’t allowed to, as the regulators get after them. So now, banks have portfolios of loans in default, typically called “special assets”. These often get moved from the normal loan servicing department to ‘special asset’ departments - the loan workout people.  And now, the businesses aren’t getting service calls from their friendly banker, they are getting calls from hard-nosed people wanting their money NOW.

Before 2008, there were people who routinely helped in this situation: the loan brokers.  They would review the portfolios of special assets and then go find other institutions with an appetite for more risk to buy these loans.  Well, that money is GONE.  So, here we have a situation where banks have more ‘special assets’ than ever, and no place to get rid of them. They are stressed out. On the other side we have good, hard-working business owners who did nothing wrong, getting hard-nosed collection calls.  They are stressed out. Certainly, nobody involved in these situations is happy.

Let’s spread some happiness.

By connecting with the special asset managers in banks, profit advisors with Compound Profit can identify bank loans with businesses which fit our smart cash advance criteria.  Perhaps the bank’s special asset manager even makes the introductory phone call. The business owner will likely be very receptive to someone offering a way out of the terrible place they find themselves in. They will be incented, and likely won’t have an issue with a small fee if it offers a solution. The banker as well is incentivized-they have a bad loan they want to get off the books, so they may be quite happy to absorb some fees - take a small discount - to get rid of these loans.

So, we set-up the smart cash advance, work with the bank so that they can deduct funds from the advances to start to amortize the loan, with the balance going to the business. This one nudge may be enough to get the business back on a growth track. Or even with no growth, maybe now THEY can pay THEIR creditors on time so they in turn can increase the cash flow for a large group of people.  All because we want to make some people happy.

And long term, chances are that the newcomers to Smart Cash Advance will come to appreciate this flexible product and will prefer it over more traditional funding vehicles going forward.  And since most people like to spread good news, they will tell all their friends.

Reynolds Dods, rdods@cprofit.com

Compound Profit-New Jersey and eastern Pennsylvania.

Phone: 877-386-3716 ext. 240 / Cell: 609-289-6256

Preparing For Equipment Leasing and Factoring

Many small business owners inquire about equipment lease financing without having too much time to take the proper decision. In many of these cases, the business owner needs the equipment leasing / financing "yesterday". It is very important to be prepared in advance, so that you can help make the process run as smoothly as possible.

Almost all funders will require the same information with some tweaks here and there; therefore, it is recommended to have some of the basic information available at your fingertips before you make an inquiry.

Some of the documents you will likely need will be a brief description of your business and the need for equipment, the last three bank statements, a quote or invoice, and articles of incorporation.

Having this information ready will speed up the process and allow the funder to give you a quick opinion on your situation. More information might be needed, but this would give you a good starting point and will speed up the process by a few days.

Preparation for accounts receivable financing is relatively simple. Along with your application, you will need to submit an accounts receivable aging report and a customer list. While this may seem simple, you might be surprised to know that many businesses do not have an accounts receivable aging report readily available. Software such as Quickbooks makes getting this report very simple.

Vincent Mangone is a Principal & Compound Profit Advisor.  Mr. Mangone helps business owners get the capital they need even when the bank says no. Visit his website at http://www.cprofitny.com or contact him at 877-386-3716 ext. 116

Compound Profit and MacroAir enter strategic partnership

MacroAir Technologies recently announced their association with Compound Profit, also known as C-Profit. Through the collaboration with C-Profit, MacroAir will be offering the ProntoLease program to over 200 independently owned and operated resellers of MacroAir HVLS products.

Compound Profit® will provide affordable financing for companies who would like to leverage the benefits of MacroAir Technologies products, while keeping their available cash in the bank for other uses.

Founded by Walter Boyd, the inventor of HVLS commercial fan technology, and a family-owned company since its inception in 1995, MacroAir combines technology with a unique application of the laws of physics to produce air-circulating fans for use in large industrial, commercial, and agricultural / farm buildings.

Founded by James Penny, Compound Profit, the #1 Brand in Alternative Financing, is a National and International team of Profit Advisors with hundreds of years of combined business experience. Compound Profit® is dedicated to creating jobs, helping businesses grow and getting them compound profit by improving their cash flow, reducing their operating costs and increasing their bottom line. Compound Profit® does this through its franchise network of Profit Advisors, offering factoring services, equipment lease finance, purchase order financing, and MerchantCard finance.

MacroAir's association with Compound Profit allows MacroAir resellers to provide payment plans options to customers, enabling them to finance complete orders while providing money-saving benefits to MacroAir customers. For more information about Compound Profit, visit http://www.cprofit.com

Compound Profit announces its $500 in five minutes reward program

Compound Profit(R) Corp. is dedicated to invoking seismic expansion in the wealth and success of small businesses. They are now offering a $500 REWARD for any referral sent to them that uses their receivable finance service. You can learn more at: http://www.youtube.com/watch?v=Te3aKpRFhGM

According to the company's CEO James Penny, "We will touch every small business, in every neighborhood across our great nation, one business at a time. It is time for us to stand up as Americans and do what we can do to help the true backbone of our economy, our small businesses.

By helping companies 'Compound Their Profit' we create opportunity, jobs, and contribute to our local communities." And now with our new $500 Reward program we can get the word to a huge number of businesses; while at the same time giving families the opportunity to supplement their income. Imagine how many families could use an extra $500 in these tough times. We do not limit the number of referrals a person can send in so there is no real limit on how much a person could earn!"

Compound Profit's(R) growing team of Profit Advisors is invoking seismic expansion in the wealth and success of small businesses. While the news is squarely focused on the recession, unemployment, and tough times; Compound Profit(R) continues to grow. They have helped create thousands of jobs through their clients' businesses. In addition, Compound Profit(R) has continued to grow to over 200 strong to include Area Developers, Franchise Owners, Account Executives, and Home Office Staff. With the impact Compound Profit(R) is having in our economy it is no wonder they were recently featured in USA Today as a World Class Franchise.

When asked what angers him most about the conditions of our current economy, Penny shared a story of a recent conversation where a businessman stated it's all over for America and we will soon need a Third World Country to bail us out. You could see the determination in Penny's eyes when he stated, "Hearing these words made my American blood boil and steam come out of my ears. Our country was built on hard work, determination, sweat and blood. Since when do we need another country to bail us out; where did all this government bailout mentality come from??? It is time for us to remember how we built America, and stand up and fight for our dreams. It is time to rebuild the foundation of our economy from the bottom up. It is time to help small businesses Compound Their Profit, and we will do this!!!"

It is no wonder Penny is so passionate about the American Dream - he has lived it. James grew up in a family of 12. Growing up as one of 10 children, the family dinner table was built of two sheets of plywood end to end as that was the only way they could eat together. His Dad was a hard working mechanic who taught him about the American Dream and always said, "Dream your dream and never give up no matter what." Having grown up in a large family with limited income, Penny knows firsthand what an extra $500 can do for a family.

It took every penny earned as a mechanic to care for the Penny family, so there was no silver spoon or trust fund to help Penny build success. According to Penny, "America is still the one country you can start at any level of life and build your dream. There is no secret here, you must dream your dream and never give up no matter what. America is the land of opportunity!"

Penny has been able to live his dream, and has a great desire to help others do the same. Penny feels like the most fortunate person in the world. "I get to help my franchisees build their companies, knowing they will help small business build theirs. Imagine having the honor of leading a company that will touch so many businesses, communities, families, and lives! That is what Compound Profit(R) and their Profit Advisors are all about."

To find out more about Compound Profit(R) and the $500 Reward program view our You Tube video online: http://www.youtube.com/watch?v=Te3aKpRFhGM or visit our website http://www.cprofit.com/