Over the past five years, the import/export sector expanded significantly. However, traditional financing tools available to small businesses in this arena continue to shrink, leaving behind a marketplace opportunity with enormous potential for import/export trade finance and factoring firms.
Launching Factoring University has increased awareness about accounts receivable factoring and raised the presence of CIT Trade Finance as an expert in the industry. However, Factoring University is just one of the initiatives developed by the group’s president Jon Lucas and his team to approach the business from a new angle.
As purchase order finance has become more mainstream, Paul Schuldiner describes two types of PO finance used most often by borrowers — and points out that providing these products comes with a high degree of risk requiring a skill set not usually found in a factoring or ABL environment.
To assist the growth of small businesses in a flat economy, Capstone Capital developed the concept of a limited subordination agreement. As Joseph Ingrassia explains, the financial structure is rooted in factoring that combines a modern mix of PO finance and trade finance to help the lender get paid and provide working capital to the small business.
The 2013 IFA Conference attracts factoring professionals from all over the world to network, learn about new trends, connect with exhibitors and share best practices — and to have some fun. Whether taking advantage of all the event has to offer or enjoying the amenities of Miami Beach, this year’s conference will be an unforgettable journey.
Over the past 12 months, the rising price of crude oil, coupled with the move of energy companies away from coal, has resulted in the emergence of shale gas exploration in the U.S. and Canada. Shale gas production is a low-cost energy alternative that is creating new capital investment opportunities for private equity groups and asset-based lenders.
While the past year has been a challenging one for anyone involved in commercial finance, one of the few niches that has remained solid in 2012 is factoring. IFA founder and CEO, Bert Goldberg shares his views on the industry — past, present and future — and talks about the role the IFA will play in facilitating factoring’s future global growth.
With almost a year under his belt as CEO and president of Bay View Funding, Glen Shu provides an update on the company, its plans for the future, and discusses the factoring industry’s biggest challenge — increasing occurrences of fraud — while offering a solution: keeping the lines of communication open to try to contain the problem before it starts.
As banks and other traditional capital providers continue to limit or deny financing to companies with imperfect credit, many middle-market and asset-intensive businesses struggle to find a cost-effective capital structure. However, there is a viable financing alternative for businesses facing a credit crunch — bifurcated collateral loans.
Although factoring has been around for centuries, Jonathan Lucas, president of CIT Trade Finance, and his colleagues found themselves discouraged by the lack of accurate information about this longtime financial service. Determined to raise awareness and educate business owners on factoring, CIT launched Factoring University as a comprehensive, yet accessible, online resource.