Building and Enhancing Business Relationships

Building business relationships just doesn’t happen overnight. They are an integral part of success. However, it seems as though many business owners don’t want to put the time and dedication into building trusting relationships. That attitude is a losing proposition. The network of business professionals we develop should be our trusting advisors and someone we can count on for prudent advice, especially if we are struggling with a specific client or prospect scenario.

Be authentic and accept people for who they are, is always a good starting point. This will lead to mutual respect which is a building block. Let a business prospect or client know that you’re interested in their immediate need and their business’s future. DO NOT overcharge or take advantage of your clients but instead, advise them and demonstrate how you add value to their business and why. By using this approach you demonstrate relationship-building and a genuine concern for your client’s success.

Overcharging clients will tarnish your reputation and sooner than later new business referrals will become nonexistent. At Capital Biz Solutions we believe in building solid business relationships. It has paid dividends for us, as we have received repeat business from our client base. Whether you're looking for working capital, a real estate acquisition, equipment financing, or the acquisition of another business, we are here to assist you. We invite you to visit us on the web at https://www.capitalbizsolutions.com/ or simply call us at 508 864 7758. You’ll be glad you did. Please be sure to check out our Google Reviews and BBB rating. We look forward to assisting you with your working capital needs.

Commercial Real Estate Sector Faces Risks as Financial Conditions Tighten

Tighter financial conditions tend to have a direct impact on commercial property prices by making it more expensive for investors to finance new deals or refinance existing loans, thereby lowering investment in the sector. They could also have an indirect impact on the sector by slowing economic activity, and reducing demand for commercial property such as shops, restaurants, and industrial buildings.

In a recent analysis, we find that financial conditions are indeed an important driver of commercial real estate prices, and they help to explain the divergent performance of the sector across regions during the pandemic.

In general, economies with easier financial conditions (that is, lower real interest rates and other market conditions that make it easier to obtain financing) saw a smaller decline in commercial property prices during the pandemic and a faster recovery. Commercial property prices have also been higher in countries which implemented relatively less stringent public containment measures to control the spread of the virus, rolled out larger fiscal support packages, and have a higher vaccination rate.

A sharp tightening in financial conditions could thus put the commercial real estate sector under renewed pressure, especially in regions where economic growth prospects are weak and if stringent containment measures need to be put in place to curb new waves of infections.

Our analysis also suggests that trends catalyzed by the pandemic, such as working from home and e-commerce, have an impact on commercial real estate prices.

Increased teleworking, for example, tends to reduce demand for office space, while e-commerce adversely affects the price of retail real estate as consumers shop online. As considerable uncertainty surrounds the future pace and extent of such structural shifts, tighter financial conditions could compound these effects and exacerbate downward price pressures in the affected segments.

Disruptions in the commercial real estate market could in turn potentially threaten financial stability through the connectedness of the sector with the financial system and the broader macroeconomy. Continued vigilance is warranted on the part of financial supervisors to mitigate such risks.

To ensure banking-sector resilience, stress-testing large declines in commercial real estate prices should be conducted to inform decisions regarding the adequacy of capital buffers for commercial real estate exposures. Banks’ commercial real estate valuation assumptions should also be reviewed to ensure that provisions are adequate. In regions where nonbank financial institutions are important players in commercial real estate funding markets, efforts should focus on broadening the reach of macroprudential policy to cover these institutions to mitigate systemic risk. At Capital Biz Solutions, we have access to multiple non-traditional Commercial Real Estate lenders, with unique loan programs that create options for our clients. If your traditional bank is not interested in financing your real estate loan please visit us on the web at https://www.capitalbizsolutions.com/ or simply call us at (508) 864 7758. We will have a term sheet for your request in 72 hours.#creativefinancing.

Diversifying the Client Lending Portfolio: Introducing SPACS

Although special-purpose acquisition companies (SPACs) have been used for decades as alternative investment vehicles, they have recently come into vogue as seasoned investors and management teams have turned to SPACs to mitigate the increased market volatility risk of traditional initial public offerings (IPOs). In fact, 2020 has been a record-breaking year for SPAC IPOs; the proceeds raised in the first eight months of the year have already more than doubled those raised in 2019. This surge has been driven by the influx of high-profile investors and management teams entering the SPAC space, coupled with an abundance of uninvested capital that had largely been sitting out in the first half of 2020.

A SPAC is a newly created company that uses a combination of IPO proceeds and additional financing (PIPEs have been common in recent times) to fund the acquisition of a private operating company. The proceeds raised in the IPO are placed in a trust account while the SPAC’s management team seeks to complete an acquisition of an existing operating company (“target”), generally in a specific industry or geography, within the period stated in the SPAC’s governing documents (typically, 18 to 24 months). If the SPAC successfully completes an acquisition, the private operating company target succeeds in the SPAC’s public filing status and, as a result, the target effectively becomes a public company.

If the SPAC is unable to complete an acquisition in the allotted timeframe, the cash held in its trust account is returned to its investors unless the SPAC extends its timeline via a proxy process. Capital Biz Solutions has recently partnered with a firm that has access to SPAC financing. We are excited to offer this type of sophisticated level of financing. For companies that are generating between 100M to 1B in top-line revenue and are entertaining going public, we can assist in a SPAC financing vehicle. Please visit us on the web at https://www.capitalbizsolutions.com or simply call us at 508 864 7758. We look forward to assisting you with your new SPAC Funding Vehicle.

Why Are Business Owners Seeking Alternative Financing

Today many business owners are turning to alternative financing resources other than their traditional banks. The reasons vary from being leveraged at their bank, not being able to qualify, and everything in between. There is a vast array of loan types out there, from bridge loans to commercial real estate loans, private equity funding, term and equipment loans, SBA loans of all types, and MCA funding.

Very often, the process of a traditional bank can be extremely laborious, and the business owner can become bogged down with all types of documentation they must collect and send off to their assigned lender with a 60% possibility of obtaining a decline.

What’s A Business Owner To Do?

I launched Capital Biz Solutions 10 years ago to assist business owners find the capital they need when they need it! I’ve spent over 18 years as a Business Banker and Commercial Loan Officer, so I’m very familiar with the different loan processes and procedures. Prior to working in the banking industry, I owned a successful Food Service Company for over 20 years. I understand the intricacies of owning your own business and how compromised cash flow can negatively impact your business.

How Can We Help?

We invite you to try our services. We work for you and advocate for you. You’re not in a box regarding your lending options and we make certain we find the best solution for you at the time of your loan request. The lending platforms range from M&A funding to short-term Working Capital and all types of Real Estate Loans. Capital Biz Solutions is able to provide SBA funding, personal and business term loans, working capital lines of credit commercial real estate loans, and Cannabis lending, just to name a few. We do not succumb to a one size fits all mentality regarding your particular loan request.

We have been hired to seek out traditional lenders for those requests that qualify for traditional financing.  We will interview certain banks based on the loan request to find the best rate, term, and structure along with a good portfolio fit for the client. We’re able to do all the heavy lifting while you focus on your business and generate the revenue you need to keep your business moving. Why not leave the heavy lifting to us? We will obtain the capital you need to assist with the growth of your business today and for years to come.

Please call us @ 508 864-7758 for a free consultation or visit our website at https://www.capitalbizsolutions.com.

We look forward to serving you now, and in the future.

Gene Amato CEO Capital Biz Solutions, Inc.

Working Capital Management

The Components of Working Capital Management

What Is Working Capital Management?

Efficient management of working capital ensures profitability and overall financial health for businesses. Working capital is the cash that companies use to operate and conduct their organizations. Effective working capital management ensures that a company always maintains sufficient cash flow to meet its short-term operating costs and short-term debt obligations.

The elements of working capital that investors and analysts assess to evaluate a company determine a company's cash flow. These elements are money coming in, money going out, and the management of inventory. 

Working Capital Management Deconstructed

Effective working capital management requires coordinating several tasks such as managing short-term investments, granting credit to customers and collecting on this credit, managing inventory and managing payables. Effective working capital management also requires obtaining reliable cash forecasts and accurate data on transactions and bank balances.

If a company has insufficient cash to pay for its current expenses, it may have to file for bankruptcy, undergo restructuring by selling off assets, reorganizing, or liquidating. Conversely, if a company invests excessively in cash and liquid assets, this may be a poor use of company resources. At Capital Biz Solutions we take the worry out of obtaining working capital. We have the resources that will provide you with the working capital you need when you need it! Whether it’s short term, a revolving line, a term loan, or financing your accounts receivable. The timeline on funding these products varies, ranging from five business days to three weeks depending on the working capital loan type and request. Please visit us on the web at https://www.capitalbizsolutions.com/ or call us at 508 864 7758. You’ll be glad you did!

KEY TAKEAWAYS

• Working capital management is crucial to ensure that a company maintains sufficient cash flow to meet its short-term operating costs and obligations.

• The elements of working capital are money coming in, money going out, and the management of inventory.

• Companies must also prepare reliable cash forecasts and maintain accurate data on transactions and bank balances.

• If a company cannot meet its short-term obligations, it may face bankruptcy while holding excessive liquid assets or cash may not be the best use of its resources.