[Kevin Henry-Seacoast]

Hi DF,

As many of you know..... We are Seacoast Business Funding, a division of Seacoast Bank. We offer flexible working capital solutions in the forms of factoring and asset based lines of credit. We typically work with companies ranging from $2Mil in revenue to well over $300Mil in revenue in a variety of industries all over the US. We are unique in the market as we are bank owned. If gives us the luxury of competitive cost of funds, more flexibility as we don't have a senior lender to answer to, and we can still work with challenged companies or companies in transition.

What you may not know (as we don't advertise it much) is that we provide factoring facilities or asset based lines of credit to smaller factoring companies and/or asset based lenders. We have also acquired portfolios of factoring companies and/or asset based lenders.

Our ideal client:
-Based anywhere in the US.
-Provide factoring services or ABL facilities to regional customer or targeted industries. Assets considered AR, Inventory, and M&E.
-Strong owner/team with deep relationships in their respective communities/industries.
-Facility need from $2Mil to $15Mil.
-Seeking a cost effective financial partner that clearly knows the industry.


Best,

Kevin

[abfunders]

... and no COJ ;-)

[Kevin Henry-Seacoast]

Nope. Just a bunch of happy long term customers.

[Mynameisbob]

Any Factors out there that offer a true line of credit without the tedious process of submitting invoices?

[Kevin Henry-Seacoast]

Any Factors out there that offer a true line of credit without the tedious process of submitting invoices?

MyNameisBob,

We offer asset based lines of credit for companies with at least $1Mil in AR outstanding. The client submits a weekly borrowing base certificate instead of the individual invoices. We have also do legdered ABL deals often for companies that have an excessive amount of invoices on a regular basis that may not qualify for ABL.

KH

[Mynameisbob]

That would be a great product if you could offer it to smaller companies doing 1-5M annually.

[Kevin Henry-Seacoast]

Mynameisbob,

Most companies that small are not sending out a ton of invoices that make submitting the individual invoices a burden. A company doing $5Mil/year is likely send out less than 100 invoices a month. Loading them into our system is very easy. A lot of large end customers require that you submit invoices by portals. While submitting the invoice to the customer portal they can submit to us at the same time. There are some smaller ABL offerings out there, but from a cost perspective the client would likely be better off with a factor facility with us.

I am closing a $3Mil facility for a $15Mil company right now. They had an ABL facility with one of our competitors. 85% advance on AR and a rate a tick over 16%. 25% concentration with any single debtor and no customers with N90 terms. We offered a $3mil factoring facility with a 93% advance on AR and came in at 10%. 60% concentration cap and N90 is not a problem.

KH

[Mynameisbob]

Kevin do the account debtors have to sign assignment contracts. The bigger ones like your walmarts amazon,and starbucks.

[Kevin Henry-Seacoast]

Kevin do the account debtors have to sign assignment contracts. The bigger ones like your walmarts amazon,and starbucks.

MynameisBob,

For factoring we send a notification letter to the debtors, but it does not have to be signed. Many finance companies require signed notification letters.....we do not.

KH

[Mynameisbob]

MynameisBob,

For factoring we send a notification letter to the debtors, but it does not have to be signed. Many finance companies require signed notification letters.....we do not.

KH

Is there a way for factor to collect without having to collect directly from the company's customer? Like ACH the company's account rather than having assignments and lockboxes set up ect.

[Kevin Henry-Seacoast]

Is there a way for factor to collect without having to collect directly from the company's customer? Like ACH the company's account rather than having assignments and lockboxes set up ect.

Bob,

We would require a lockbox for collections or a controlled account if their contracts with customers do not allow payments to 3rd parties of lockboxes. Walmart, Amazon, and Starbucks allow payments to lockboxes and vendors of theirs are factored on a regular basis. WalMart and Amazon use internal systems for purchase orders, invoicing, and payments (typically ACH). This makes the verification of the invoices a much softer touch with the customers. The client/vendor is responsible for collections. We are not making those calls.

[Mynameisbob]

Bob,

We would require a lockbox for collections or a controlled account if their contracts with customers do not allow payments to 3rd parties of lockboxes. Walmart, Amazon, and Starbucks allow payments to lockboxes and vendors of theirs are factored on a regular basis. WalMart and Amazon use internal systems for purchase orders, invoicing, and payments (typically ACH). This makes the verification of the invoices a much softer touch with the customers. The client/vendor is responsible for collections. We are not making those calls.

Can you offer ledgered lines of credit? Internex Capital Offers a line of credit without assignments or customer contact. They do however require a lien placed against the AR.Are there any more factors that offer this? Thanks for answering my questions Kevin.