[Hedley Lamarr]

Ladies and Gents,

Just an observation.... Opportunities on the forum have been small, over-shopped, retreaded, stacked, back-doored, stolen, and generally dumpster fires.

Not that I come here for deal flow.....it's mostly for educational purposes and maybe build a few relationships.

Who here would like to do some marketing for larger deals?

As most of you know, We are Seacoast Business Funding, a division of Seacoast National Bank. We offer flexible working capital solutions in the forms of factoring and asset based lines of credit. We LOVE the following industries: Staffing, Produce, Beverage, Cell Tower Services, Niche'e Manufacturing and Distributing. I challenge any broker to find a company in the aforementioned industries doing $15mil to $50Mil a year in revenue with a working capital need. I promise you, we will move fast, be aggressive on terms and be the lowest cost of funds you have probably seen in three years. You will have one happy client and enjoy some nice commission checks for the life of the client.

Best,

Kevin
Kevin.Henry@SeacoastBF.com

[Matrix1]

Listen and don't take any offense to this. Obviously the reason there arent many comments on this thread is because there are so many other people in here doing the same thing you're doing. Everyone has the best deals and everyone can get every deal funded faster and better. My question to you is more about what you actually have to offer as far as marketing for these so-called larger deals? Listen Kevin maybe you are somebody we should sign up with a killer shot to and maybe that will come in time but why don't you elaborate a little bit more about marketing for some of these deals. You clearly have certain industries that you like so having said that. Why don't you make it worth submitting deals to you and p.m. me and give me an idea how are you the best way to market these industries how are you the best way to market these industries are

[Matrix1]

[QUOTE=Matrix1;69704]Listen and don't take any offense to this. Obviously the reason there arent many comments on this thread is because there are so many other people in here doing the same thing you're doing. Everyone has the best deals and everyone can get every deal funded faster and better. My question to you is more about what you actually have to offer as far as marketing for these so-called larger deals? Listen Kevin maybe you are somebody we should sign up with a killer shot to and maybe that will come in time but why don't you elaborate a little bit more about marketing for some of these deals. You clearly have certain industries that you like so having said that. Why don't you make it worth submitting deals to you and p.m. me and give me an idea how you're going about marketing these larger deals

[RichardGerard]

Matrix1,

Finding deals that fit into the wheelhouse of a true ABL Bank are likely those that will come via referral- most notably turn downs from banks, or recommendations from clients' trusted advisors (CPA's, Attorneys etc.). Marketing for these types of deals means understanding them, and marketing yourself.

Placing a $5M deal with a 1% line and/or set up fee, for an originator, is a nice payday (not to mention the ongoing monthly residual income). As for people on this thread doing what SeaCoast BANK is doing- there aren't any other BANKS on this thread. Yes, there are factoring firms and 'funders', however not seeing any banks.

It's understandable that the main focus of your entity is MCA. Those deals close quickly and offer the highest commission percentage. With many clients seeking to stay away from advances, having resources like Kevin is an advantage to you, your business, and your clients.

[Hedley Lamarr]

Richard,

Thanks for the kind words. Keep in mind that we are a division of the bank, but can fund challenged companies or companies in transition.

Matrix1- I will give you some insights on who, what, where, and why publicly so others can benefit. If you or anyone for that matter wish to learn more, I would be happy to schedule a call. kevin.henry@seacoastbf.com

There are a lot of differences between cash advances/term loans/mezzanine debt vs. bank senior secured facilities, ABL, and Factoring. With cash advances or term debt you are basing your lending/advance decision based on the cash flow of the business and the credit worthiness of the Company and Owner. Banks will look at the same items first when issuing a line of credit, but will also look at the underlying assets as well. (AR, Inventory, and M&E). Non-bank
ABL lenders and factors work backwards...we typically look at the assets first. Who are the customers and how do they pay are what's most important. What is the inventory or equipment, how is it sold, stored, or used, and ultimately...if something goes wrong how do you sell it quickly.

Our target customer is businesses selling to other businesses that are credit worthy customers. Generally the prospect client is selling on terms and the waiting for payment causes working capital issues. The client may want to entertain financing inventory and M&E if need and prudent and we can accommodate the requests in a lot of cases. If the Company's balance sheet is equity negative and the company is not profitable, we would likely start with an AR only facility until we see financial performance improve.
There are a lot of times when companies need non-bank financing where ABL or factoring is a good tool. Sometimes it's when something bad happens like losing a customer. There are times when the Company is performing extremely well and has a small bank line that is not keeping pace with the growth. In those instances banks general don't bet on hyper performance and the company would be better off swapping bank rates for availability with an ABL or factoring facility. If they use the facility to capture the potential growth and opportunity they can flip bank to a traditional facility once the business stabilizes and is considered bankable. The other instance would be when companies are young. As you well know, banks will typically not extend too much credit to young companies.

Out target customer would be a young, troubled, or company in transition that is not getting the availability they need from traditional sources and needs liquidity to right the ship or put their foot on the gas to capture the opportunities in front of them. We seek companies generating revenues from $2mil on the low end to well over $100Mil. Clients typcally have a facility need of $250K to well over $20Mil. There are 450 factoring companies in the US. We are going to really shine on larger deals because not many factors can do deals north of $10Mil and it will be very hard for them to compete with us on pricing. Our cost of capital is VERY low and I doubt anyone on this forum has a cost of capital as cost effective as ours.

Industries we love: Business services, staffing, IT services, cell tower services, food (especially produce), beverage, niche' manufacturing and distribution. We avoid construction and healthcare where there is payer risks and typically don't chase after trucking deals. We know what we know very well.

Marketing: I have been in capital markets for well over 25 years. I ran an equity trading division for a major company, worked for a family office doing M&A work, was an investment banker, and ran capital markets for a turnaround advisory firm before becoming a lender. Over the years I have learn that to be successful you have to target what you know. Shotgun marketing can fall on deaf ears. When a good prospect realizes you know something about his business you have a leg up. I spend a lot of my time going to industry focused trade shows where I am the only guy in the room vs. going to an event where there are 100 of my competitors. There is NO immediate gratification to it, but it works if you build a reputation as a service provider or investor/lender that knows an industry extremely well. Knowing the industry well also helps knowing what to look for in deals and keeping you out of trouble post closing.
I know a lot of the brokers on this forum spend an enormous amount of time and money marketing. If you know an above mentioned industry very well, perhaps you can market to your contact lists that you have a relationship with someone like us.
Cash advances do pay handsome commissions very quick. ABL/Factoring and other non bank debt products typically take longer to close and the payouts can be over the life of the client or at closing depending on product and structure. Typically factoring/ABL deals close in 30 days. I closed a $3mil factoring facility in 14 days from first phone call with someone from this forum. He had NEVER done a factoring deal before in his life and is now enjoying the monthly commissions from a client that will likely be with us for a few years.

Cash advances and MCA products have a place in capital markets. There are a host of other products that can be useful tools for you contacts that if you don't know about them or use you should..... I know most have you have spent a lot of time, money, and energy marketing and have built enormous contact lists....use them to YOUR and your CUSTOMER's advantage. Trust me....if you don't offer a client a solution that works in this environment.....somebody else will.

Sorry for being so long winded, but I wanted to not only answer you, but also share those thoughts with others.

Best,

Kevin

[Matrix1]

I appreciate both of your insights and sincerely apologize for the double comment. Maneuvering around this group sometimes on my mobile phone is not always easy. Again thank you and have a great weekend