Merry Christmas

Make a Smilebox greeting

How healthy is your bank?

Look at this...finally a site that makes it easy to see.

http://banktracker.investigativereportingworkshop.org/banks/washington/

http://banktracker.investigativereportingworkshop.org/banks/oregon/

Quoted in Portland Biz Journal

The same credit crunch that’s making it so hard for businesses to obtain bank loans is striking alternative lenders, further limiting companies’ options for gaining working capital.Businesses that have relied before on asset-based lending — in which the loan is secured by collateral such as inventory, equipment or accounts receivable — or those that would like to explore the possibilities, may find such loans in limited supply. That may be especially vexing now, as spring is often a time for renewing bank lines of credit.Nonbank lenders specializing in asset-based lending— particularly those targeting small-to-medium businesses and entrepreneurs — are having a hard time getting capital to keep making loans, said Andrej Suskavcevic, CEO of the New York-based Commercial Finance Association.“In the fourth quarter of 2008, the credit markets imploded,” Suskavcevic said. “Banks began limiting their lending opportunities and shutting down credit availability to businesses.”That drove more borrowers to asset-banked lenders, just as some of those lenders found that their own credit limits were being squeezed.With less capital to lend, asset-based lending declined 1.9 percent from the third to the fourth quarter of 2008, according to a survey by the association. “The only reason we are not working with more businesses is that we, too, are limited by the credit situation, since we leverage our equity with bank debt,” said Len Ludwig, CEO of Vencore Capital in Lake Oswego, an alternative lender that offers financing, including equipment loans, to borrowers nationwide.“We have a limit on the amount of bank debt we can get today,” Ludwig said. “It’s very frustrating for us, because we can’t generate more loans.”Unable to take on every potential customer that meets the underwriting requirements, Vencore has become more selective, Ludwig said.“There are companies that in normal times would have access to credit and debt from a bank,” he said. “They, for the most part, are more advanced, more mature companies, and are now turning to us.”Meanwhile, companies that normally turn first to Vencore might not be able to obtain loans, Ludwig said.Businesses that may need credit soon should start investigating their options, especially if they are counting on renewing an existing line of credit, said Suzy Oubre, owner of Alliance Commercial Credit Group in Vancouver.“Most lines of credit are renewed every year,” with a significant share coming up between April 15 and the end of June, Oubre said. “This year I anticipate that there will be a lot of people axed out.”Over the past month Oubre has seen a flurry of interest in asset-backed lending, but borrowers often balk when they realize the higher costs of these loans.A competitive annual rate on a $3 million asset-backed loan might be 12 percent or higher, she said. A $750,000 loan could cost 15 percent to 16 percent.“People believe they deserve better,” Oubre said. “They’re never going to pay the higher cost of financing if they don’t have to, so they’re hitting up all the banks. But this may be all that’s available to them.”For riskier business borrowers, asset-backed lending may not be available for several months, because of the tighter credit markets these financiers face, Suskavcevic said.“I anticipate that you’ll see an increase in asset-based lending in the second quarter, as credit markets open up,” he said. “It’s going to allow the lender base to help get the economy back on its feet.”Ludwig, who believes a turnaround may take longer to occur, urges businesses to take extra care with their finances until credit loosens up.“Smaller companies need to figure out a way to be cash-flow positive, and keep potential lenders updated about their progress,” Ludwig said “That way they’ll be at the front of the queue when the dam bursts.”

Happy Tuesday

A break from work.... this is really sweet.

Our Interest Rates are Hot This Summer! www.alliancecomcredit.com
Spring is almost over and summer is ready to step in. Temperatures are on the rise and people everywhere are anxious to get out and about and enjoy the summer heat. The financial markets, however, still remain slow to warm up. Many of my clients are seeing their sales drop by 20-25%, making it difficult for them to complete loan renewals. Despite the seemingly frigid lending climate, you can still provide options to your clients, enabling you to retain customer deposits and come out on top. Even if your clients cannot be renewed for their credit line, or if they are unable to obtain financing for their commercial real estate loans that are coming due, they still have options available to them in the form of alternative lenders. By helping them into financing with one of these lenders, you are creating a win-win situation for everyone. You are avoiding becoming the "bad guy" for turning down their loan, and you are providing them with reliable bridge financing options until they are once again able to obtain traditional financing. I can work with you to help warm your client up to the idea of alternative lending. I am happy to make a joint call to discuss options, if you feel it would be helpful in preserving the deposit portion of the relationship. Often times customers are reluctant to embrace alternative lending due to the high cost Interest rates usually hover around 12-13% or higher, and that can be a difficult pill to swallow for someone who is already struggling financially. I am pleased to announce that I have drastically reduced rates on my private money products, starting at just 8.85%! With rates this low, you are able to present your clients with options that are comparable to bank loans cost-wise, but offer the speed, convenience and flexibility of hard money loans!Make me your first call when you have to say "NO" to a customer. Whether it's a prospect that you had hoped to help, or an existing relationship you would like to preserve, your customers still need banking and cash management services. If you know that you can't take care of their financing or loan request, and I have an option that will work, let's call on the customer together.

Call me anytime with scenarios; you never know what solutions I might have.

My toll free number is 1-877-594-9423.Take care, Suzy Oubre

Loan renewals 2009

I'm not sure if you saw this, but this was published in the VBJ last month. A little heads up for business owners who either have a line of credit with a bank, or for those who may be thinking about applying.

http://www.vbjusa.com/stories/2009-05-08/thinking_outside_the_box.html

Now is the time to be proactive on helping your customers. Those people that take the extra step to help business owners find the necessary financing they will need during tough times will retain their customer relationships and dedication.

Check out my latest newsletter for more tips

Let me try this again...Must see

Bumplock Device

Here is a break from work...... This video to so sweet. It the reunion between two guys who raised a baby lion, released it back to Africa, then came back to find him as an adult.

http://today.msnbc.msn.com/id/26184891/vp/25796645#25796645

Time to Shine the Clubs

How time is flying by!…. Golf season is just around the corner.

This year there are some changes to the Woodland Rotary Clubs annual golf tournament. Most important one is that we have switched to a 0800 shotgun start.

Despite the fact that this is going to be a tough year on the economy, we still have to dig deep in our pockets to help those less fortunate people. This fund raiser is our biggest project to raise money, and has the potential to help many. Last year the Woodland Rotary Club provided Christmas to over 40 families. That included wrapped gifts to put under the tree for the kids, and all the supplies to cook a holiday dinner for families who have been hit hard with the economy. We can’t do this without your help.

Check out the attached link with all the details. Come golf for a great cause! It’s also a great networking opportunity. Invite your favorite clients for a fun Friday, at beautiful Lewis River Golf Course.

Woodland Rotary Golf Tournament

Sign up today!

Suzy

Look Beyond the Bank to Keep Your Business Going in Tough TimesIn my last newsletter, I mentioned that a credit correction was coming. Well, it’s arrived.Right now it’s more important than ever to make sure your customers are educated on “other financing options” as credit standards continue to tighten. As you all know, there is very little formal education on financial matters in school; hence, we have a nation of poor money managers. For this reason, I suspect that both business and personal bankruptcies will be on the rise. Educating our youth as well as our business clients on financial strategies has really fallen upon us. How many business owners do you know have a MBA? How about any formal business financial training? Or are they from the most common “school of hard knocks”?When you need to exit a credit or have to deny a borrowing request just remember that there is a very big world outside of the bank! A world that isn’t confined to loan covenants like debt-to-worth ratios, tangible net worth, or federal regulations—I could go on and on. Here are a few financing options to keep in mind:
Accounts receivable lines of credit
Minimum request $200,000, no maximum
Non-conforming commercial real estate loans
Bridge loans from $250,000 and up
Factoring Invoices
Minimum request: $20,000 per month
Sale lease back on equipment
There are also times when a simple refinance isn’t the solution, when a business is just out of control. Over the years we have built relationships with professionals in the industry who specialize in helping our clients make the necessary changes to get back on track. Back to why they went into business to begin with—to make money! Call me if your customer needs:
Debt restructuring. This happens when there are not enough assets to cover all the debts.
Strategic planning for selling the company.
It’s time to work to preserve customer deposits and jobs and keep the economy growing by making sure that when your customers are cash-flow negative, or cash strapped, you can educate them on some financing options.Early intervention is essential during a recession to keep our customers in business. If you see that a customer needs help due to lack of profitability, frequent overdrafts, uncontrollable growth, poor management, or even tax delinquencies, you need to call me at 1.877.594.9423.
Have a Happy Halloween, and what a beautiful fall it’s been so far! Suzy Oubre Alliance Commercial Credit GroupPS. if you need additional information on any of these financing options I have more detailed explanations on my website at www.alliancecomcredit.com or feel free to call me anytime.

Let's see if this works. This guy is amazing! This is the pilot that landed the plane in the Hudson. Makes my heart pound. Check out the video

Economics of 2009

I went to an interesting presentation yesterday with a panel of economic professors. There are some well known speakers that we hear from at many of the banker lunches, but yesterday I listened to the first honest one. He painted the real picture of just how difficult 09 will be, as well as the first 2 quarters in 2010.

In the great depression of 1930-40's factoring invoices was a method that business owners needed to use when their sales had plummeted, and profits suffered. They say history repeats itself, and in fact it does. The bank credit correction that is taking place will force business owners out of business, if they don't know what other options are available. With no formal training in school, it will be up to the business professionals to keep an eye out for those owners who are suffering from negative cash flow. Attorney's, CPA's, Bookeepers, Payroll Service providers, need to be proactive with understanding what the client needs before it's too late. I would encourage people to speak with all their clients on how their banking relationships are going, since there are a lot of sudden changes taking place right now.

Credit lines may not be renewed, banks in a crisis have frozen credit lines with the customers, letters have been going out letting people know their loans are due... Keep a sharp eye out, and a helping hand.

Go to my website and check it out http://www.alliancecomcredit.com/

Suzy

Special Moment

I love this picture, how often do you see this many generations of presidents together at one time?



http://www.msnbc.msn.com/id/21134540/vp/28542428#28542428

Pay it Forward

When someone you know mentions that they are off to a Rotary meeting, have you ever wondered what exactly is rotary? The common thread between Rotarians is that they care about other people and they want to be a part of making the world a better place. Look at this brief video that RI has put on youtube. There are several other videos as well you can look at. Wonder no more.......Let's make 2009 a great year.

Hope you had a safe and Happy New Years celebration.

Suzy