The Benefits of Vendor Relationships

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Your vendors are critical to your success in the market and your profits; they are at the heart of many of your organization’s processes and activities. However, you might not consider how important it is to effectively manage your relationships with them. Also, procurement should be considered as a part of your overall business strategy. Doing so will have a myriad of beneficial effects.

Creating loyal relationships with good vendors are hard to come by. When you’re working with excellent vendors, you should be doing everything you can to strengthen your relationships with them and build loyalty. With effective vendor relationships, you can ensure efficiencies that lead to smooth processes, which can help you and your business.

In addition to the benefits, the key to realizing these benefits is finding a financial partner who can help you make equipment financing a fundamental part of your sales strategy.

Vendors are a crucial part of a successful sales strategy. Creating and maintaining meaningful and long-lasting partnerships with them will lead to increased business for you as well as the vendor. You will also gain recurring business from your loyal customer base while solidifying a strong reputation in your industry and network. In today’s world of online information and resources, having vendors who can recommend you and make you stand out from everyone else is extremely valuable.

BENEFITS OF SELLING –

  • Consistent order volumes
  • Constant, linear demand
  • Better financial standing than most businessness
  • Market recognition as an approved vendor
  • Equipment manufacturers have a large client list

GROWING YOUR BUSINESS WITH VENDORS AND PREMIER BUSINESS LENDING – A well-structured business finance program, with a strong, experienced partner is a great way to grow your business. Financing is a powerful sales tool, which, when used correctly, can take your business to the next level.

  1. Get the capital you need to run your business in less than 5 days
  2. Prime plus lending with no hidden fees or catches
  3. We offer traditional small business loans
  4. 2 to 10-year term loans, for $50,000 to $10,000,000 in financing, with minimal monthly payments

OUR RATES – We determine our rates by the strength of your business’s overall financial profile. As responsible lenders, we have prime plus rates and provide excellent customer service to our clients.

Forecasts Continued Growth for Trucking, Freight Economy

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Today, the American Trucking Associations released its latest forecast for the next decade of freight transportation, projecting continued growth for freight transportation overall and for the trucking industry. As the U.S. population grows and the economy increases with it, we will see continued gains in demand for freight transportation.

Freight Transportation Forecast 2017

  • Follow that up with 3.4% annual growth through 2023
  • Modest growth rate of 2.3 % in 2017
  • ATA projects that 15.18 billion tons of freight will be moved
  • Figures will rise 36.6% to 20.73 billion tons in 2028

While overall truck volumes will continue to rise, and trucking will remain the dominant freight mode its share of freight tonnage will dip to 67.2% by 2028, with pipelines picking up most of the additional market share, and, to a lesser extent, rail intermodal. As we look ahead at the rest of the 21st Century, the projections found in Freight Transportation Forecast are invaluable to decision makers in the board room and the hearing room alike. Having good, accurate data is critical to making sure businesses are making appropriate investments in their companies and that our government is making the proper investments in our nation’s infrastructure.

Over the forecast period, capacity shortfalls will develop. We are starting to see some selected tightness in freight handling capacity, enough to suggest that capacity expansion will be required if the modes are going to be able to handle anticipated growth. American Trucking Associations is the largest national trade association for the trucking industry. Through a federation of 50 affiliated state trucking associations and industry-related conferences and councils, ATA is the voice of the industry America depends on most to move our nation’s freight.

Banking World Meets Small Business

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How is the traditional banking industry keeping up with today’s constantly changing technology landscape? Not very well!

Banks are facing challenges in several areas, but there are four that stand out in today’s market.

The top 4 challenges facing banks and financial institutions

  • Not making enough money. Despite all the headlines about banking profitability, banks and financial institutions still are not making enough return on investment, or the return on equity, that shareholders require.
  • Consumer expectations. These days it’s all about the customer experience, and many banks are feeling pressure because they are not delivering the level of service that consumers are demanding, especially regarding technology.
  • Increasing competition from financial technology companies. Financial technology (FinTech) companies are usually start-up companies based on using software to provide financial services. The increasing popularity of FinTech companies is disrupting the way traditional banking has been done. This creates a big challenge for traditional banks because they are not able to adjust quickly to the changes – not just in technology, but also in operations, culture, and other facets of the industry.
  • Regulatory pressure. Regulatory requirements continue to increase, and banks need to spend a large part of their discretionary budget on being compliant, and on building systems and processes to keep up with the escalating requirements.

These challenges continue to escalate, so traditional banks need to constantly evaluate and improve their operations to keep up with the fast pace of change in the banking and financial industry today.

What are the banks doing to help support and keep up with the technology companies in which are now in the alternative lending space such as Ondeck Capital?

A combination of changes, including: rising interest rates, a less zealous regulatory environment, tax cuts, and overall optimism among business owners will provide a much-needed profit boost for banks.

This in turn will help offset rapidly rising technology expenses and enable banks to accelerate transformative digitization of platforms and processes.

In addition, significant advisory opportunities will benefit those bankers bold enough to help clients navigate these changes in 2017.

Now the good news for small business owners out there is a clear majority of employers feel good about the growth in the coming years.

Small businesses—which are defined as having 500 or fewer employees—are the bedrock of the nation’s economy, with small businesses accounting for 54 percent of all U.S. sales and 55 percent of all jobs, according to the Small Business Administration.

The NFIB survey, which includes responses from 619 small businesses, asked companies how they feel about 10 factors related to overall optimism. Key takeaways from the survey include:

  • Fifty percent of small business owners said they anticipate business conditions to improve over the next six months.
  • Fifty-one percent of survey respondents reported they were hiring or trying to hire new employees.
  • Sixteen percent of small business owners said they planned to create new jobs.

Key to growth for small business owners is simple, hire the right people! Sound simple enough?

Well here is a strong way to start acquiring the right individuals to help growth and retention- Good Benefits Key to Hiring Effectively

  • Although the overall outlook of small business owners is positive, they also identified areas that inhibit growth.
  • Specifically, 8 percent of small business owners responded that the cost or availability of insurance was the “single most important problem” confronting their business.
  • When companies turn their eye toward growth, they need to attract new talent while ensuring current employees remain confident and happy about their jobs. One of the best ways for employers to maintain the balance between growth and employee retention is to offer good benefits package

Overcoming small business challenges

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6 of the biggest small business challenges And how to overcome them

Times are tough for small businesses in particular, who are facing issues that are unique to their situation in an economy that still certainly looks and feels as if it’s suffering a recession. There are many key small business challenges which recur over and over in business forums as major problem areas.

As every small business knows, the reality is that there are dozens of issues out there – however, we’ve had a look at six of those you can take definite action on and set out ways to conquer them. Let’s get to work!

1. Cash Flow Issues

Money problems in their various forms are top of most lists of company woes, and for small businesses the major worries are clients stalling payments, unexpected outgoings, and outstanding bills that won’t wait to be paid.

There are some tried and tested money management tools that can help you to manage cashflow, multi-talented apps that can create budgets, calculate VAT, KPI’s, automate bill payments, alert you to unusual outgoings and provide a free credit score.

2. Tiredness

It’s tempting to try to do everything if you’re a small business owner, and long hours add pressure. Fatigue, one of the most commonly overlooked small business challenges, can leave you disorganized, forgetful and cranky, not paying as much attention to clients as you should, and making mistakes. Business owners must pace themselves, which includes embracing strategic delegation, something that for any highly motivated individual isn’t an easy ask.

Start by identifying business elements that don’t require your expertise, such as mailing, and take on an assistant, even part-time, to help out – after all, it’s an investment that frees you up to do what you do best!

You could also consider delegating tasks that are outside your skillset to specialists, such as accountants or legal experts – the results will likely be more professional and can save you endless headaches.

Get into the habit of segmenting your day – analyses when and how you work best, the time you’d like to put into leisure or family, and create schedules that identify key activities and how long they’re likely to take.

3. Finding and Retaining Profitable Customers

There is a business adage that you need customers with a problem only you can solve, and it’s for you to identify that unique selling point and communicate it clearly to your would-be customers.

You can start by researching your customer base, and identifying the characteristics of your existing best customers (those with the highest volume of sales, and the most repeat custom). Make sure you integrate into this analysis any costs associated with customers, so you have a clear view of their net value to you.

Once you’ve done this you can focus your energies on attracting new clients from your most profitable segment, carefully differentiating your offer to ensure it appeals directly to this type of customer.

To understand what customers, want, you can ask for feedback from current best clients, which also counts as part of your follow-up engagement – another ‘must do’ when you’re looking at keeping valued partners. Find out what forums or other types of social media these customers use, and make sure you’re in there and taking notes.

4. Motivating Employees

Employee buy-in is very important for small businesses, as there tend to be fewer of them and apathy has a greater impact. There’s a real need to understand what employees want (other than a million-pound paycheck), and there are a few possibilities to boost employee engagement for when this isn’t an option.

Ensuring employees are happy and productive means communicating clearly, and being approachable. Good companies foster a relaxed atmosphere where staff feel able to talk to management. Perks like free tea and coffee, decompression areas, gaming areas and staff holiday parties cost relatively little and can really help create a great and healthy work environment.

You should also ask for employee feedback on their needs – this is not an option, it’s a must. Too many businesses don’t look at what their employees want, assume everything is fine, then wonder why they have a high staff turnover. Don’t let this common small business problem sneak up on you too.

5. Having Too Many Overheads

Overheads are one of the biggest small business challenges, and excessive overheads have driven many otherwise good companies to the wall.

Resolving them involves paying close attention to what customers want and providing products or services sharply tailored to suit. This means working out what customers need and trimming back gold plating or unnecessary services, or elements of products that they won’t use or aren’t interested in. Analyzing your transactions and asking existing customers what they want is helpful.

Where you add value, make sure that it doesn’t increase overheads (for example through well-judged deals on less-popular products, or other offers that benefit both

you and the customer). And don’t forget to ask yourself hard questions, such as whether you need that new car or printer, or whether it’s just for show…

6. Staying Current

Small business owners can be so busy they forget to keep up with what’s current in their sector. It takes so much time just to keep on top of the work that blue-sky thinking can seem an unnecessary burden. Nevertheless, you need to keep up.

When you’re scheduling your week, don’t forget to allocate time to track competitors and undertake awareness-raising activities such as reading (or writing) blog posts.

If you can schedule days out to go to sector conferences and exhibitions, the payback in terms of contacts and potential sales can be massive. Research events thoroughly to make sure that their target audience is precisely your target client group. If an event is important, you could also investigate becoming a speaker, positioning yourself as a thought leader among your peers.

Conclusion

Overcoming the main small business challenges involves many key actions:

  1. Use software to manage your cashflow and keep money rolling in
  2. Delegate, automate, and set aside time for yourself
  3. Target your most profitable customers to maximize your returns
  4. Work hard to create employee satisfaction
  5. Ruthlessly cut back your overheads
  6. Keep your finger firmly on the pulse of your sector

With forethought and tenacity, there’s no issue that can’t be overcome. As a small business entrepreneur, you already have these skills in abundance, and applying them to boost your business should come naturally.

Best Small Business Loans for Bad Credit of 2017

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If you have poor to fair credit, which is any personal credit score below 630, you’re often out of luck when it comes to getting loans from traditional lenders. However, many alternative sources such as Premier Business Lending and nonprofit lenders believe that credit scores are not always the most important factor to consider, and they have stepped in to fill this funding gap.

Small business owners frequently have trouble getting funds from traditional lenders because they often cannot meet the strict requirements. Small business owners with bad credit face even more obstacles when getting financing, even from some alternative lenders. If you are able to secure a loan, you’ll typically see much higher APRs and fees. It’s important for borrowers to pay attention to rates, fees and terms when evaluating loan options for their business. Certain lenders will also require collateral or personal guarantees to secure loans. Premier Business Lending has several options from a product standpoint in order to help todays small business owners. Before you agree to accept funds from a lender, be sure that you understand the terms and risks associated with the offer.

The best way to take advantage of a business loan if you have bad credit is to have a strong business plan with clear goals. You should also be making every effort to repair your bad credit, which can include paying your bills on time, cutting costs and reducing credit card usage. You can check your credit report for free once a year, so keep track of the progress you are making. It can take years to fix a damaged credit score, but actively taking steps toward improvement will benefit you and your business in the long-run.

Besides traditional term loans and lines of credit, small business owners with bad credit should also consider other ways of getting funds such as secured small business credit cards, invoice factoring, merchant cash advances, personal loans and business grants.

Indeed, there are reasons for continued optimism for small business owners in the new year:

1) Although rates went up, the increase was small, which is good news for borrowers seeking capital. The hike was something for credibility, since they signaled a change for months, rather than actual impact. Lenders are showing signs of opening up the purse strings. The flow of capital is the life blood of small business. Big banks and institutional lenders are approving higher percentages of loan applications, and smaller banks are granting about half of the requests.

2) While the Fed signaled, it would raise rates in 2017, the amounts will likely again be small. It is better than being overaggressive, and the rest of the world’s economy is not growing. Incremental increases give the Fed the ability to measure impacts.

There has been an influx in equipment leasing we have seen in the first quarter of 2017 which shows economic structure and balance. Rather it is a short term working capital loan, a bridge loan or an equipment purchase Premier Business Lending has shown the ability to help guide business owners through the sometimes-confusing financing industry. This is one of the key principles in which the company was founded, truly being an educational resource to business owners.

EQUIPMENT LENDING RESURGENCE

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EQUIPMENT LENDING RESURGENCE

Starts with Sales

From a lending industry standpoint, inside sales is growing for several reasons including supply and demand. The availability of experienced lending and commercial finance sales talent has been strained over the last several years. Lenders seeking to grow through hiring the conventional sales person with a “book of business” has never been more difficult. Growing new originations through an inside sales model is providing a cost-effective and available alternative that is working—and as we will see—working better than most people even realize.

Another key reason for the surge is cost and efficiency. From a pure cost standpoint and on a productivity basis, a well-run inside sales effort is an extremely cost-effective way to scale a sales force. The cost of talent and the cost of a customer sale can be a fraction of the cost of other methods when inside sales is working.

Premier Business Lending has notice the management of the sales team is also easier and more measurable in an inside sales paradigm. Managing a remote sales team has clear logistical challenges and running an inside sales team involves a much more efficient management platform and better training environment. Run right, inside sales as a strategy can be truly transformational. A manager’s ability to track key performance indicators— including calls made, call connects and talk-time—is powerful. The environment of a scaled inside sales floor provides real-time training and creates a dynamic work environment more suited to the development and retention of talent than a single remote sales person working out of a home office.

Breaking down Equipment Lending By State

The vast majority of states fall under $25 billion dollars of equipment financing. States like California, Texas and New York dramatically outstrip the rest of the country, with $104 billion, $90 billion and $53 billion dollars respectively. These same three states held the top three positions in 2011 as well, indicating the economic concentration of the market. In terms of growth, however, Alabama grew at a 9% CAGR, more than any other state between 2011 and 2016 (Figure 12). Other high growth states are Texas, Arkansas, West Virginia, and Montana. This is vastly different from the growth recorded between 2007 and 2011, where the Dakotas, West Virginia and Oregon were growing at well above the national average (Figure 12). Average growth has jumped considerably. Between 2007 and 2011, 27 states had negative compound annual growth rates (Figure 11). This year, there are only six (Nebraska, North Dakota, Wyoming, Iowa, Alaska and South Dakota). The collapse in oil prices, along with low agricultural commodity prices, have been the biggest factors impacting these states. South Dakota, which has the largest contraction in financing growth at -7.8% CAGR since 2011, is heavily reliant on agriculture, which is volatile due to highly variant weather conditions and recent low commodity prices. While manufacturing remains strong, the market for equipment financing is suffering due to subdued construction gains and a depressed agricultural market. Early in the growth period, states like North Dakota and Alaska were experiencing an oil boom. The Bakken shale formation in the northwest corner of North Dakota saw high rates of economic activity, nearly tripling oil production in the region since 2005. The plummeting price of oil, however, has dried up most of the opportunities in the area. Since 2011, the by-state growth as switched dramatically. Alaska’s heavy dependence on the oil sector has caused small but persistent employment losses. The state government depends on oil revenues to fund 90 percent of its revenues, which means public sector investment is also down with the price of crude. Large oil exploration projects are ready to move forward, once there is a rebound in oil and gas prices. Wyoming’s oil sector has similarly bottomed out, which has caused contractions in the financing market. Environmental concerns will restrain new exploration and demand for Wyoming’s energy resources, which are primarily in the form of coal reserves. Wyoming governor Matt Mead is encouraging technology sector growth in the state, which may have a future positive impact on financing in Wyoming. Texas, a large energy producer in the United States, is still experiencing higher growth. It is likely that this financing growth will continue, as the repeal of the crude export ban will spur expansion and technological innovations continue to increase the efficiency of extraction. Currently, its hospitality, business services, health, and education sectors continue to grow payrolls, which is good news for the financing market. Financing activity in Alabama has been helped by the increase in business activity, as manufacturers like Remington Arms and Polaris have opened factories in the past few years. This expansion in manufacturing investment is likely the root of the Alabama financing market’s 8.9 percent compound annual growth rate between 2011 and 2016.

Looking forward, the equipment finance market is poised for a period of modest, but steady growth. 2016 has been a year of subdued growth, but financing activity has outperformed overall investment activity. Banks continue to hold the largest share of the market, although Captives and Independents have been gaining share and pushing the market in new directions. Interviews with executives in the equipment leasing and finance industry identified increased demand for managed solutions and fintech offerings as potential drivers of growth in the market. Despite low financing costs, investment in new equipment in software has been held back by excess global capacity, low commodity prices, a strong dollar, and sluggish export markets. IHS Market expects public and private investment in equipment and software to finish 2016 at 0.5% annual growth. Spending on equipment is forecast to improve in 2017 and 2018 as the drags from the stronger dollar and low energy prices dissipate and companies invest at rates consistent with an economy growing at a 2-3% rate. Public and private investment in equipment and software is expected to expand by 3.3% in 2017, and accelerate to 5.0% growth in 2018. Increased competition, though beneficial from a lessee’s perspective is putting significant pressure on profit margins. According to the 2016 SEFA, respondents indicated increasing cost of funds over the past two years, driving down pre-tax spreads. With abundant liquidity in the market, and limited growth in new equipment investment, competition for new business is fierce. An improving economy and increased investment in 2017 and 2018, should help to ease some of the pressure on margins

3 Strategies for Getting Into Lending Shape

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Convincing a lender of your need and viability as a business can often be the biggest hurdle

There comes a time for virtually every small business when the need to secure outside financing arises. Whether it’s to fund day-to-day operations, invest in new equipment and inventory, or simply have enough cash on hand to get through slower seasons, many business owners rely on outside financing.

But while funding opportunities abound, convincing a lender of your need and viability as a business can often be the biggest hurdle. It’s a stressful, complex, time-consuming process. Here are three categories a small business owner should keep in mind in order to get in and stay in lending shape and increase your chance of approval.

1. Before applying keep a clean house.

Before you ever need to apply for financing — whether it’s through a traditional bank loan or an option from alternative lenders such as Alternative Loans, lines of credit, bridge loans or a SBA Loan — there are actions you can take to prepare.

A lender will look at four primary factors to determine your eligibility. In order of importance, they include cash flow, time in business, credit score and collateral.

Cash flow: It may go without saying, but every business should ensure its books are accurate and updated.

In addition, lenders primarily underwrite by looking at the inflows and outflows of your business’s bank account. Key metrics that a lender will look at are average daily balance (the higher, the better), volume of deposits and total number of non-sufficient funds (NSF).

Time in business: Much like credit, the longer you can demonstrate a track record of your time in business, the better. It’s critical your business is registered locally and your nine-digit tax information is registered appropriately.

Credit score: Your personal record of financial management is just as important as your business’s. After all, it’s indicative of overall management and attention to detail. Not sure what your credit score is?

Collateral: Assets are crucial when it comes to securing financing because the lender needs reassurance that there’s a way to recoup costs if the loan defaults. Be sure to document all equipment, property and anything that could qualify as an asset under management, along with the associated value as each asset is added to the business.

If you can check all four boxes, you’ll have the best chance at getting the right loan. Conversely, if you have zero boxes checked, you’re unlikely to be approved. If you happen to only have one of the four, there might be an option, but with a higher interest rate or less than favorable payment terms increasing your cost of acquiring the capital you need.

2. During the process leave no stone unturned.

Once it’s time to apply, get your ducks in a row. Lenders will review your application with a fine-toothed comb, looking for discrepancies, omissions, and any reason to deny your request. To improve your chances of securing financing — and doing so quickly — there are some items you should expect to provide.

Bank statements: Be ready to provide a minimum of three to six months of bank statements, but note that your profit and/or loss over the last two years are usually the most relevant metrics. Be sure you can provide detailed information for that period of time. Without it, lenders can’t properly assess your business and need for financing.

Tax returns: Depending on the loan product, there’s a good chance lenders may want to see tax returns over the past two years. Have those on hand in both printed and digital copies when possible.

Current debts and credit: You’ll also be expected to provide information on all debt such as leases, liens and credit adjustments. For all property expenses like mortgages, be sure this information is current and on-hand.

For further background, there’s a chance the lender will conduct interviews with your coworkers or landlord, so prepare all your associates and contacts for a potential call.

3. Getting the “right” financing for you.

At the end of the day, your goal is to secure financing and affiliated terms that are right for your business right now. Remember, a “good” loan depends on the intended need.

With all the options, available and constant changes to the lending space, many business owners skip over some crucial details and believe the lowest rate is the best loan, but that’s not always the case. The best loan could be the largest loan size, longest repayment terms, fastest to fund and arrive in your bank account, or the lowest payback amount.

In reality, it depends on how soon you need the loan, how much you can afford to pay back, the duration of time you need the loan for and how much effort is needed to acquire the loan. Ultimately, it boils down to whether the cost associated with acquiring financing will help grow your business in a way you wouldn’t be able to otherwise.

By determining your financing needs and cost you’re willing to absorb to grow, you’ll have a better idea of the type of financing and terms you’re willing to accept. At every stage of growth in your business, be sure to stay in lending shape by dotting your i’s and crossing your t’s along the way so nothing can slow you down.

Premier Business Lending – A 2016 Leader in Business Loans

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Premier Business Lending wraps up inaugural year as a leader in the small business lending space in El Dorado Hills California.

Premier Business Lending had a strong start to 2016 while moving operations from Southern California to the quite but flourishing community of El Dorado Hills California. Premier specializes in small business lending and cultivating long standing partnerships with today’s small business owner. Chris Wilcox, Managing Partner with Premier Business Lending said “Our goal is to become a true turn key financial company for medium to small business in the US. Today’s financial marketplace has many loan options available for business owners however it is not always a simple decision for these owners. They need guidance from a professional that will put their best interest first. This is one of the principles in which Premier was founded.”
Though Premier Business Lending is finishing its true first year in Business, the experience of professionals in which work within Premier is much to be appreciated. Eric Jenkins, Senior Managing Partner has been in the financial space for over 20 years. Eric and Chris have been working with one another for over a decade with many successful ventures created along the way. Together they decided to create a company within a market that is not only flourishing but needs capable leadership.

Premier Business Lending’s Core products are Equipment financing and leasing, Alternative Financing, SBA products, Franchise Financing and Term Loans. Premier also has established credible partnerships with several of the industry leading Vendors. These Vendors have confidence knowing that if they need Premiers help in securing financing for their customers, they are going to receive that help along with A rated service and competitive pricing.
Chris Wilcox says “The bank partnerships we have created with Premier has really helped set us apart, we are able to pre-underwrite, review in credit and then be sure we have the proper product for our customer all while getting done 2-8 days quicker than a traditional bank.”

What does 2017 have in store for the new company on the block, Premier Business Lending? Expansion into a larger facility for one. Also, while Premier had a strong 2016 with over $10 million in funding’s, Premier is looking to triple that number in 2017. Mr. Jenkins stated “that most broker entities steer away from providing actual retail locations in which customers can come in and meet face to face”. Premier encourages that and is looking to have locations in which we offer just that. Premier will offer all local business owners and vendors a bank like experience where you can sit down with a finance consultant in person to discuss their goals.
In a sometimes crowded and confusing financial industry, it looks as though Premier Business Lending is one of the good guys and are here to stay!