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- Recent Industry News
- Fraud Corner
- IT Corner
On June 6, Philadelphia-based Sovereign Bancorp Inc. acquired Business
Alliance Capital Corp (BACC).
The deal was a stock purchase transaction involving an all-cash consideration. Business Alliance is a Princeton, N.J.-based Company that makes asset-based loans to small and medium-sized businesses with revenues of $1.5 million to $50.0 million and credit needs of $200,000 to $7.5 million. The deal will strengthen Sovereign's asset-based lending position in the Northeast, Southeast and Western United States. Business Alliance's management team will remain with the company.
Rockland Credit Finance has increased its portfolio through the acquisition of the portfolio of Capitol Resource Funding of Alexandria, VA that was in bankruptcy. The portfolio includes clients around the country, such as small manufacturing, distribution and service industries. Approximately 35 clients were acquired. The process was competitive bidding under the control of the bankruptcy court. Rockland also increased its personnel by engaging the portfolio manager and collateral account specialist that worked for Capitol. The portfolio has been completely integrated.
Rockland Credit Finance is based in Owings Mills, Maryland and provides factoring and commercial finance facilities across the USA. It was founded in 2001 by John Fox. | | 
Tim Bruckner has returned to Crestmark Bank to manage a full-service office in Chicago that will provide underwriting and account management services. This significantly expands Crestmark's presence in Chicago, as to date, Crestmark has operated in this market with business development personnel only. Crestmark is in the process of hiring additional credit staff and expects to be fully operational in Chicago by mid August. With these changes, Debbie Sill has been promoted to Region Sales Manager and will be responsible for business development initiatives in Chicago and surrounding areas.
Following the acquisition of Metro Factor Inc.'s business, Greystone Metro Financial, is pleased to announce the addition of J. Dugan Smith as its Chief Executive Officer. Smith is a 25 year financial services industry veteran and will be based at the company's Dallas, Texas headquarters. For further information call 214.363.4557 or 800.327.2274.
Factorhelp offers a complete suite of Investment Banking Services for companies in the Factoring Industry. Call, email, or visit our website today for all of your Capital Raising (debt or equity), M&A and/or portfolio brokerage needs!
Thomas G. Siska, Managing Director,
(847) 498-9136 or tsiska@facorhelp.com. |
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A troubled furniture manufacturer needed special hardwood for a suite of case goods. The supplier sent a whole load, allowing the manufacturer to pick and choose what he wanted and to ship the rest back. The A/R clerk, in order to create shipping documents for the return load, used her canned software program for the shipping list and bill of lading, which created an invoice, all by itself. That invoice went in a batch to the Factor, with supporting shipping documents, which funded without a pre-verification.
Flash forward 60 days. The three largest account debtors are no longer furniture retailers, but wood wholesalers! Client management, in desperation, found that the "accident', not caught by the Factor, was their ticket to make payroll, pay delinquent payroll taxes and suppliers. The Factor had checked out the credit on these customers, but never verified or stopped to wonder what a furniture manufacturer would be selling to a wood supplier. Net loss: $300K.
Lesson to be learned: most frauds start out with a test to see if the Factor is paying attention, even if this example started with an accident. Policies and procedures must be re-evaluated at least annually. | |
Further, most Factors have a stated Policy that all new account debtors with 'significant' balances are to be verified. So it's not just having the right Policies & Procedures that counts. It is just as important that the Factor knows that its staff follows the routine procedures.
Did you know that FactorHelp conducts complete Portfolio and Policy & Procedure reviews? Recently, many Factors have been engaging us to provide not only complete account and legal file reviews, but also policy and procedure benchmarking with respect to their current portfolio composition. Remember, most people try to do what is expected, but somehow always do what is inspected. Additionally, FactorHelp now has expanded expertise and capabilities with the Creditor Services Division of Credit Support International.
Call or email us today to learn more. Jon Eckhouse, Vice President, (972) 231-6572 or jon@factorhelp.com
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 Like many seminal moments in history - there is a before and an after. Likewise, there were the days before PDF and the days after its introduction. The advent of the Portable Document Format (PDF) has ushered in a revolution with uniform document sharing, streamlined printing and advanced security features.
Before PDF technology, files sent to clients, suppliers, vendors, partners and printers often changed, reinterpreted by the receivers personal software, settings, fonts, colors, etc. Now both your internal and external business documents can maintain their integrity from fonts to colors, ensuring a continuity and confidence that your files will look and print just like you intended them to. The benefits of PDF are many:
• Continuity - Documents always look the same, no matter who is receiving them. There is no reinterpretation of the document.
• The New Fax - PDF acts as a color fax that can be simultaneously transmitted to hundreds or thousands of people without having to worry about a single fax line.
• Security - Documents can be encrypted, locked and digitally signed to ensure that official documents have not been altered.
• Navigation - Regardless of their size, PDFs can have links and key searches embedded into them, allowing their readers to easily locate the pertinent passage or chapter for them. An additional application would be a complete encapsulated website that is navigated through PDF links.
• Compression - PDFs are famously well-compressed and can turn a large file into an easily managed small file without loss of document integrity. This is great for email campaigns and web-based downloads.
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• Presentations - Continuity of color and fonts enable PDFs to be used as presentations on any platform, assuring that different audiences see exactly the same thing.
• Magnification - Documents can be enlarged hundreds of times without loss of clarity.
• Global - With its popularity global, PDF documents can be used anywhere in the world without the limitations of technology.
• Exportable - From invoicing out of Excel, presentations, documents to design proofs, PDF enables your company to have a singular, final output of any software. Many additional software suites have PDF export options as well.
The same design savvy that goes into traditional and digital printing goes into PDF design. A smartly designed PDF can make a powerful impact and lasting impression on someone who sees scores, if not hundreds, of bland documents a week. The power of the PDF is truly remarkable and is being utilized by serious businesses across industries, from multi-billion dollar conglomerates to mom & pop shops.
FactorHelp offers best-in-class design and technology tools that will help you stand out from the rest!
Visit our website at factorhelp.com/design to learn about the breadth of our service offering or contact Jon Eckhouse, Vice President, directly at (972) 231-6572 or jon@factorhelp.com.
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Lenders' Podium is pleased to present this popular factoring conference. It's taught by attorney Bob Zadek - recipient of the Commercial Finance Association's "Educator of the Year" award - and one of the leading factoring experts in the US - who represents factors across the country.
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This powerfully presented program provides the opportunity to learn about the most recent and relevant legal issues in today's factoring industry.
Bob Zadek provides valuable, up-to-the-minute legal forms worth several times the fee of this conference! You'll get dozens of practical and proven documents and procedures to replace "borrowed" forms you've tried to adapt to your needs.
To register or to receive a detailed brochure, call us at 888-FIN-WORD (346-9673) or visit us online. Register a month early and save $300.
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