16Jul By Patrick

Purchase Order Financing For PPE Products

Huntington Coast Capital has extended its service in the Purchase Order Financing For PPE Products space. We have partnered with a group that has a warehouse on the west coast. The benefit is that they have inventory available either on site or through their supplier network. The result is a faster response to much needed materials for hospital groups and government entities.

PPE Products remain in high demand. Resulting in a trend for faster delivery times. In response to this need, Huntington Coast Capital has access to products through our domestic partners. Favorable terms from our foreign partners continue to be available.

A sample list of current inventory is listed below. Are you in the fight against COVID-19? Huntington Coast Capital is here to help!

N95: – all masks on CDC list / NIOSH certified

3M 1860 surgical (from authorized distributor)
3M 8210
Kimberly Clark (distributor relationship)
BYD (allocation and some US inventory)
Giko 1200 NIOSH available US inventory
Giko 1400 surgical available US inventory
Powecom (allocation and some US inventory)

KN95: – all masks on FDA current list

Several brands as available

3-ply: several brands available

Nitrile gloves: (4ml and 6ml)

Regular shipments supporting continuing orders from China

Regular shipments from Vietnam / Malaysia / Thailand (soon)

Synmax gloves: (synthetic vinyl)

3.3ml excellent for non-medical uses

Gowns: isolation (level 1 – 4)

Non sterile

Sterile

Medical / Surgical

Waterproof

Hand Sanitizer:

LA manufacturer FDA compliant 40oz bottles through tanker loads

Covid 19 antibody test (South Korea)

Call us to discuss purchase order financing for PPE products! 714-719-8966.

12Jun By Patrick

Purchase Order Financing For PPE Products

Huntington Coast Capital is continuing its fight against the COVID-19 pandemic by continuing to secure purchase order financing for PPE products. Over the past few months we have facilitated millions of dollars in purchase order financing for our clients in the PPE space. According to UNICEF the demand for PPE products will continue for the foreseeable future and this means financing required to fill orders will continue to be in demand.

Many lenders in the PPE financing space have pulled back their purchase order financing due to problems experienced with some of the orders. Orders were being shipped late or incomplete and sometimes both, due to the huge demand. Huntington Coast Capital’s fund partner has an approved list of suppliers in China. They have worked with and established strong business relations. This partnership has greatly reduced supplier performance risk. By controlling each step in the supply chain to the best of their ability, they are mitigating the risks associated with supplier performance and quality.

Where do we go from here? Huntington Coast Capital will be partnering with another group to deliver PPE products directly within the next few weeks. The warehouse space will be located domestically and contain a broad range of PPE products for sale. This additional step will eliminate the supplier risk entirely and allow our clients a faster turn around for those urgent orders. We look forward to announcing the opening of this facility. The warehouse space has been secured and the products are on their way!

If you are looking for purchase order financing for PPE products, we would like to speak with you.

Patrick Zazueta
Huntington Coast Capital, Inc.
714.719.8966

22AprMay 3, 2020 By Patrick

Purchase Order Financing For PPE

Huntington Coast Capital is proud to have been contributing in the fight against the COVID-19 crisis by providing purchase order financing for PPE products. Our asset based loan programs have secured purchase order financing for much needed supplies. These items include face masks, gowns, gloves, shoe covers and face shields.

Large purchase orders from counties, health organizations and hospitals from across the country have been filled thanks to the availability of capital in this unprecedented time. Without access to capital, supplies would halt and safety of our healthcare workers on the front lines would be compromised.

Are you an existing supplier of medical supplies in need of purchase order financing for PPE? Are you in need of additional capital to fill orders from your customers?

In this environment, we have seen huge demand because the order sizes are far too large for the average supplier. For instance, we have seen orders for a couple million dollars to over 100 million dollars. We have access to the capital required to fill these purchase orders.

12MarMarch 12, 2020 By Patrick

Asset Based Loans – How To Figure The True Cost

Understanding the cost of an asset based loan when contemplating the business loan options available in the marketplace is critical to making an informed decision. Most all business owners need capital from time to time to meet the needs of a growing business. They self-fund operations for as long as they can and if they hit their growth goals, they often require additional capital to get there.

The problem is that fast growing companies are often not profitable and have little in the way of retained earnings. This due to the fact that every dollar going in to the business is going back out to meet working capital needs. This is where asset based business loans are a dependable source of capital.

However, the analysis is much different. Your typical business loan is an SBA loan with a 10-year amortization and fixed monthly payments. This type of term loan is great for fixed costs and long term assets such as equipment, real estate, etc. But what if your needs are revolving in nature?

For example, our typical client comes to us because he has a big order that they can not fulfill on their own. Here’s a breakdown of a common scenario we secure funding for:

$1,000,000 loan request to cover the cost of goods and pay suppliers
The company has a 30% margin or can make $1,300,000 upon the sale to their customer (if they can get a hold of $1,000,000 to fulfill the order!)
They have a verifiable purchase order from their credit-worthy customer
They are expecting the total business cycle to be 60 days from the time of the order to shipment to the customer to being paid by the customer
Cost of the revolving credit (in this case purchase order financing, a form of asset based lending) is 2% of the loan amount per month
Simple equation: $1,000,000 x 4% equals $40,000 (cost of capital), $1,000,000 carrying a 30% margin equals $300,000 profit
Net profit on the transaction after the funding cost is $300,000 minus $40,000 or $260,000.

The question becomes, would you spend $40,000 to make $260,000? The answer for almost everyone is yes! As seen, figuring the cost of an asset based loan is much different than a typical business loan. The review consists mainly of looking at the return on capital versus “interest rate” which so many people are obsessed with.

We have actually had clients say that this cost of capital is “too expensive” on an annualized basis. If the business loan revolves every 60 days, the cost is $40,000 multiplied by 6 (60 days divided in to 360 days for the year) the cost is $240,000 in annualized capital cost. However, we need to remember the profit the company stands to make with this type of asset based loan. The net profit per turn was $260,000. If we multiply that by 6 we get $1,560,000 income on an annualized basis.

So, the question becomes, would you spend $240,000 to make $1,560,000? The answer is a resounding, YES, of course!

If your business could grow using a creative asset based business loan, we would like to hear from you and discuss the options.

To your success!

Patrick Zazueta | Huntington Coast Capital, Inc.
714-719-8966

27FebMay 3, 2020 By Patrick

Small Business Loans In California

What is the rate for a small business loan in California? “My company is looking for an asset based loan, but we do not want to pay too much!” This is the main concern when searching for a commodity finance product such as a commercial or home mortgage. Let’s face it, if I am refinancing my home mortgage, I do not care about the customer service of the mortgage company because I expect them to competently manage my mortgage needs. Further, I would not pay more for a perceived better customer service experience. My main concern, as with all of us when shopping for a mortgage, is rate.

However, in the asset based loan world, things are much different. For example, as a business owner looking to deliver on a sizeable purchase order you have been pursuing for months, cost is not the primary concern. Availability of cash is. This is because if you fail to deliver on your first purchase order, you will likely never receive another one from the same customer. Your reputation on being able to deliver is what keeps the orders coming in.

We deal with business owners on a daily basis that are under extreme timeline and performance pressure from a customer they have been pursuing for months. Once the opportunity finally comes, they simply must deliver! They view the lending partner as an asset based loan partner versus just a pocketbook. Small business loans in California are much easier to obtain when pursuing an asset based loan versus tradition bank financing.

Our private capital sources need to earn a return that is commensurate with the risk they are taking. It is a return that will both assist the borrower in their growth goals and earn the lender enough return to justify the risk of capital. A flexible asset based loan that allows the borrower a chance to expand their top line revenue where one did not exist before through traditional financing avenues.

So, the rate discussion is obviously something that is covered, but not nearly as important as it is with commodity lending. Loan rates on asset based loans range wildly depending on the asset being financed, industry the company is in and cash flow of the company.

If your business could use a flexible small business loan in California to grow your company and meet your full potential, we would like to speak with you!

To your success!

Patrick Zazueta | Founder
Huntington Coast Capital, Inc.

22FebMay 3, 2020 By Patrick

Small Business Loans In California

Huntington Beach, CA: Running a business is challenging. You have to cover monthly expenses, manage people and inventory, satisfy customers and market and advertise your business. Unfortunately, most businesses fail within 2-3 years opening due to cash constraints. This is partially due to not being able to qualify for a small business loan.

Banks lend to small businesses, but qualifying for such loans is very difficult. You need to have a history of profitable operations, retained earnings and positive working capital. These things sound achievable, but a lot harder than they look.

Luckily, small business loans in California are available to business owners that can not qualify for traditional bank financing. Virtually any asset found on a balance sheet can be used as collateral for a loan. The assets that can secure a small business loan in California are real estate, equipment, inventory and accounts receivable. Also in this group, though not listed on the balance sheet as an asset, are purchase orders.

Working capital lines of credit and term loans are the two types of small business loans in California that are available. Term loans are for fixed assets or long term expenses (think of a loan with monthly payments like a mortgage) and working capital loans are for short term needs to cover the day-to-day operating expenditures (think of a revolving line similar to a credit card, but not as expensive).

Could your business benefit from a revolving line or term loan? We secure small business loans in California and across the country. Give us a call to learn more (844) 239-2632.

19FebFebruary 22, 2020 By Patrick

HCC Launches Separate Operations For Asset Based Loans And Supply Chain Finance

Huntington Coast Capital is proud to announce the launching of two subsidiaries! One dedicated to asset based loans, www.assetbasedloans.fund and the other strictly arranging supply chain financing requests, www.supplychainfinance.finance.

The growth in these two areas of finance made this adjustment a requirement for doing business going forward. The two entities will be fully owned by Huntington Coast Capital. The move was done to better distinguish our product offering. Instead of having one company with many different asset based loan offerings, we decided to break these two off for better clarity of our services among our clients and prospects.

Equipment Finance Quotes, www.equipmentfinancequotes.com, was the first line of business to become its own distinct entity back in February of 2019.

Through our portfolio of companies, we strive to meet the needs of business owners across the country. It is our goal to become the “go to” resource for business owners when looking to obtain and asset based loan in California or anywhere in the United States.

Could you business benefit from an asset based loan? If so, we would love to hear from you! (844) 239-2632

06Feb By Patrick

Purchase Order Financing For The Cannabis Industry

We have seen an increased number of requests for purchase order financing in the Cannabis industry. This typically includes the purchasing of seeds from suppliers. Our clients are either distributors or sell to distributors within the Cannabis industry.

While Cannabis is not Federally regulated, other products within the industry are. For example, the popular CBD supplements in the market today can be financed by a broad base of lenders within our network. CBD products are used for both human and animal treatments. My vet uses CBD when my dog goes in for a grooming. These CBD products are the preferred alternative when calming animals for procedures of all types. People take CBD for general relaxation and pain relief. The organic nature of the product is the main reason it is taking over in popularity from the synthetic options.

The other product in the industry, the Hemp seed, has been legal for many years and has been used to make clothes for decades. It’s durable and organic, making it the preferred choice for some.

It is our opinion that the demand of Hemp and CBD products will continue to increase for the foreseeable future. Huntington Coast Capital wants to be a part of this high growth industry. If your business is in the Cannabis Industry and in need of purchase order financing, we would like to speak with you. We are also able to finance real estate and equipment in the industry. Call us to discuss the options 714-719-8966.

Patrick Zazueta
Huntington Coast Capital, Inc.

08JanJanuary 14, 2020 By Patrick

3 Things Needed To Qualify For An Asset Based Loan.

Huntington Beach, CA – Asset based loans can be made against any asset on a company’s balance sheet. These include accounts receivable, inventory, equipment, real estate and even off balance sheet items like purchase orders. However, simply having the asset is not a guarantee that you will be approved for a loan.

In order to improve your chances of being approved for an asset based loan, you need to have at least two of the three of the following:

Credit
Cash Flow
Collateral

There are different forms of asset based loans and which two hurdles you will need to clear will change depending on the type of loan you are looking for. Let’s take a closer look. The first benchmark in many asset based loan reviews is credit. This refers to both your personal and business credit rating. In general, a credit score of 680 or better is required of your personal credit. Business credit is a little more subjective, but primarily entails your payment history, past judgments and IRS records. The asset based lender will want to know that you are running your company well by paying your suppliers on time, managing your legal recourse exposure and paying your taxes.

In an invoice factoring arrangement, personal credit is not of that much importance. The majority of the credit decision rests on the financial strength of the customers. Because the lender collects all customer payments through a controlled lock box, the lender has more control over the repayment of the loan. The collateral in this case is the invoice itself and the cash flow is also manged through the lock box. Two of the three requirements are met.

In an asset based business loan, personal and business credit along with cash flow are most important in companies with low levels of assets such as staffing companies, law firm and accounting offices. The collateral taken when lending to service companies is covered under a “blanket lien” of all company assets. However, there are not a lot of hard assets owned in a service company. The focus in this case shifts to the personal credit of the owners and how profitable the business is. The more profitable, the higher the cash flow and the more cash available to pay the company’s debts. This said, loaning to service companies sometimes requires that outside collateral be required, such as a lien on a personal residence or investment property, if available.

In summary, if you have the collateral for an asset based loan you need either the cash flow or credit to compliment the loan request to increase the chances of approval. While higher in cost than traditional financing, there are lower barriers to being approved and less financial scrutiny of your business.

If your company could benefit from an asset based loan, we would like to speak with you and bring the best options to the table.

To your success!

Patrick Zazueta
Huntington Coast Capital, Inc.
714-719-8966

27DecDecember 27, 2019 By Patrick

The Difference Between Bank Asset Based Loans And Private Asset Based Loans

Huntington Beach, CA Owning a business takes a lot of cash on hand. Cash to make payroll, pay rent (or a commercial mortgage), purchase supplies, marketing and advertising, etc. Business owners reach out first to the bank they have their business deposits with to see if they can provide them with a loan. Their bank is a good place to start, and if they can qualify, their journey ends there.

Different types of asset based loans.

Asset based loans can be made against any asset seen on a company’s balance sheet. The common assets used as a collateral for a loan are real estate loans, equipment loans, inventory and accounts receivable. Other collateral considered assets by a lender are purchase orders and supply chain funding lines.

Asset Based Loans Obtained From Banks.

Banks provide asset based loans, but have stricter requirements than the private sector. The first difference you will notice is that a bank will most typically require you to open a deposit account with them in exchange for doing the loan. Depending on the size and type of asset based loan, the bank will require you to switch you entire banking relationship over them as a requirement for doing the loan. Switching your banking relationship is no easy or convenient task.

If deposits are not required, that means that the bank will look to fit you in to an SBA loan program. Banks mainly offer term loans under the SBA loan program versus revolving lines of credit. Loans made against accounts receivable, purchase orders or for supply chain funding are not on the menu for most banks.

The preferred type of asset based loan banks like to issue are for real estate and equipment purchases. The range of your required down payment will depend on the type of loan being considered, your business and personal credit and the amount of liquidity you have on hand post purchase. Most banks set their bottom limit at a 680 credit score or better to be considered for an asset based SBA loan.

Private Sector Asset Based Loans.

In the private sector the whole credit picture is also considered, but not scrutinized quite as closely. The main consideration is the asset quality itself. For example, in an accounts receivable loan, the credit quality of customers, average collection days and historical bad debt write offs are of paramount importance. The private lender will look at business and personal credit scores and evaluate the company’s financial position, however they will also listen to the story. Many business owners have lower credit scores because all of their cash has gone in to their business and this sometimes creates issues meeting their obligations on time. The private asset based lender understands that an asset based loan will improve the company’s cash and allow them the growth opportunity they wouldn’t otherwise have without access to capital. This especially true when considering loans to finance purchase orders or establish a supply chain line of credit.

What Asset Based Loan Is Right For Your Business?

Our advice is to always check with your business bank first. They are the ones that have the experience with your business and it’s always prudent to confirm their ability to assist.

The facts are that most business owners do not qualify for bank loans. This is the reason there is a market for the private asset based lender. Private capital can be used as a bridge or as a permanent financing for those that prefer less oversight from their lending partner.

What Value Does Huntington Coast Capital Bring?

In a word, experience. We have decades of experience in the private capital and institutional capital markets. We navigate our clients through the options, saving them time and when finding the right asset based lending partner for their business. If your business could use some additional capital to purchase equipment, real estate or to finance growth opportunities, we would like to speak with you.

Call us to learn more 714-719-8966.