My company, Huntington Coast Capital, is a capital markets advisory firm established in 2010. While our focus has traditionally been trade finance for manufacturers, wholesalers and service companies, we have experienced an inflow of restaurant and bar owners looking to expand their operations.

In brief, there is a government sponsored loan program being offered currently at 6% APR (tied to Prime) that can be used for working capital and/or equipment purchases. It has been designed to stimulate the economy and get capital in the hands of business owners looking for funds up to $150,000.

General program details include: 10-year amortization on the loan, no prepayment penalty, business can’t have any liens, suits or judgments against it, no bankruptcy in the past three years, must be in business for over two years, and the owner(s) must have decent personal credit (above 670 FICO).

If you are approved for the full $150,000, your monthly payment is around $1,600 including principle and interest. This is by far the most cost effect product on the market at this loan size.

Think this product could bring value to your business? Inquire here and let’s discuss further.

To you success!

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

Blog articles discussing factoring companies, factoring loans, invoice factoring and all things related.

As a business owner, there are many choices to make on a daily basis. We are constantly looking for ways to work quickly and efficiently. Make the wrong choice, and there will be unpleasant consequences. How many times have we heard someone justify a bad choice by saying, “I had no choice, I had to do it!” The bad choices we make are often a result of procrastination and not taking a proactive approach to important matters.

Wikipedia defines Freedom of Choice as: an individual’s opportunity and autonomy to perform an action selected from at least two available options, unconstrained by external parties.

In general, we like to consult with the experts on big choices. Think about your health. If you were having chronic pain in your back, you would consult a doctor and/or chiropractor to remedy the situation. You likely wouldn’t rely on your own knowledge and experience to self diagnose and treat yourself.

In business, if you were in need of a new supplier for example, you would want to speak to more than one to get a good comparison of product, services, and pricing from the vendors in the marketplace. We are typically not inclined to call one source and depend solely on their advice when it comes to our business and money. It is good business practice to explore the options.

One of the biggest choices in business is selecting the right funding partner. An ideal partner in business is flexible, forward-thinking, entrepreneurial, and responsive. Just as with two individuals, their has to be chemistry to make a relationship work. Your partner has to understand you and work with you, believe in your vision and support you. This is no different with a funding partner.

Huntington Coast Capital provides more than access to the cash you need to fill purchase orders and meet working capital needs. We bring together the right funding partners for your business. There are many capital sources out there that provide cash to companies large and small. As a business owner, you need to find the right one that will support and not restrict your business growth. You want to select a partner that is with you for the long-haul – “the right lender” not the “right now” lender if you will.

If your company could benefit from the right funding partner to assist you in attaining your business goals, contact us. We consult with business owners on a daily basis and can navigate a path to the perfect lender for your business.

To your success!

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

Blog articles discussing factoring companies, factoring loans, invoice factoring and all things related.

Our family went to Disneyland yesterday and it was as busy as you would expect on a holiday weekend. I thought we had the right idea going during the week and then it dawned on me that some kids (like my own) are off this week for the Easter/Spring break. Needless to say, we spent 10 hours there and got on a handful of rides.

What does this have to do with factoring companies or using a capital markets adviser? Glad you asked!

During our time at Disneyland, standing in lines for hours upon hours, shuffling through the mass of people going here and there, and occasionally being stopped by a Disney character looking for a picture with my kids, I had a realization. There are two things you need at Disneyland to maximize your time – a map and a Fast Pass.

A map is self explanatory. You need one to show you where the attractions and places to eat are and it can be used to plan your path through the park. Without a map, you spend a lot of time walking around in the hopes you bump into something of interest to you. This is not only the least efficient way of maximizing your time, but also exhausting! Kind of like looking for the right financing partner for your business, I thought.

When our small business owners contact us to discuss financing, they want a map, someone that knows the way to get them where they want to go. Sure they could explore on their own and eventually find suitable solutions, but rarely do they have time for that. We all like the idea of employing an expert to get us the results we want as quickly as possible. Additionally, self searching for financing options means doing a Google search for financing companies. This only shows you who has paid the most for ad space and search results, and not necessarily you who will deliver the best fit for your business.

About the Fast Pass. We also had our 13-year old nephew with us. If you are looking for an expert on Disneyland, I suggest inquiring with a 13-year old, any 13-year old will do. As we were standing in line making small talk with our line buddies and grateful when our line moved us into the shade, he said, “hey uncle Patrick, do you have a Fast Pass?” To which I replied, “what’s that?” A Fast Pass is basically a line pass that they hand out on a first come, first serve basis. You go to the attraction you want, request one, and they give you a pass and a time slot when to return to go to the front of the line. It’s a huge time saver and allows you to maximize your time versus spending idle hours standing in line. A brilliant idea! I later found out that you can purchase these Fast Pass treasures at the ticket booth. I swore to buy the Fast Pass from now on when we go to Disneyland. What a time saver!

By now, you can see where this is going. When our clients are looking for financing they want objective advice on what the best solution is for their business. Their desire is to get a “good deal” and save time, money and effort in the process. They are not looking to find this perfect partner through trial and error, but rather take a rifle approach and zoom in on the target. This is our greatest value.

Huntington Coast Capital takes the time, frustration and effort out of selecting the right funding partner for your business and manages it for you. Why walk with the herd down the path everyone is taking when you can take the short cut and get to the source quickly and easily?

Allow us to bring value to your business by partnering you up with the right funding source. We have our finger on the pulse of the small business lending market and bring that value to our clients on a daily basis. We look forward to hearing from you.

To your success!

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

Blog articles discussing factoring companies, factoring loans, invoice factoring and all things related.

“Show Me the Car Fax.” “Compare and Save.” “We Shop So You Don’t Have To.”

These are some popular tag lines of some fairly large companies with a mission to provide their clients with an unbiased opinion on the options available for their specific needs. The rise of companies offering transparent explanations to consumers looking for goods and services is in direct response to consumers getting taken advantage of and treated unfairly by the sales person.

In my opinion, nothing stoked the desire for fair treatment more than the car salesman. As a young man prior to my experience in the industry, I wasn’t knowledgeable in finance and couldn’t even calculate an interest rate, let alone capital cost, lease term, residual value, equity, etc. Further, there was no one there to assist you if you needed it. Oh wait, the “assistance” came from the car salesman. After all, he worked at the dealership, had knowledge of the various automobiles you were interested in and had your best interest in mind, right??? Well, he/she had someone’s interest in mind, but whose interest is debatable.

As small business owners, we have an idea, connections, product knowledge or experience in a certain area that we use to bring a product or service to market. These strengths rarely include a complete understanding of the financing options available to us when looking to grow our businesses. Most small business owners we speak with have wonderful ideas and they just need the capital to set the plan in motion or take an already flourishing business to the next level. Here is where it pays to have someone on your side.

Factoring companies provide great value in the capital they provide to small business owners. They too are often smaller companies looking to make a return on their “investment.” We certainly can’t fault them for being in business for a profit, we all are. Additionally, they are lending money in scenarios that the banks run from and deserve a fair and adequate return.

This being said, it’s nice to have a selection when making this very important decision for your company. At Huntington Coast Capital, we provide the selection of funding companies appropriate for your request without preference. The choice is yours. Our service is bringing you the options and allowing you the freedom of choice having all the facts in front of you. We believe this is the best way to make any decision, especially choosing the right funding partner.

If your business could benefit from additional capital and you would rather deal with trusted advisers in the industry, give us a call.

To your success!

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

Blog articles discussing factoring companies, factoring loans, invoice factoring and all things related.

I read an article about business owner confidence in the Orange County Register and wanted to share it here. Not many people read the paper nowadays so I wanted to write it down for my digital friends. Insightful article that points to slightly higher confidence and moderate growth. Enjoy.

Small Business Inspires Hope for the Economy

Small business is a critical slice of the US economy. Our tally of business patterns attempts to quantify the niche’s condition.

Confidence: The National Federation of Independent Business’ monthly member survey finds antsy owners.

The survey found March’s confidence count as a slight improvement over February, when the score dipped from January. Nevertheless, the index remains in a narrow range that would have been seen as recessionary before the 2008 financial crisis.

“We can only be encouraged that the economy is at least crawling forward and not heading in reverse”, said NFIB chief economist, Bill Dunkelberg.

Hiring: Small business owners are in a hiring mood.

Intuit’s Small Business Index gathers financial data from users of it’s bookkeeping software with 20 or fewer employees. This index shows small business employment in March back at a five-year high and in that half-decade hourly salaries are up 10%.

One worrisome note: The index has barely budged in the past year.

Bottom Lines: Owners say their financial outlook is sunnier.

The Wells Fargo/Gallup Index Survey gives a glimpse into the outlook for the books, with the first quarter polling finding owners saying this about the next 12 months:

– 66 percent described their financial situation looking very good or somewhat good – the most optimism since the 3rd quarter 2008. Note that 82 percent of respondents were this buoyant in pre-recession 2007.

– 52 percent said cash flow should be very good or somewhat good – the upbeat outlook since first quarter 2008.

– 48 percent see revenue up a lot or a little – the best forecast since second quarter 2012.

Credit: There’s actually money for people who need it.

The Experian/Moody’s Analytics Small Business Credit Index measures lending and loan payment conditions for employers with less than 100 workers. This benchmark rose for 2013’s fourth quarter to hit the highest level in its four-year history. Pushing the index higher was growing use of credit by owners; on the negative side was a slight tick up in 30-day loan delinquencies.

The report concludes that “this is a solid indication that small businesses are finally reaping some of the benefits of the nearly five-year-old US recovery.”

Blog articles discussing factoring companies, factoring loans, invoice factoring and all things related.

Lately, we have been running into a number of clients that are in a situation where they need credit from their supplier in order to fulfill an order and make a sale. These clients are either brand new companies with no historical financial information or established businesses that, for whatever reason, are not receiving credit from their suppliers.

Most suppliers ask for payment prior to shipment. They want their money up front before delivering the goods and often require a 50% deposit at the time of the order. While this makes reasonable sense, it often causes heartache when you have finally made that big sale and now can’t afford to fulfill it. Few things are more frustrating to a growing business!

Factoring companies have devised a way to meet these needs and it is not through invoice factoring in every case. Besides, if you don’t have accounts receivable, you can’t factor your invoices and receive money to fulfill orders.

How have factoring companies done this? The answer is a clever way that gives the lender comfort, the clients sales and requires some cooperation from the supplier. The secret is through a Vendor Assurance or Tri-Party Arrangement with the supplier.

For example, we are now talking to a start up company in the oil and gas industry. While the owners have experience in the industry with great customer contacts and supplier relations, they do not currently have any sales. This rules out invoice factoring or any other account receivable based financing for that matter.

What they do have is a firm purchase order from a financially solid customer. If they are able to fulfill this order, they are assured that more will be behind it. When I say a “firm” purchase order, I mean and order that will result in $1,600,000 in sales for the company! However, the anxiety comes in when they realize that they will have to pay their supplier approximately $800,000 to process the order.

So, how do I get credit from my suppliers? Let’s get back to the Vendor Assurance.

A Vendor Assurance or Tri-Party Agreement is an agreement between the supplier, the company requesting credit and the lender. It is a 3-4 page legal document that guarantees payment to the supplier. This is provided that the goods are received by the customer without dispute.

The benefits to the supplier are that they are guaranteed payment if the goods are delivered as agreed, they can safely extend terms to their customers and increase their sales, and they have the assurance from the lender that they will be paid. The benefits to our clients are that they now have access to the goods they need to fulfill the order and they do not have to cover the cost upfront. This is huge! The old expression that “cash is king” is true, but where cash isn’t possible this credit might be.

Factoring companies like this because they are shifting the risk of payment to the supplier by not having to extend hard capital to fulfill an order. By financing the cost of goods at the time of receipt by the end user, they are effectively using invoice factoring to fund the working capital need.

Of course, all of this is reliant on the suppliers cooperation, but you would be surprised how many suppliers we talk to that are open to it. Most see that extending credit to their customer will benefit them in the form of increased sales too. If the supplier is on board with it, everybody wins.

If your business could use some creative financing to grow, give us a call. We provide unbiased consultation and a menu of options to choose from when selecting the right lender for your business.

To your success!

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

Blog articles discussing factoring companies, factoring loans, invoice factoring and all things related.

There is a lot of jargon in the finance world. Some of it sounds confusing at first glance, but upon a closer look, is readily understood. One example of this is what is referred to as a “unitranche” loan. I have included a link to an article that does a great job of explaining what this is in plain and simple English.

A unitranche loan is a term loan that combines both senior and junior components in a single credit facility. Unitranche loans are typically made by a small syndicate of lenders and is documented in a single set of loan documents. Pursuant to these documents, the borrower agrees to pay a blended interest rate on the entire principal amount of the unitranche loan and grants a single lien in favor of the administrative or collateral agent to secure the payment and performance of the entire unitranche loan.

See more http://www.abladvisor.com/articles/4212/unitranche-loans-somewhat-complex-yet-streamlined-and-efficient.

If your business could benefit from additional capital to expand your operations, we would like to speak with you.

To your success!

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