24NovNovember 24, 2022 By Patrick

Benefits of a Small Business Loan | Huntington Coast Capital, Inc.

Perhaps a friend or colleague has advised you to take out a loan for your small business, but you’re still in doubt. After all, you may not want to burden your business with debt. However, the following reasons may convince you to consider a small business loan.

1. Enjoy Flexibility

Loans for small businesses have varying terms and repayment periods that can suit your business needs. You can go for a long-term loan with an extended repayment duration or a short-term loan that has to be repaid after a short time. Your choice will depend on whether the loan is for personal, business, or mixed-use. In some cases, you can even apply for many types of loans.

2. Liability-Free

Generally, business borrowers do not need to have collateral or a specific revenue to apply for a loan. The lack of requirements is an advantage to a small business that just started and has limited income or no assets to put up as collateral. Hence, aspiring business owners can easily enter the corporate world quickly and get their businesses running.

3. Retain Full Ownership

When you get financing from investors or partnerships, you must relinquish a portion of the business. Although the arrangement may be helpful initially, problems may arise as the company expands. You have to consult partners on significant decisions and how the business operates, but a loan allows you to keep full ownership of your business.

4. Improve Business Credit

If you repay the loan on time, you will boost your business’s credit score. A good credit score makes it easier to get more loans at favorable terms in the future. For example, companies with good credit scores tend to get lower interest rates for their loans and can easily avoid accrued interest.

5. Access Funds Quickly

Business expansion requires significant capital to hire new employees and operate the business. You can choose to wait for business profits to increase before reinvesting them. However, if you have projects that should start soon, you may take out a loan. The loan allows you to buy new equipment and finance new product development before your competitors do it first.

6. Take Advantage of Low-Interest Rates

Lenders often provide low-interest rates on business loans to get customers. As competition in the lending business becomes stiffer, business borrowers can negotiate for the best deals. Also, business loans are likely to come with lower interest rates than any personal loan.

7. Nurture Relationships With a Specific Lender

When you nurture relationships with your lender, you increase your chances of getting a loan in the future. The lender will have worked with you and knows how you handle money. The next time you go to get a loan, you can always refer back to the previous loan that you repaid on time.

8. Overcome Liquidity Problems

Businesses require working capital to operate effectively. However, small businesses often face challenges that make it difficult to meet utilities and payroll requirements. Since these challenging times are temporary, the business can get through the hard times with the help of a small business loan.

9. Refinance Debt

If your business already has a loan, the mounting debt may interfere with your ability to pay bills and sustain business operations. A small business loan can help refinance your debt and give you time to pay off any loans. The new loan may have a lower monthly payment and interest rates.

10. Reduce Tax Payments

Sometimes, your tax obligations may be lower if you take out a small business loan. For example, you can claim deductibles on the interest you pay on loans. The best approach is to consult a tax expert to know how taking a loan can impact your taxes.

Taking a loan for your small business is easy if you use the right lender. Huntington Coast Capital provides lending solutions for small and medium businesses that need quick cash. Contact us for more information.

09AprMay 19, 2018 By Patrick

HCC Secures Asset Based Loan For Importer Of Baby Bedding And Gifts

Huntington Beach, CA: Huntington Coast Capital secured a $1,250,000 asset based line of credit against accounts receivable for a company in the baby bedding and gift industry. The company was able to secure an asset based line with additional financing in the form of purchase order funding, another form of asset based loan program.

Their current lender was more conservative than the funding we secured for them. HCC was able to provide them with an asset based solution that delivered more capital availability to grow their business. Their asset based loan availability grew from $750,000 to $1,250,000 allowing them to fill more orders from their major customers!

Could your business benefit from an asset based loan? Huntington Coast Capital secures asset based loans in California and across the nation. Give us a call to see how we can assist your business.

To your success!
Patrick Zazueta
Huntington Coast Capital, Inc.
714-719-8966

01DecDecember 1, 2017 By Patrick

Huntington Coast Capital Presents At The Cove At UC Irvine Applied Innovation

Huntington Beach, CA Entrepreneurs from around the southwestern United States came to The Cove Applied Innovation Center at UC Irvine to pitch their business plans in an effort to raise capital from venture capitalists and equity investors. The companies in attendance ranged from pre-revenue, startup concepts to established companies looking to take their business to the next level. A broad range of industries were represented some of which were video game developers, niche apparel companies, foam mattress engineers, craft tea brewers, education service platforms, and airline sanitation concept companies. There were also medical technology companies represented in the area of liver function testing and patient records management.

The energy in the room was high with business owners given either 1-minute or 5-minutes to present their business and plans for the future and the opportunities that existed. The time frames were offered at different ticket price levels. The pressure was on from the beginning as the moderator kicked of the program by stating bluntly, if you can not explain your business and justification for investment in the first minute, the investors will not listen to what you have to say in the second minute!

After the entrepreneurs were placed in the hot seat to present with hundreds of eyes fixated on them, the panelists were given the opportunity to ask questions about the business to dig deeper to see if an investment opportunity existed. Feedback was direct and pointed as the venture fund and equity groups inquired about the financial details and assessed the likelihood of earning a return on an investment. Investor comments were direct, cold and objective as they assessed the quality of the opportunities being presented.

Huntington Coast Capital was at the program to discuss the other side of business lending, asset based loans. Successfully securing an equity investment for your company is a gratifying feeling. It is an acknowledgement from discerning and critical investors that your business plans have merit and potential. Sometimes, this endorsement and confidence can be supported with investments of over a million dollars!

The harsh reality is however, that very few companies earn the privilege of an equity investment. These equity groups are reviewing upwards of three business investment opportunities per day. I often equate companies looking for an equity investment as sea turtles. Millions are born and sadly only a few hundred make it to open water!

This success ratio can be discouraging. However, when companies can not qualify for an equity investment, capital may be available on the debt side. If you are looking for money to hire staff, complete research and development of a product, market your company or gain inroads to supplier and customer contacts, equity is a great option. Conversely, if you are looking for funds to cover purchase orders or improve your working capital cycle, an asset based loan is a better option. You should not give up equity in your company if all you are looking to do is cover your cost of goods, purchase equipment or increase your inventory to meet demand. These capital expense items are all met with asset based loans.

Huntington Coast Capital specializes in securing asset based loans for companies of all sizes throughout the United States. Our typical funding amount is anywhere from $250,000 to $1,500,000. If you have solicited an equity investment with no success, look in to an asset based loan. We would welcome the opportunity to speak with you about your business goals. Call me directly at 714-719-8966.

To your success!

Patrick Zazueta | Founder
Huntington Coast Capital, Inc.

17OctOctober 17, 2017 By Patrick

HCC Secures $500,000 Asset Based Loan For A Women’s Apparel Company

Huntington Beach, CA A women’s apparel company that started in 2008 was experiencing rapid growth due to increased brand awareness and marketing. The company is in a niche market within the women’s apparel industry. When the company first started in 2008, they were purely an eCommerce company. The company found that they could compete in a niche market and grow much more rapidly if they were not competing in the main stream women’s categories. Because they were largely an eCommerce, direct to consumer company, traditional asset based loans were not available to them. Traditional asset based lending companies loan against accounts receivable and inventory. These two assets on a balance sheet accompany sales to retailers, wholesalers and distributors, not sales directly to the consumer.

The company was profitable, but not to a level that banks like to see. After speaking with a number of banks with no positive results, they decided to engage Huntington Coast Capital. While asset based loans to eCommerce focused companies are not easy to come by, Huntington Coast Capital has a reliable stable of such lenders eager to be involved in the space.

The short story is, we were able to secure them an asset based loan and close in less than 3 weeks from our initial consultation. Huntington Coast Capital secured a $500,000 asset based loan against the general assets of the company. We succeeded where others failed. This asset based loan will allow the company to hit their sales numbers by giving them the capital they need to fulfill the ever-increasing orders.

Could your business use an asset based loan? Give us a call 714-719-8966.

To your success!

Patrick Zazueta | Founder
Huntington Coast Capital, Inc.

25JulJuly 26, 2017 By Patrick

$50,000 Asset Based Loan For A Chiropractic Office

Huntington Beach, California – Huntington Coast Capital secured an asset based loan for a chiropractic office. The use of proceeds was to consolidate existing debt and additional funds for marketing and working capital. These smaller sized loan requests are difficult to be approved under due to the return to the funding source. However, we were able to get two separate approvals, one through the SBA and another through a private capital source. The SBA option was naturally more attractive from an interest rate perspective and the borrower elected that option.

The SBA loan will be an asset based loan with a blanket lien on all of the business assets. The loan was approved due to strong debt service coverage and the borrower’s strong credit score. The term asset based loan is a broad term and can be used to describe a number of different loan products. Some asset based loans are specific to accounts receivable, inventory or equipment and others are more of a blanket loan on all assets of a business, as in our most recent example.

If you business could use an asset based loan to take advantage of growth opportunities, call us! 714-719-8966.

To your success!

11JulJuly 11, 2017 By Patrick

Business Loan For Dickey’s BBQ $40,000

Huntington Beach, CA: A franchise owner for a national chain known as Dickey’s BBQ (the largest BBQ franchise in the country) came to Huntington Coast Capital for a business loan. The loan amount needed to replace and upgrade a Point Of Sale system for the business and consolidate debt was $40,000. At this loan amount, most traditional lenders shy away and opt for financing the larger requests over $150,000.

The franchise owners found it difficult to obtain financing from their local bank. They were introduced to a number of consultants that were not in the capital markets specializing in business loans and wasted a lot of time searching for the elusive capital. Huntington Coast Capital was introduced through one of our affiliate partners and tasked with securing the funding they desperately needed.

After a couple of inquiries, we were able to secure the business loan for their franchise. By utilizing this debt, they are now able to upgrade their systems and restructure their debt at more favorable terms.

Could your company use a business loan? Huntington Coast Capital secures business loans in our home town of Huntington Beach and nationwide. We look forward to serving your business loan needs.

To your success!

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

23Apr By Patrick

Huntington Coast Capital Secures $1,000,000 Equipment Loan For A Distributor Of Water Station Vending Machines

Huntington Beach, CA: A company specializing in alkaline water vending machines was searching for an equipment loan to build the inventory required to meet new customer contracts.

Their water stations are designed for commercial and residential use. Their flagship commercial product is the WST-700 is a state-of-the-art water dispensing system that purifies drinking water to a very high standard and percolates it through layers of natural minerals to produce a soft, silky water in one, three and five gallon increments.

On the consumer side, the WST-100 is the first compact reverse osmosis water purifer with a built-in alkaline mineral cartridge. It percolates water through five beds of minerals to produce alkaline water in a very natural way.

Demand for their products has been increasing steadily over the past few months on both the consumer and commercial side. Huntington Coast Capital secured them an arrangement with a consumer lease company to manage the credit review, approval and management of the products sold directly to household users and an equipment loan purchase line to manage and fund their commercial business. Without the equipment loan products delivered by Huntington Coast Capital, they would have to turn away a lot of business and stall the company’s growth.

If traditional banks have declined your company’s equipment loan request, call us. Most business loans are approved through the private sector. If your search for financing has ended in a dead end, give us a call.

To your success!

Patrick

09FebFebruary 9, 2017 By Patrick

Huntington Coast Capital Arranges $50,000 Equipment Loan

Huntington Beach, CA: Huntington Coast Capital arranges a $50,000 loan to purchase new equipment. A client in the snack food distribution business was growing quickly and needed new equipment to meet demand. The company has been in business for 3 years and although they started with $2,000,000 in equity (primarily invested in existing equipment), they were showing a loss from operations.

This type of loan request is difficult for a few reasons: 1) losses the company is showing on their financial statements, 2) size of the loan. Most lenders are not interested in providing loans of this size, 3) the majority of lenders would not consider the loan on a stand alone basis, 4) most lenders need outside collateral and/or the banking relationship to provide a loan of this nature.

After a fair amount of trial and error from both our funding sources and independent research performed by the company, we found a solution.

The $50,000 loan will allow the company to purchase 2 new label machines that are needed to meet the schedule of the new contracts rolling out this year. These new contracts total over $4,000,000 in gross sales over the next 12 months. A relatively small amount of capital will enable the company to make a big difference to their top and bottom lines.

If your bank is making you feel insignificant, give us a call 714-719-8966. We specialize in securing loans for requests and companies of all sizes. Equipment loans are just one category of asset financing we focus on. Whether you’re in need of general working capital funding, tenant improvements and expansion funding or purchase order financing, we can assist.

To your success!

Patrick Zazueta | Founder
Huntington Coast Capital, Inc.

11DecDecember 11, 2016 By Patrick

HCC Funds $1,300,000 In Business Loans In The Month Of December

Huntington Beach, CA. During the month of December Huntington Coast Capital secured a $650,000 equipment loan and two SBA loans for $500,000 and $150,000 for a total of $1,300,000 in business loans! The scenarios are outlined below:

$650,000 equipment loan for a southern California contractor – The company was paying a high rate of interest on the equipment they used in their day to day operations – The high cost of financing was impacting their cash flow. They engaged Huntington Coast Capital for their equipment loan needs and we were able to reduce their financing costs by almost half, saving them thousands in monthly finance expense.
$500,000 SBA loan for a growing company in the stencil business – The company produces custom stencils for any design and application. The company had an existing SBA loan and were looking to borrow an additional $350,000 to purchase additional equipment to meet growth demands. Huntington Coast Capital secured a $500,000 SBA loan to cover the equipment costs and refinance the existing SBA loan.
$150,000 SBA Express Loan for a custom glass manufacturer – An established custom glass manufacturer was looking for additional funds for advertising and marketing to break in to new markets and broaden their customer base. They have a profitable business serving general contractors and are looking to expand in to direct commercial work.

Whether your business loan needs are for equipment purchases, inventory or general working capital demands, we can assist. We serve companies of all sizes from startup to established.

13OctOctober 13, 2016 By Patrick

Equipment financing, inventory financing, and working capital loans are easy to find right? Not if you’re in one of these two scenarios…

Huntington Beach, CA: Business owners looking to obtain a business loan for equipment financing, inventory financing or working capital have many options to choose from. Capital is plentiful for companies on the rise and in need of financing to meet their growth potential. In fact, most of our clients come to us with equipment financing, purchase order financing, inventory financing, and working capital loan needs. Huntington Coast Capital has a extremely high success ratio in placing these loan requests.

However, there are a couple of situations where this may not be so easy. On a rare occasion we will get a funding request for a company in the medicinal marijuana industry. While the selling of marijuana is legal in some states, there is still a stigma attached to it, even if it is legitimately prescribed by a doctor. As you can imagine, obtaining funding for the growers and distributors in this industry, even if completely legitimate, is very difficult to secure. Some lenders simply do not lend in this industry and lump it together with other unsavory industries like gambling and adult content distribution. Is this fair? I have no idea. This article isn’t about providing an opinion on what the lender’s moral compass should be when analyzing loan requests in this industry. I can say, however, that finding a lender to fund your expansion in this business is very difficult. In fact, even with our extensive contacts in the industry, we only know of one. That’s right one. However, we were happy to have this contact when we received a call from a company in Colorado inquiring about an equipment loan along with funding for tenant improvements for his budding (no pun intended) business. The fact is that his cash flow and profit margins are extremely strong and his business could grow substantially with the right capital partner. Looks like we found them a solution after months of searching on their own in vain. A satisfying moment for us indeed. Now his Cannabis business is set to catapult to the next level!

The second difficult spot to be in is when you are looking for accounts receivable financing for consumer accounts receivable. The market is flooded with options for financing accounts receivable when you are selling business to business, but business to consumer is a ghost town. Most all lenders have the perspective that financing against these debt pools is risky and the credit process for business credit and personal credit is much more subjective and difficult to manage. I have to say, that I agree. To manage risk in this area requires having a specialty and sole dedication to the industry. Like other types of lending, you need to manage losses through diversifying the risk over several separate exposures and minimize credit to any one debt holder. However, this said, it is possible, just not popular among the lending community. As before, we have only one lender in this industry! We don’t come across these requests too often, but when we do, it is satisfying to say, “we may have a solution.”

Do you have a difficult loan request? Has everyone told you “no” because you fit one of the scenarios above? If so, we would like to speak with you!

Be on the lookout for our next blog article that features auto mechanics and why that experience also requires a knowledge of the options! I think we can all agree that we are paying too much for our cars to be serviced in most cases and it pays to know who else can do it for less!