“We must overcome the notion that we must
be regular… It robs you of the chance
to be extraordinary and leads you to the mediocre.”
- Uta Hagen, Three-time Tony Award winning actress
There is no question that the last 18 months have been tough on corporate America. Companies small and large have been faced with a barrage of challenges. Some have been overwhelmed while others have hunkered down in a bunker mentality waiting for the proverbial smoke to clear while plotting their next strategic forward push. The survivors having been battle tested are more determined than ever to come out of this leaner and operating more efficiently, prepared for inevitable growth when the landscape calls for it. Although the economy is showing clear signs of recovery, the banking sector may not fully rebound anytime soon. It’s possible that the continued problems in the banking industry will substantially outlast the recession, resulting in a significantly suppressed availability of credit in a recovering economy.
Last month we discussed an interesting study (October Newsletter) that shows CEO’s across the country are now facing challenges that haven’t really been faced before. The main concerns right now are Operating in the Context of Financial Uncertainty and Operating with Increasingly Tight Credit. This probably doesn’t come as much of a surprise.
In our conversations with business owners we are seeing this more and more. Most people are coping with a new, more difficult reality after months of denial, anger, negotiating and even pity as many have accepted how drastically the environment has changed. Most small business owners realize that the new government won’t help them, and neither will banks or big businesses. The smartest business owners have accepted that it is up to them to survive and thrive in the new economy.
In order for companies to now be successful in obtaining financing, even for small $10K - $20K requests, it’s important to be prepared to supply ample supporting information to aide in the request. The days of banks and independent lenders issuing approvals based solely on a FICO score are long gone – now the focus is on Quality over Quantity. Every financial request that we are seeing get approved has been thorough and compelling (i.e. business history & plan, interim and historical financial statements & tax returns, etc). The business world is in a seemingly perpetual state of change and business owners and executives that are changing along with it are positioning their companies for long-term success.
At First Star, we want to see all of our clients succeed and are here to help facilitate growth even when the macro-environment is ever-changing. However, we are not stretching to fund as much as possible with a minimal amount of due diligence. Regardless of dollar amount we are committed to making good decisions – there is an appropriate and responsible level of due diligence that is being conducted on every request that we are presented with.
First Star Capital is here to help your company obtain equipment financing when it is needed. Whether it is next week, next month, or next year, we will be here to help and our entire team looks forward to being a valuable financing resource for your company in the years ahead.
About First Star Capital
First Star Capital is an established national firm that has financed thousands of different businesses across the country and has funded hundreds of millions of dollars worth of capital equipment. We are an independent commercial lender with a specialty focus in equipment financing and leasing. First Star Capital is a direct lender with the ability to quickly and efficiently fund new financing requests between ten-thousand and ten-million dollars. Since we are a direct lender with our own funding and servicing capabilities we are able to deliver tangible value added financing solutions with the utmost flexibility. First Star Capital has the internal ability to underwrite a variety of different financing requests – nothing is too big or too complicated.
First Star Capital
Did You Know?
That a business owner who leases equipment on a finance lease may enjoy a deduction much greater than the initial investment required to start the lease? Check out the IRS 179 Expense Deduction here.
This year’s stimulus bill included a 50% depreciation bonus for new equipment purchases and higher Section 179 expensing levels (visit www.DepreciationBonus.org or www.EconomicStimulusInfo.com for more information).
Is your company
in need of working capital?
With a working capital cash advance from First Star Capital you get immediate cash deposited into your business bank account in exchange for a fixed dollar amount of your future credit card sales.
For more information, visit www.firststarcapital.com/
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about the Economic
or Section 179? Visit EconomicStimulusInfo.com