Late last month, the President and CEO of BFS, Marc Glazer had the opportunity to sit down with The Coleman Report to talk about a healthier, more optimistic Main Street. The Coleman Report provides webinars for small business bankers and hosts several niche events in the financial industry. They issue two daily emails to over 23,000 small business lendingprofessionals.
Looking back over the last decade or so, it’s easy to forget the myriad of changes the industry, small businesses and the country have been through since Marc initially transformed a small business portal, 4SmallBusiness.com, into a specialty finance company, BFS Capital.
Even when he made the big commitment in 2008 to seriously growing BFS Capital, he never could have foreseen the many events—economic and otherwise—that would have such a huge impact on our clients and the small business landscape across the U.S. Not to mention how uniquely BFS Capital would be positioned to help many of them with capital solutionswhen they needed them most.
In the last few years, we’ve started to see small businesses actually looking to take money mainly for growth. In fact, sixty percent of small business owners surveyed have faced difficulty obtaining loans from traditional lenders for growth needs, so many are forced to seek out alternative funding solutions.
But what about the health of our business clients, and the quality of the deals we’re able to make with them? The good news is that our (BFS Capital) default rates have dropped slightly. Marc believes that’s a combination of the macro-economic conditions around the U.S, but that it’s a matter of financing higher quality, larger businesses that, from our perspective, are just more stable. And where does Business Financial Services fit in the constellation of small business financing, both “traditional” and “alternative?” And does BFS have a “typical” client?
Although with our short-term revenue-based business loans and merchant cash advances, we have the capacity to finance businesses with as little as $5,000 to as much as $1 million, there are some places on the continuum where our deals cluster. Our “sweet spot” for deal size is in the $25,000 to $75,000 range. As far as business sector—restaurants, retailers and service make up the bulk of our business. However, with the advent of our small business loan a couple of years ago, we’re now open to manufacturing, distribution and so forth.
What about repayment? For the most part, our customers typically make daily, automatic payments. If a business owner uses our merchant cash advance product, repayment is a fixed percentage of their daily credit card sales. If a business is taking advantage of our loan product, repayment is a daily fixed amount, although that could also be weekly.
Our products help small business owners with any business need, from time-sensitive growth opportunities to emergency situations that need quick access to working capital. We are truly champions of small business and are dedicated in helping them succeed.
For more information on small business loans and merchant cash advances or to see how we may be able to help you grow your business, contact us today. Call 1-866-905-4334 or complete our on-page application form and a representative will contact you shortly.