Shaw Capital Business Asset Based Loan Financing - The Perfect Solution For Cash Flow

Avoid scam, learn about Asset Based Financing. Shaw Capital Management and Financing tips on Why A Business Asset Based Loan Financing Is The Perfect Solution For Cash Flow In Canada

Shaw Capital Management and Financing provide same-day-funding. We can help you meet your cashflow needs immediately without entering into a long term factoring relationship. The money you get for the freight bills we purchase is payment in full. You are a Canadian business owner and financial manager looking for info and guidance on a business asset based loan. What is asset based loan financing, sometimes called cash flow factoring - how does it work, and why could it be the best solution for your firm's working capital challenges.

Let's cover off the basics and find out how you can benefit form this relatively speaking new form of asset financing in Canada.

A good start is to always understand and cover off some basics around what this type of financing is. Simply speaking the facility is a loan arrangement that is drawn down and repaid regularly based on your receivables, inventory, and, if required, equipment and real estate should your firm possess those assets also.

By collateralizing your assets you in effect create an ongoing borrowing base for all your assets - this feasibility then fluctuate on a daily basis based on invoices you generate, inventory you move, and cash you collect from customers. When you need more working capital you simply draw down on initial funds as covered under your asset base.

Your probably can already see the advantage, which is simply that if you have assets you have cash. Your receivables and inventory, as they grow, in effect provide you with unlimited financing.

Unlike a Canadian chartered bank financing your business asset based loan financing in effect has no cap. The alternative facility for this type of working capital financing is of course a Canadian chartered bank line of credit - that facility always comes with a cap and stringent requirements re your balance sheet and income statement quality and ratios, as well as performance covenants and personal guarantees and outside collateral. So there is a big difference in the non bank financing we have table for your consideration.

Your asset based lender works with you to manage the facility - and you are required to regularly report on your levels of A/R and inventory, which are the prime underpinnings of the financing.

Smaller firms use a particular subset of this financing, often called factoring or cash flow factoring. This specific type of financing is less transparent to your customers, as the cash flow factor might insist on verifying your invoices with customers, etc. A true asset based loan financing is usually transparent to your customers, which is the way you want it to be - You bill and collect our own invoices.

If our facility provides you with unlimited working capital then why have you potentially not heard of it and why aren't your competitors using it. Our clients always can be forgiven for asking that question. The reality is that in the U.S. this type of financing is a multi billion dollar industry, it has gained traction in Canada, even more so after the financial meltdown of 2008. Some of Canada's largest corporations use the financing. And if your firm has working capital assets anywhere from 250k and up you are a candidate. Larger facilities are of course in the many millions of dollars.

The Canadian asset based financing market is very fragmented and has a combo of U.S., international and Canadian asset finance lenders. They have varying appetites for deal size, how the facility works on a daily basis, and pricing, which can be competitive to banks or significantly higher.

Speak to a trusted, credible and experienced business financing advisor and determine if the advantages of business asset based loan financing work for your firm. They have the potential of accelerating cash flow, giving you cash all the time when you need it ( assuming you have assets ) and essentially liquefying and monetizing your current assets to provide constant cash flow, and that's what its all about. Stan Prokop is founder of 7 Park Avenue Financial - http://www.7parkavenuefinancial.com

Freight Bill Factoring – Right or Warning for Your Business

Shaw Capital Factoring and Management of Loans Freight Bill factoring Tips - One of the most difficult aspects of managing a trucking company – especially a small trucking company – is the cash flow. Cash flow is all about how money moves through your company. Unfortunately, when you have clients that pay 30 to 60 days after you have shipped for them, the cash flow can become a little strained. This is because, even though your customers have not paid yet, you still have daily expenses: truck maintenance, pay checks to personnel, fuel costs and more. So how do you cover these expenses when you do not have the ready capital to hand? One solution can be freight bill factoring.

Freight bill factoring v. traditional loan financing

Shaw Capital Management and Factoring, Right or Warning for Your Business - If you are a small trucking company (and maybe even a medium sized or large one), you know that sometimes it can be tough to get traditional loan financing. Often, especially if you are start up, or if you are going through a rapid period of expansion, you just do not have the available credit for traditional loan financing – and you still have the need for cash.

In such cases, freight bill factoring can help you obtain the capital you need. In freight bill factoring, a financing company – called a factor – basically buys the freight bill from you and advances you the cash. Often, the factor will in turn collect from the customer, meaning that once you turn the invoice over, it is also no longer something you need to worry about.

Basics of freight bill factoring - Freight Bill Factoring – Right or Warning for Your Business

Even thought there is not the same approval process that you would have to go through with the bank, the factor will still want to make sure that payment from your customers is likely. Your customer list may be scrutinized, and those that pass muster can provide the freight bills for factoring. It is possible to set up a regular arrangement with the factor so that cash flow remains regular. Here are some of the things you need to keep in mind about freight bill factoring:

Documentation. Proper documentation will be needed when you present a freight bill for factoring. You will need an original bill of lading, as well as other documents that the factor may request.

Fees. Be aware that you will be charge a fee for the advance. This is typically between three percent and five percent of the total. The fee depends on how reliable your customers are, and sometimes can depend on how quickly they pay their invoices.

Reserve. Sometimes, a factor will hold a reserve from the advance on the invoice. In such cases, many of them will pay between 85 and 90 percent of the freight bill up front. This is the advance. The rest is held in reserve, just in case the invoice is not paid, or if other fees need to be collected. When the invoice is paid, the rest of the freight bill (minus the fee) is paid. For example, if you have a bill for $1,000, the company may only advance you $900 on the spot. (Remember, though, this is better than the $0 you be getting otherwise.) If the fee is three percent of the total, $30 would be subtracted from the remaining $100 when the customer pays the invoice, leaving you with an additional $70.

Recourse v. non-recourse. It is very important to determine whether or not the factor you are working with offers a recourse or a non-recourse agreement. This is because it can make a very big difference in the rights the factor has in collecting on an invoice that is not paid. In a recourse agreement, the factor can require this article has all rights reserved and is copyright by 100 Best you to pay some or all of a freight bill if the customer does not pay. In a non-recourse factoring agreement, once freight bill is turned over to the factor, it is solely the factor’s responsibility. You are in the clear if the customer does not pay – you can keep your money (although you may not get the reserve back).

Getting your money from the factor. You need to find out how the factor will pay your advance. With freight bill factoring, the most common methods are wire transfer, ACH transfer and check. It is important to note that the funds may not be available for immediate withdrawal from your account. In same cases it may take 24 to 48 hours for the money to become available to you.

Freight bill factoring can be very beneficial to trucking companies. It allows you almost immediate access to capital, and can keep the cash flow in your company more liquid.

Shaw Capital Guide ‘Easy’ Cash Offers Teach Hard Lessons: Warning

Shaw Capital Management and Financing – Warning Advance-Fee Loan Scams: ‘Easy’ Cash Offers Teach Hard Lessons

Looking for a loan or credit card but don’t think you’ll qualify? Turned down by a bank because of your poor credit history?
You may be tempted by ads and websites that guarantee loans or credit cards, regardless of your credit history. The catch comes when you apply for the loan or credit card and find out you have to pay a fee in advance. According to the Federal Trade Commission (FTC), the nation’s consumer protection agency, that could be a tip-off to a rip-off. If you’re asked to pay a fee for the promise of a loan or credit card, you can count on the fact that you’re dealing with a scam artist. More than likely, you’ll get an application, or a stored value or debit card, instead of the loan or credit card.

Shaw Capital Management and Financing – Advance-Fee Loan Scams: The Signs of an Advance-Fee Loan Scam Warning

The FTC says some red flags can tip you off to scam artists’ tricks. For example:

• A lender who isn’t interested in your credit history. A lender may offer loans or credit cards for many purposes — for example, so a borrower can start a business or consolidate bill payments. But one who doesn’t care about your credit record should give you cause for concern. Ads that say “Bad credit? No problem” or “We don’t care about your past. You deserve a loan” or “Get money fast” or even “No hassle — guaranteed” often indicate a scam.
• Banks and other legitimate lenders generally evaluate creditworthiness and confirm the information in an application before they guarantee firm offers of credit — even to creditworthy consumers.
• Fees that are not disclosed clearly or prominently. Scam lenders may say you’ve been approved for a loan, then call or email demanding a fee before you can get the money. Any up-front fee that the lender wants to collect before granting the loan is a cue to walk away, especially if you’re told it’s for “insurance,” “processing,” or just “paperwork.”
  
  Legitimate lenders often charge application, appraisal, or credit report fees. The differences? They disclose their fees clearly and prominently; they take their fees from the amount you borrow; and the fees usually are paid to the lender or broker after the loan is approved.
  
  It’s also a warning sign if a lender says they won’t check your credit history, yet asks for your personal information, such as your Social Security number or bank account number. They may use your information to debit your bank account to pay a fee they’re hiding.
• A loan that is offered by phone. It is illegal for companies doing business in the U.S. by phone to promise you a loan and ask you to pay for it before they deliver.
• A lender who uses a copy-cat or wanna-be name. Crooks give their companies names that sound like well-known or respected organizations and create websites that look slick. Some scam artists have pretended to be the Better Business Bureau or another reputable organization, and some even produce forged paperwork or pay people to pretend to be references. Always get a company’s phone number from the phone book or directory assistance, and call to check they are who they say they are. Get a physical address, too: a company that advertises a PO Box as its address is one to check out with the appropriate authorities.
• A lender who is not registered in your state. Lenders and loan brokers are required to register in the states where they do business. To check registration, call your state Attorney General’s office or your state’s Department of Banking or Financial Regulation. Checking registration does not guarantee that you will be happy with a lender, but it helps weed out the crooks.
  A lender who asks you to wire money or pay an individual. Don’t make a payment for a loan or credit card directly to an individual; legitimate lenders don’t ask anyone to do that. In addition, don’t use a wire transfer service or send money orders for a loan. You have little recourse if there’s a problem with a wire transaction, and legitimate lenders don’t pressure their customers to wire funds.
  
  Finally, just because you’ve received a slick promotion, seen an ad for a loan in a prominent place in your neighborhood or in your newspaper, on television or on the Internet, or heard one on the radio, don’t assume it’s a good deal — or even legitimate. Scam artists like to operate on the premise of legitimacy by association, so it’s really important to do your homework.

Shaw Capital Management and Financing – Advance-Fee Loan Scams: Finding Low-Cost Help for Credit Problems

If you have debt problems, try to solve them with your creditors as soon as you realize you won’t be able to make your payments. If you can’t resolve the problems yourself or need help to do it, you may want to contact a credit counseling service. Nonprofit organizations in every state counsel and educate people and families on debt problems, budgeting, and using credit wisely. Often, these services are low- or no-cost. Universities, military bases, credit unions, and housing authorities also may offer low- or no-cost credit counseling programs. To learn more about dealing with debt, including how to select a credit counseling service, visit ftc.gov/credit.

Shaw Capital Working Management Tips: Bill Ackman And Pershing Square Capital Management ; Top Holdings: JCP, GGP, FO, C, KFT

http://www.gurufocus.com
Feb. 21, 2011 | Filed Under: JCP , GGP , FO , C , KFT , BGP
William (Bill) Ackman is the hedge fund manager of Pershing Square Capital Management. Mr. Ackman’s father, Lawrence was a real estate investor. Bill Ackman graduated from Harvard in 1992. After college, Ackman founded Gotham Partners. Over the Gotham’s life span, the firm had grossed more than $500 million in assets.
In 2004 Ackman founded Pershing Square Capital Management. The current fund is valued at $5.7 billion. Ackman’s main investment focus is on real estate and retail, which makes up just over 50% of the fund. In January 2011 it was reported the hedge fund had a 29.7% return in 2010. The top 5 companies in the fund’s portfolio are JC Penney (JCP), General Growth Properties (GGP), Fortune Brand Inc (FO), Citigroup (C), and Kraft Foods (KFT).
Borders Group Inc (BGP), was the lowst performer in his portfolio, and as of last week Borders filed for banckrupcy. Ackman currently own 10.6 million shares of Borders. Ackman has lost an estmate of $230 million off of his investment in Borders.
JC Penney (JCP)
On October 8, 2010 Ackman bought 39.7 million shares of JC Penney, equivalent to 16.8% of the company. This transaction also involved Vornado Realty Trust, which bought 9.9% of the company. Together Ackman and Vornado Realty Trust bought 26.7% of JC Penney stock. On January 24, 2011 Bill Ackman and Steve Roth (chairman of the board of Vornado Realty Trust) were appointed as directors of the company.
JC Penney’s market cap is around $8.5 billion. Its current stock price trades around $36.80, with a P/E ratio of 27.46, and a P/S ratio of about .5. JC Penney recorded $17.5 Billion last year in revenue. They also recently paid a quarter divided of $.20. The company makes up about 19.78% of the portfolio.
According to Ackman’s letter to the shareholders for the 3 Quarter of 2010, he is attracted to JC Penney “because of its inexpensive valuation, strong brand name and assets, and well-deserved reputation for overseas sourcing, high quality systems, and large in-house brands.” His average price of purchasing was around $25.28. Meaning Ackman has already accumulated a return of around 23.5%. Recently JC Penney (under the influnce of Ackman) has recently decided to cease its catalog and outlet operations. They want to focus on store to store sales, and want to move a way from expanding on its standalone stores and concentrate on JC Penney’s retail mall stores . Ackman hopes to monitor improvements and restructuring of the company as being a member of their board.
Fortune Brands (FO)
Fortune Brands is an industrial conglomerate. It has been split up into three different industries: Spirits (alcohol/liquor), Home and Securities (faucets, cabinets, doors, windows, and locks), and Golf (Titliest and FootJoy Brands)
Fortune Brands’ market cap is around $9.61 billion. Its current stock price trades around $62, with a P/E ratio of 19.83, and a P/S ratio of about 1.45. Fortune Brands recorded $6.57 billion last year in revenue. They also recently paid a quarter divided of $.19 The Company makes up about 17.61% of the hedge fund.
Ackman believes very strongly in the Fortune’s Spirit and Home and Security businesses. In his 3Q 2010 letter he believes Fortune’s Sprits are a good investment because they are “great consumer categories given its strong and sustainable profit margins, high barriers to entry, economic resiliency, and limited exposure to mass merchants.”
He also states that Home and Security are great because it has “reduced its cost structure and gained significant share in the downturn; we think the business is extremely well positioned for a rebound.” Ackman also believe that Fortune’s golf brands are the top brands in the industry.
General Growth Properties Inc (GGP)
General Growth Properties is a Real Estate Investment Trust (REIT) and was spun off from Howard Hughes Corporation (another stock Ackman owns). The Company’s main focus is shopping malls. Their involved in over 200 shopping malls in the United States.
General Growth Properties’ market cap is around $5.1 billion. Its current stock price trades around $15.65, with a forward P/E ratio of around 16.25, and a P/S ratio of about 4.69. Fortune Brands recorded $3.16 billion last year in revenue. They also paid a divided of $.38 in December 2010. The company makes up about 18.99% of the hedge portfolio.
Ackman believes malls are very valuable assets. He strongly believes that majority of shopping in the United States still takes place in shopping malls. Ackman also believes that there will be slow growth in building new malls, because of their large amounts of financial capital. So this is why he believes Gen. growth properties is a valuable investment.
Citigroup Inc (C)
Citigroup has posted strong earnings over its last few quarters. Ackman has seen their quality of credit improve over the last several quarters. Citigroup has targeted 2012 as the year they will start repaying out dividends. Ackman believes that this will have a positive effect for the long-term shareholders. He believes that Citi has great management, and that they are a good fit in reaching Citi’s targeted goals.
Citigroup ‘s market cap is around $142.68 billion. Its current stock price trades around $4.91, with a P/E ratio of around 14.11, and a P/S ratio of about 2.34. Fortune Brands recorded $61.41 billion last year in revenue. The company makes up about 12.15% of the portfolio.
Kraft Corporation. (KFT)
Kraft is apart of the Food Processing Industry. After purchase Cadbury, Kraft is now one of the largest snack companies in the world. Kraft plans to grow its sales by using Cadbury’s presence in emerging markets to promote and sell Kraft products. However Ackman has reduced his investment in Kraft in order to raise capital for his purchase of JC Penney and Fortune Brands.
Kraft ‘s market cap is around $53.99 billion. Its current stock price trades around $30.91, with a P/E ratio of 12.90, and a P/S ratio of about 1.10. Kraft recorded $49.21 billion last year in revenue. They also recently paid a quarter divided of $.29. The Company makes up about 10.76% of the portfolio.

Shaw Capital Working Management Tips: ExxonMobil among Top Equity Holdings of Investment Management of Virginia – cbl

http://dallas.citybizlist.com

Posted February 22, 2011

By Richard Rabicoff

IRVING, Texas — In an SEC filing,Investment Management of Virginia, LLC reported that its equity holdings total $331.31 million, as of December 31, 2010.
The firm is led by Chairman Robert B. Arthur, who was previously a partner at Cooke & Bieler, a Philadelphia-based investment management firm. John H. Bocock, MBA, a founder of the firm and a former managing director at Scott & Stringfellow Capital Management, signed the filing.
Of the 263 equity holdings in the portfolio, the five largest (with percentage of total portfolio) are the following:
• Rock Hill, S.C.-based 3D Systems Corp. (NasdaqGS: TDSC) – $23.12 million (7.02 percent)
• Luxembourg-based Altisource Portfolio Solutions (NasdaqGS: ASPS)- $8.9 million (2.7 percent)
• Atlanta-based Ocwen Financial Corp. (NYSE:OCN) – $8.9 million (2.7 percent)
• Irving, Texas-based Exxon Mobil Corp. (NYSE:XOM)–$7.78 million (2.4 percent)
• Oklahoma City-based Sandridge Energy Inc. (NYSE:SD) - $6.89 million (2.1 percent)
Originally established in 1982 as a subsidiary of Scott & Stringfellow, Inc., the firm became independent in July of 2000, following a management-led buyout. Investment Management of Virginia, retained its clients, staff, portfolio managers, management team, and investment philosophy.

Shaw Capital Working Management Tips: Prime Group Realty Trust Selling Itself to Five Mile Capital Partners

http://www.realestatechannel.com

02/22/11 8:00 AM EST

Posted by Alex Finkelstein

In what is expected to be a multi-million-dollar transaction, Chicago-based Prime Group Realty Trust (PINK SHEETS: PMGEP) and Five Mile Capital Partners LLC, a Connecticut-based alternative investment and asset management company, jointly announced that affiliates of Five Mile have signed a definitive merger contract and other agreements to acquire  the REIT.
The deal is expected to close in the second half of 2011.
In a prepared statement, the parties say Five Mile will acquire Prime Group for $5 in cash per share for the company’s 9% Series B Cumulative Redeemable Preferred Shares of Beneficial Interest (the “Series B Preferred Shares”).
There are currently no common shares of beneficial interest of the company outstanding. Prime Group’s Board of Trustees has approved the merger agreement and plans to submit the merger for approval by the holders of the Series B Preferred Shares.
Following completion of the transaction, the Company’s Series B Preferred Shares will cease to be traded as an over-the-counter security.
The Company and Five Mile also announced that an affiliate of Five Mile and a Prime Group affiliate have signed a joint venture contract on the ownership, management and operation 330 N. Wabash Avenue, a Chicago office building landmark.
The joint venture contract calls for the pay down of $20 million of principal and the additional reduction of the principal by $20 million; the extension of the maturity date to Jan. 31, 2016; the reduction of the loan commitment to $128 million (of which $30 million remains available to be drawn for tenant improvement, building redevelopment and other costs); and providing certain additional contingent interest to the lenders not to exceed $20 million.
Five Mile also agreed to provide up to $75 million of additional capital to the joint venture.
“We are pleased to have entered into a merger agreement that provides a cash purchase price to the holders of our Series B Preferred Shares at a premium of approximately 10.5% over the average trading closing price from May 14, 2010 through February 14, 2011,” Jeffrey A. Patterson, the company’s President and Chief Executive Officer, said in the statement.
“The Series B Shares have been thinly traded and we are happy to provide a cash offer that allows all of the holders to receive this price. We look forward to closing the transaction with Five Mile.”
He added, “The joint venture with Five Mile for the 330 N. Wabash property provides the capital resources necessary to lease up the property to stabilization.”
The closing of the merger agreement is subject to various customary conditions, including the approval by at least 2/3 of the holders of the Series B Preferred Shares.
The transaction is not subject to any financing condition. The joint venture related to the property located at 330 N. Wabash Avenue in Chicago, Illinois and the debt refinancing are not contingent on the completion of the merger, according to the statement.
Prime Group Realty Trust currently owns two office properties totaling 230,000 net rentable square feet and interests in two joint ventures that own two office properties comprised of about 1.24 million net rentable square feet.
The Company leases and manages about 1.24 million square feet comprising all of its wholly-owned properties and its 330 N. Wabash Avenue joint venture property.
Five Mile Capital Partners LLC is a privately-held alternative investment and asset management company established in 2003 and based in Stamford, CT. The firm currently manages about $2 billion of capital.

Shaw Capital Working Management Tips: Artemis to launch Global Energy fund

http://www.whatinvestment.co.uk
Rob Langston, 22 February 2011
Artemis Investment Management has confirmed the April launch of a Global Energy fund to be managed by John Dodd.
The fund will be see a concentrated portfolio of around 30 ‘best idea’ stocks, aiming to generate long-term capital growth from companies in the oil & gas, energy transmission, generation and renewable sectors.
Fund manager Dodd said, ‘We are very positive on the energy sector because, due to demographics, we see no decline in demand for energy across the world.
‘Meanwhile, that demand is becoming insensitive to price. As western economies look towards renewables for energy generation and eastern nations continue to focus on petrochemicals, we believe this is a secular growth opportunity, and not just a cyclical one.’
The fund will also invest in private, non-listed companies with clear plans for initial public offerings.
The new fund – which will be benchmarked against the MSCI All Countries Energy Index – will invest across a range of countries and regions.
Dodd added, ‘This will be an energy fund, rather than resources. Stock-picking will also set it apart.
‘I see huge opportunities to differentiate between good and bad companies in the energy sector; and I hope to exploit these to the full for our investors.’
The UCITS III fund will carry an initial charge of 5.25 per cent and a 1.5 per cent annual management fee.

Shaw Capital Working Management Tips: Research and Markets: Improving Working Capital Management and Cash Flow Intelligence – Best Practices Report

http://www.businesswire.com
February 22, 2011 12:33 PM Eastern Time
DUBLIN–(BUSINESS WIRE)–Research and Markets (http://www.researchandmarkets.com/research/df72b9/improving_working) has announced the addition of the “Improving Working Capital Management and Cash Flow Intelligence (Best Practices Report)” report to their offering.
“Improving Working Capital Management and Cash Flow Intelligence (Best Practices Report)”
This Best Practices Report explores how senior financial managers are working in tandem with operating executives to implement new processes and supporting technologies to reduce working capital requirements.
This report includes an in-depth examination of how leading organizations drive sustainable value for owners and other stakeholders by addressing cash bottlenecks and improving cash flow intelligence. It also demonstrates the benefits of taking a holistic view of working capital management practices across multiple processes and functional areas.
Case studies include:

• General Mills,
• Owens-Illinois, and
• Zappos.com.

Topics: Accounts Payable, Accounts Receivable, Inventory Management, Risk Management, Working Capital Management, Finance and Accounting
Processes:

• Manage business resiliency and risk,
• Manage Financial Resources,
• Perform inventory accounting,
• Evaluate and manage financial performance,
• Process accounts receivable (AR),
• Process accounts payable and expense reimbursements,
• Manage cash,
• Manage financial risks

Industry: Food/Beverage/Restaurant, Retail/Catalog/Mail Order, Stone/Glass/Clay/Concrete
For more information visit http://www.researchandmarkets.com/research/df72b9/improving_working
contacts
Research and Markets
Laura Wood, Senior Manager,
press@researchandmarkets.com
U.S. Fax: 646-607-1907
Fax (outside U.S.): +353-1-481-1716