The best bank for you might be in Massachusetts, Michigan, or Texas!

Since 1994, approximately 7,808 banks have left the industry because of mergers, consolidations, or failures, FDIC data show. An unpredictable economy and more regulations have taken their toll on the sector, leaving small business owners with fewer options to find the right lender.

Despite a historically low number of bank failures in recent years, the slow and steady decline in bank numbers continues. Few new banks are being chartered, and banks continue to merge with one another, reducing the number of charters.

Because changes in banking policy are often widespread, they can have systemic effects on the economy. As banks tightened their credit policies and began offering fewer loans and lines of credit to small companies, during a recession, banking effects on business may be magnified because cash is in such high demand.

Tips for Finding Financial Help

1. Research who is the right bank for your industry. It is not always the one nearest.

2. Consider a loan advisor. Just as many consumers would like to have a physical bank nearby, a good advisor is often preferred by many consumers. A good loan advisor can help you make smarter financial decisions to be in better control of your money while also being available for day-to-day questions you may have.

3. Look for other business owners and make time to ask specific questions directly related to their experience and your challenges.

4. Invest early in getting your financial statements up to date, corporate structure, ownership structure, and shareholders agreements in place.

5. Consider insuring your accounts receivables before contacting a new lender.

At AmRock Financial, our experts specialize in helping business owners & entrepreneurs obtain the capital they need to succeed. By having the right financing in place, businesses can avoid cash-flow challenges, take advantage of their growth potential & increase profitability. We provide direct funding to clients through purchase order finance, inventory & structured trade financing. If we are unable to finance your business directly, we will leverage our long-established relationships with more than 1,500 lenders to secure the financing you need to survive & thrive.

You pay nothing if we are unable to get you funded. We only charge a success fee after you get funded, so our services are FREE until we succeed.

AmRock Financial Helps Staffing Company Receive a $5 Million Loan

MIAMI- Small and mid-sized businesses are struggling to keep their doors open due to the effects of the global pandemic. Business owners have been flocking to banks to obtain whatever loan they can get their hands. Unfortunately, banks have restricted lending, making the searching process difficult for small business owners.

One of Miami’s leading financial firms, AmRock Financial, has seen an influx of small business owners who are ready to close their doors and file for bankruptcy. Since 2007, AmRock has provided more than $1 Billion in financing to small and mid-sized businesses. It has recently expanded its team to help its growing number of clientele obtain the funding they need to succeed. AmRock Financial does not charge small business owners any upfront fees, only modest success fees based on performance, and uses its network of over 1,500 lenders to match debtors to the right lender.

A local staffing company that provides industrial and administrative positions in the logistics and warehousing space, applied for a loan at a local Bank, months later the loan was eventually denied.  A common manifestation of what happens in our banking system nationwide. The banker recommended AmRock Financial and referred the business owner to us. AmRock met with the owner and after listening to his short- and long-term goals, structured a $5 million, 10-year term loan with another Community Bank, which is one of 1,500 verified banks in the AmRock Financials network. The company paid off  $4 million of existing debt and  received an addition $1 million in working capital.

Obtaining a bank loan should be easy in America but all too often, the process is filled with uncertainty, frustration, and distrust. Having a skilled commercial loan advisor/broker like AmRock can be a valuable asset.

Founder and CEO Frank Tomasino says “In 2007, when we began, we had no lenders, no relationships and the economy was deteriorating and eventually it collapsed in 2008. Banks collapsed and most were bailed out by the government, the economy descended into an abyss, but we knew eventually new lenders would need to start lending. This is similar to what we are seeing now with the global pandemic. We know that certain community banks are now lending but finding a local bank could be a challenge. AmRock has found that your perfect bank might be located in an entirely different state as the landscape has changed.

Since the beginning of the pandemic, AmRock Financial has helped hundreds of domestic and international businesses keep their doors open, this staffing company is just one of many. The AmRock team is hoping to help as many more as possible.

In this new Spotlight series by AmRock Financial, we will            explore all the debt financing options that are available to your company.

In this first Spotlight, we focus on why an Asset Based Loan (ABL) could be the right funding option for your company so you don’t ever have to worry about giving up equity in your business.

ABL is a form of financing that involves borrowing against the value of a company’s assets. These assets may include inventory, equipment, accounts receivable, or real estate. In an asset based loan, the lender or bank assesses the value of the assets and then offers a line of credit or a term loan based on that value.

There are several reasons why companies should consider asset based loans as a source of financing:

Firstly, an asset based loan can provide companies with access to larger amounts of funding than traditional loans. This is because the loan is secured against assets, which reduces the lender’s risk. As a result, companies can typically borrow more money through an asset-based loan than they could through an unsecured loan. This can be particularly beneficial for companies that need to finance large projects or make significant investments in growing their business.

Secondly, an asset based loan can be more flexible than traditional loans. This is because the loan is secured against assets, rather than being based solely on a company’s creditworthiness. As a result, companies with weaker credit profiles may still be able to obtain funding. Additionally, the terms of the loan can often be tailored to suit the company’s needs. For example, the repayment schedule may be adjusted to match the company’s cash flow, or the loan may be structured to allow for seasonal fluctuations in revenue.

Thirdly, asset-based loans can be obtained more quickly than traditional loans. This is because the lender is primarily focused on the value of the assets, rather than on a lengthy credit review process. This can be particularly important in situations where a company needs funding quickly in order to take advantage of a business opportunity or to address a pressing financial need.

Finally, asset based loans can be a good option for companies that are growing rapidly or undergoing significant changes. This is because the value of the assets is likely to increase over time, which means that the amount of funding available through an asset-based loan may also increase. An added benefit to consider as the company’s financial profile improves, it may also become eligible for more favorable loan terms or lower interest rates.