Cashflow Blog

The Small-Mart Revolution Talking Points
- Michael Shuman

• The Small-Mart Revolution represents a major new trend that thus far has largely escaped public notice. Local businesses in the United States suffered setbacks during the era of globalization but still make up more than half the economy—and they are now on the verge of a huge comeback.

• More than a half dozen trends are increasing the competitiveness of small business. The rising price of oil, for example, makes local production and distribution more competitive against Wal-Mart production in China. Local businesses are enjoying advantages in mastering local markets, delivering the best services, and bypassing inefficient global distribution systems. The imminent decline of the U.S. dollar also will benefit local business.

• This is good news for communities that have been told by their economic development departments that “there is no alternative” (TINA) to attracting or retaining global businesses by paying millions in incentives and reducing labor and environmental standards – policies which studies and experience are
• showing to be dead-ends.

• A growing body of evidence shows that local businesses are the best promoters of good jobs, high environmental standards, economic stability, smart growth, the “creative economy,” social equality, and political participation.

• Local businesses actually have improved their competitiveness in recent years, but these improvements haven’t registered yet, because public policy has foolishly favored of global business. Global businesses get more than $113 billion in subsidies each year, while local businesses get almost nothing. And a variety of other laws – such as banking, trade, tax, securities, and antitrust – increasingly disfavor local business.

• These policy biases mean that for the Small-Mart Revolution to take hold, waiting for the “invisible hand” of the free market is not enough. Instead, concerted actions by consumers, investors, entrepreneurs, policymakers, and organizers are necessary.

• Consumers should buy local wherever possible. By shopping smart, they can localize most of their expenditures at no increased cost and even realize significant savings. Replacing the use of nonlocal oil with local energy efficiency measures can save a U.S. household several thousand dollars per year. Around the country are directories, labels, campaigns, and local money systems that help consumers to buy local effectively.

• Even though most of the competitive economy is made of local small business, it receives very little equity investment. Even Americans who are committed to buying local have no way to localize their pension funds. One reason is that securities laws have effectively kept small businesspeople separated from small investors. A new generation of securities laws are needed that promote local stock markets, local hedge and venture funds, and local mutual funds.

• Local businesspeople are pioneering a number of strategies to beat global competitors. They are tapping consumers’ growing interest in local goods and services. They are working together through small-business associations, small-business emporiums, producer cooperatives, and flexible manufacturing networks. They are launching successful local businesses that promote local purchasing, local investing, and local entrepreneurship.

• Public policymakers are beginning to realize that smart reforms of their economic development can save millions by ending incentives, bribes, and payoffs to nonlocal business. Some of that money can wisely be spent instead to support municipal programs to buy, invest, hire, or train local. Also urgent is to press national policymakers to remove the vast number of imbalances facing local business.

• Around the country communities are organizing residents to develop comprehensive strategies for localization. Local First campaigns can be found in three-dozen cities, from Bellingham (WA) to Philadelphia (PA). In upstate New York and Maine, organizers put together hundreds of community members to envision a local economic future, to assess unnecessary imports and dollar “leakages,” and to create new local businesses that could replace those imports and plug the leaks.

• The Small-Mart Revolution is not just for the United States – it’s actually happening throughout the world. It has a new vision of globalization—to protect the local, globally. Communities are giving away technology, policy ideas, and technical assistance to increase the self-reliance of their partner communities. Global networks of communities are forming to promote fair trade, corporate responsibility, global small-business networks, global funds of local funds, and global exchanges for local currencies and barter.

• The Small-Mart Revolution offers communities worldwide a fundamentally new approach to reducing poverty, solving global environmental problems, preventing conflicts, and reducing uncontrolled immigration.

• The politics of the Small-Mart Revolution are inherently multi-partisan. Conservatives like the focus on small business, free markets, and local government, while progressives like the emphasis on community empowerment.

The Small-Mart Revolution Talking Points

By Andrina James

If you wish to keep a steady flow of cash and fulfill the daily financial needs of your business, then opt for a business cash advance. This is a new way of funding short-term monetary needs. Forget the traditional business loans. They are risky and difficult to get. Greet the new borrower-friendly cash advance of America!

Many people are not yet clear about the difference between business cash advance and business loan. They hesitate in trying this new financial tool out, for the fear of falling into the trap of swindlers. Some think of it as just another promotional gimmick of the old loan sharks. This is not so.

For a better understanding, let us take a look at both these financial services, separately.

Business Loan

 To get this loan, you need to pass through a cumbersome documentation process and require collateral.
 You have to repay the amount within a fixed time period or else you default or pull your credit rating down.
 The biggest disadvantage is that you, as a borrower, are personally liable for loan repayment. In case you fail to do so, you lose your valuables or property that you place as collateral.

Business Cash Advance

It is easier to acquire. There is minimal paperwork and the approval is comparatively speedier.
 There is no need of collateral.
 It is easy to pay the cash advance back. You can use Master Card or Visa.
 The biggest advantage is that you, as a borrower, are not personally liable for repayment.

This is because the advance is paid through the sales receipt of credit cards and so your personal property and valuables are safe.

Perhaps, this is the reason why business cash advance has gathered immense popularity, especially among the small-scale businesses. An increasing number of entrepreneurs are turning towards this financial aid. Looking at the hardcore promotion and remarkable features of this service, it is not wrong to say that this financial convenience is going to remain in the limelight for a long period of time.

If you are an aspiring businessperson or you already have a running trade, try business cash advance. Now that the difference between the regular loan and this new monetary advance service is clear, you hardly have an excuse for not using it. Moreover, your work deserves something better. [http://www.online-cashadvance-paydayloan.com/onlinecashadvance.html]Business cash advance is apt in meeting your everyday business cash needs. This is a new cash advance facility that has already made a mark in being different from other business loans. As [http://www.online-cashadvance-paydayloan.com/payday-loan.html]cash advance of America, this facility is available to the citizens of America only.

Credit:
Business Cash Advance Is Different From The Regular Business Loan

** Offer Makeover – Case Study Summary #1**

Renaissance Life Coach, Katie Curtin - www.katiecurtin.com

CORE FOCUS OF THIS MAKEOVER:
The Importance of Clarifying Your Niche and Being True to Your Own Voice

The core lesson of this makeover was about the importance of a clear niche or target market.

Katie came to me needing help with her offer.

She was feeling confused, frustrated and helpless

She knew that she needed to focus - to pick a niche. She couldn’t very well go around saying, “My coaching can help everyone.”

But she couldn’t seem narrow it down.

“Tad, there’s so many target markets I’m interested in. I don’t want to have to give any up! There’s activists, artists, social entrepreneurs . . . I hardly know where to start.”

After a few minutes, I suggested that, “Maybe your niche is people like you who are struggling to weave together all the parts of their life. People who don’t want to live the mono-cultured existence that we’re sold. Modern day renaissance people and 21st century nomads.” And I encouraged her to dial UP to volume on her political views – instead of toning them DOWN out of fear of offending people.

Something clicked in her. She loved it. And that became the basis of articulating her work.

*

To read your free copy of Katie’s 31 page Offer Makeover go to:
www.tadhargrave.com/katie.pdf

*

- KATIE’S CANDID FEEDBACK
ON THE ‘MAKEOVER’ PROCESS -

KATIE GAVE THIS PROCESS AN OVERALL GRADE OF: 10/10

HOW DOES SHE FEEL WHEN SHE LOOKS AT THE BEFORE AND AFTER VERSIONS: “It’s so much clearer who I am orienting to, and what exactly I have to offer. I just love the end result. It feels very ‘me’. I was actually nervous about sending it to some of my clients, as I wasn’t sure how they would react to my whole spectrum of opinions on the politics, spirituality, activism and the world etc.

But the response was so heartfelt and enthusiastic from some of my most treasured clients and friends. I feel reassured that I can be my most edgy self and have a fulfilling and thriving practice– in fact being daring and “out there” is the key to this!”

WHAT DID SHE THINK ABOUT THIS PROCESS BEFORE IT STARTED: “I thought the process would be faster and involve less work on both of our parts. And I had no idea I would be able to unite so successfully my diverse ideas for my niche.”

TIME SHE SPENT: 25 hours.

AMOUNT OF MONEY SHE WOULD HAVE BEEN WILLING TO SPEND: “I would love to give the market rate for people at your level of expertise. I am not sure what that is, but probably well in the thousands, given the amount of time you spent with me.”

WHAT WAS HARDEST FOR HER?: “Getting away from jargon and vague wording, and really addressing in detail the problems of “modern nomads” and “renaissance souls”. Also in a sense honing it down to a subniche among this group, of people who were both creative, spiritual and social activist types who really want to make change both personally and globally.”

In a sense this experience was not just about “marketing” (a word I don’t particularly like) but about really identifying in what ways I can serve others and the planet, going to the edge of what is safe, and expressing in my own voice how I see things and what my personal vision is, and through this attracting my ideal clients, those creative, versatile souls who want to make a difference.

WHAT WAS MOST VALUABLE FOR HER? “Getting crystal clear on my niche and what their needs and problems were. Articulating what I had to offer which could help them with these challenges. It makes everything I do for my business, so much clearer now, not just the promotion of my services and products, but how I design what I have to offer, and what my clients needs are.”

WHAT KATIE HAD TO SAY ABOUT WORKING WITH ME: “Tad’s a wonder– every time I work with him, I’m delighted with the results, as I find he’s on the same page as me, warmly guiding me to find my authentic voice in promoting my services as a coach. Last, but not least, in my books, he’s a fun caring guy to work with, has a great sense of humour and a very creative approach.

I highly recommend his workshops and consulting services to my clients, and to any socially conscious practitioner, or business owner whose looking to market their services and products. If you have any questions about Tad’s work - I’d be happy to take a few minutes to answer them - you can call me at 416-656-6455 or email me at katiecurtin@mac.com.” - Katie Curtin, Life and Small Business Coach, Toronto, Ontario, www.katiecurtin.com

*

To read YOUR free copy of Katie’s 31 page Offer Makeover go to:
www.tadhargrave.com/katie.pdf

See the rest here:
Free “Offer Makeover Executive Summary” #1

The Green Collar Economy:
How One Solution Can Fix Our Two Biggest Problems - by Van Jones

* * *

This book explores the central question:

“Can we fight pollution AND cut poverty at the same time?”

If you want to believe that we can - keep reading.

I’ve met author Van Jones many times.

He’s one of the most inspiring and visionary people I know.

He travels around the country giving a powerful presentation weaving together issues that have - for decades - seemed at odds - social justice and the environment.

Van often jokes that, “this is the presentation Al Gore would give if he was black.”

Most environmental groups seem to be full of . . . white people.

And yet the communities most impacted by the issues are communities of colour.

Van argues passionately that ‘green collar jobs’ - trade jobs working in solar panels, wind energy etc. may be the very tool to get great jobs to those who need them most, cut poverty AND , at the same time, helping our environment.

He has just launched it and he’s hoping to sell 5000 of them by Tuesday, October 7th.

This would make publishing history.

Why?

No African-American author has ever written an environmentally-themed book that became a best seller. Strong sales will pave the way for other vital new voices in the environmental movement!

warmest,
tad
co-founder
e-sage

* * *

“Van Jones demonstrates conclusively that the best solutions for the survivability of our planet are also the best solutions for everyday Americans.” - Al Gore

NY Times columnist Thomas Friedman quotes Van Jones, saying, “It’s time to stop borrowing and start building. America’s number one resource is not oil or mortgages. Our number one resource is our people. Let’s put people back to work — retrofitting and repowering America.” (9/28/08)

Green For All founder Van Jones has proposed a powerful green cure. His first book, The Green Collar Economy, hits bookstores on October 7th.

Answers to these tough questions are between the covers of The Green Collar Economy:

* How can the next U.S. president create millions of new green jobs?
* How can we lower energy prices without drilling our shorelines and burning up our planet?
* How can the government help create energy independence – at practically zero cost to the tax payer?
* What is eco-apartheid? What is eco-equity?

Buy your copy of the Green Collar Economy now and find out the answers to these and other critical questions of our times. See how people’s lives are changing with green pathways out of poverty and into prosperity.

* * *

Please order it from your locally owned bookstore:

But here’s the amazon.com link for more info . . .

http://www.amazon.com/Green-Collar-Economy-Solution-Problems/dp/0061650757/ref=pd_bbs_sr_1?ie=UTF8&s=books&qid=1222903011&sr=8-1friends.

Here is the original:
BOOK: The Green Collar Economy - Van Jones

By Kent Harlan

But as companies confront a tight credit market coupled with lower than expected results, many CFOs are viewing asset based lending as a viable option in the financing tool kit.  Even successful companies with strong banking relationships can quickly fall out of favor with lenders and lose access to unsecured financing, especially if they’ve shown recent losses.    A few bad quarterly results doesn’t necessarily mean that a company is in bad shape, but stringent bank underwriting parameters can cause existing loans to be called and prevent the firm from qualifying for new financing.  A company facing such a scenario can use asset based lending (ABL) arrangements as bridge loans to pay off banks and provide liquidity until bank financing is achievable.

What is asset based lending?

An asset-based loan is secured by a company’s accounts receivable, inventory, equipment, and/or real estate, whereby the lender takes a first priority security interest in those assets financed.  Asset-based loans are an alternative to traditional bank lending because they serve borrowers with risk characteristics typically outside a bank’s comfort level.  These assets typically have an easily determined value.  The financing can take the form of loans to revolving credit lines to equipment leases and can range from $100,000 to $1 billion, depending on needs and circumstances.

How can ABL be a beneficial financing option?

Acquisition

To grow a business, a company may look to acquire a strategic partner or even a competitor.  Asset-based financing is often an efficient means to obtain funding for business acquisitions.

Turnaround Financing

Turnaround financing is often used by under-performing businesses that are not achieving their full potential.  In some cases, it is used for businesses that are either insolvent or on their way to becoming insolvent.  Asset-based lenders are accustomed to the bankruptcy process and asset-based financing is ideal for turnarounds because of its flexibility.

Capital Expenditures

Capital expenditure is the money spent to acquire and/or upgrade physical assets such as buildings and machinery.  Capital expenditure is also commonly referred to as capital spending or capital expense.

Debtor-in-Possession (DIP) Financing

Debtor-in-possession (DIP) refers to a company that has filed for protection under Chapter XI of the Federal Bankruptcy Code and has been permitted by the bankruptcy court to continue its operations to effect a formal reorganization.  A DIP company can still obtain loans–but only with bankruptcy court approval. DIP financing, which is new debt obtained by a firm during the Chapter XI bankruptcy process, allows the company to continue to operate during a reorganization process.  Asset-based lenders also provide exit financing or confirmation financing to companies coming out of bankruptcy.

Growth

Typically, as a company grows so does its need for financing.  Also, as a company’s collateral grows, its assets can strengthen its ability to borrow.  An experienced and creative asset-based lender can assemble a credit facility that can scale to grow with a company.

Recapitalization

Recapitalization is the process of fundamentally revising a company’s capital structure.  A company might recapitalize due to bankruptcy or replacing debt securities with equity in order to reduce the company’s ongoing interest obligation.  A leveraged recapitalization typically achieves just the opposite–by taking on a material amount of debt, the company increases its ongoing interest obligation but is able to pay its shareholders a special dividend.

Refinancing/Restructuring

When a company enters or exits a growth stage, refinancing or restructured financing may be key to creating a capital structure that better meets the needs of the company.  This type of financing is often used for market expansion, completing an acquisition, restructuring operations, or following a successful corporate turnaround.

Buyout

A buyout is the purchase of a controlling percentage of a company’s stock.  In a leveraged buyout (LBO), the acquiring company uses the minimum amount of equity to purchase the target company.  The target company’s assets are used as collateral for debt, and its cash flow is used to retire debt accrued by the buyer to acquire the company.  A management buyout (MBO) is an LBO led by the existing management of a company.

What are the advantages to ABL?

·        Tends to feature fewer covenants than other types of financing and those it does include tend to be more flexible.  Cash flow loans, by contrast, often have four or five covenants including total leverage, fixed charge coverage, and minimum net worth.

·        If a company is growing, the receivables and inventory it uses to secure the asset based loan is likely growing as well.  Thus, the company has a greater collateral base and can borrow funds to fuel its growth.

·        ABL instills discipline. Since the loans are based upon accounts receivable and inventory, the company is motivated to improve collections and complete the production cycle in a timely manner.

·       As mentioned earlier, ABL imposes less stringent covenants compared to cash flow loans.  These type of loans also provide better security to the lenders, which in turn allows them to grant more time to the borrowers to turn their company around in difficult times.

What are the disadvantages of ABL?

·        Since the level of funding is contingent upon the asset values on the balance sheet, there may not be sufficient liquidity.  Only asset rich companies would likely benefit, while many service companies would not.

·         Such a requirement can be difficult for the company.

·        Asset based lending tends to be more expensive than other types of financing, often three to five percentage points above traditional bank financing.

·        ABL runs counter to the thinking of a lot of CFOs who believe it is dangerous to tie short term assets to long term financing.

Although ABL is now a common financing tool, it is not for everyone.  It makes sense to explore all types of financing before deciding if asset based lending is the right choice.  The CFO must review the state of the company’s credit, analyze the firm’s asset structure, and its current debt load.  Asset based lending can provide the liquidity needed for the company to grow until less expensive bank financing is available.

Kent Harlan has been a CPA since 1984 and has provided consulting, accounting
and financial services to several industries.  He is the owner of Ozarks Capital Funding, LLC,
a Springfield, MO based company offering financing in the areas of accounts receivable factoring,
equipment leasing, asset based lending, and healthcare provider financing.
Website: http://www.ocflink.com

Excerpt from:
Asset Based Lending as a Financing Tool