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In the first quarter of 2017, five of the US’s largest banks actually deposited more money in the Fed ($12.9 billion) than they lent ($9.1 billion). Here is a link to the statistic: https://www.forbes.com/sites/greatspeculations/2017/06/13/loan-to-deposit-ratios-for-largest-u-s-banks-show-signs-of-recovery-in-q1/#18d8772412f4   Phil Gramm, former Chairman of the Senate Banking Committee, wrote an article on this back in 2015. The article still

Businesses often have a misguided view on the pros and cons between factoring receivables and venture capital (or private equity). Many entrepreneurs today truly misunderstand how to compare the cost of equity vs debt.  Indeed, this can be a daunting task, and often argued over, even by professionals having spent years in banking or private

MCA (Merchant Cash Advance) loans are marketed as a fast way to access cash. Online Lenders such as On Deck, Kabbage and others are pitching themselves as Small Business Lenders offering teaser rates as low as 9.99%. These so-called lenders are pushing something that can sometimes help entrepreneurs get out of a tough spot. However,

“Cash” is the energy that flows through a business giving it life. It’s like the electrical current that flows through a laptop or smart phone. Without the flow of electrical energy, the unit is non-functional. In a business, if cash does not flow in and flow out, the business is non-functional. When your customers pay you, it

Many FinTech companies have the goal of selling their product directly to consumers.  Most of them are financed by Wall Street related backers (hedge funds, private equity firms, venture capital firms, etc…). In fact, it is common knowledge that these types of investors will never invest heavily in anything that “does not have a direct

Financial industries such as Factoring, Asset Based Lending, and Purchase Order Financing make up a riskier segment of the Commercial Finance business. Companies in this business are always faced with difficult credit decisions. However, lenders are in the business of making these kinds of decisions. What about your average business today that gets requests from

Essentially characterized, a business visionary is a man who recognizes a need and begins a business to fill that void. Yet, this generalized definition gives little understanding into the character qualities and traits that influence a man to flourish as a businessperson. Before extinguishing your everyday employment to pursue the thought that has been percolating

Something I think about quite a bit that gives me frequent indigestion: ‘What is happening to small businesses across the United States?” The U.S. small business startup rate has been declining for decades. The Kauffman Foundation, referring to its own research and drawing on U.S. Registration (State) information, concluded that the number of small businesses