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What Every Factoring Company Should Know About OFAC May/June 2014 • VOL 16 / No A PublicAtion of the internAtionAl Factoring AssociAtion May/June 2014 • VOL 16 / No. 3 sales and marketing issUe ALSO INSIDE: Where Does Your Factoring Company Fit in the Marketplace? Are Your UCC Financing Statements Giving Away Your Customer Data? What Every Factoring Company Should Know About OFAC www.healthcapitalinvestors.com May/June 2014 • VOL 16 / No. 3 WhErE Does YOUr FactOrING COMpANY FIt IN thE MArKEtplace? By Raul Esqueda ArE YOUr UCC FINANCING StAtEMENtS GIvING Away YOUr CUStOMEr DAtA? By Jen Matthews WhAt EvErY FactOrING COMpANY ShOULD Know AbOUt OFAC: A practical GUIDE By Tony Furman MY ifa By Aaron Furrer WhAt’S New At IFA columns sales and marketing YOUr bDO COULD bE YOUr Mvp By Janette Bankston legal factor A Book rEpOrt ON AmericAn FActoring LAw By Steven N. Kurtz, Esq. small ticket factor thE New FUNDING SUpply and DEMAND By Don D’Ambrosio ADVERTISER INDEX 3i Infotech ............................................................ 12 Health Capital Investors, Inc. ................................ 2 Bayside Business Solutions, Inc. ........................... 11 International Factoring Association .........13, 15, 27 Capital Software .................................................. 25 RMP Capital Corp. ............................................. 17 FactorFox Software, Inc. ..................................... 27 RMP Trade Credit LLC ......................................... 8 FactorsNetwork ................................................... 16 Sentinel Portfolio Solutions .................................... 5 First Corporate Solutions ..................................... 28 Tax Guard, Inc. ................................................... 19 FirstLine Funding Group ....................................... 9 Utica Leaseco LLC ............................................... 25 Gibraltar Business Capital ..................................... 9 The Commercial Factor | May/June 2014 3 from the executive director Numbers don’t lie. The IFA annual conference has grown to become the number one industry event for the factoring and receivable finance industry. The IFA convention is now the largest THE INTERNATIONAL and most relevant event of the year, and as the attendees FACTORING ASSOCIATION of San Francisco conference can attest to, it has become 6627 Bay Laurel Place, Ste C the must attend event of the year. Thank you to everyone Avila Beach, CA 93424 that attended and helped the IFA achieve this unprec- MAILING: PO Box 39 edented growth. Avila Beach, CA 93424-0039 800-563-1895 I am also pleased to announce the addition of four new members to the IFA’s Advisory Board. The board serves EXECUTIVE DIRECTOR a two year term and assists the IFA in broadening the public understanding of the Bert Goldberg uses and benefits of factoring. They also help design training programs and foster PUBLISHED BY new ideas to benefit the IFA’s member organizations. The International Factoring Association The new Advisory Board members are: EDITOR/DESIGN & GRAPHICS R&W Publishing Associates, Chelsea Kirtley Mike Hilton, Co-President, Brookridge Funding [email protected] • 727-450-9870 Niko Kluyver, Partner, FactorPlus Marc Mellman, COO & General Counsel, Tempay, Inc. ADVERTISING SALES R&W Publishing Associates W. David Tull, Chairman, Crestmark Bank [email protected] • 610-213-9105 Advisory Board Members returning for the second year of their term are: Tina Capobianco, Vice President, JD Factors ADVISORY BOARD Steve Hausman, President, Advance Business Capital Tina Capobianco Julie Regenold, President, TradeGate Finance, Inc. Vice President of JD Factors Stuart Rosenthal, Executive Vice President, Prestige Capital Steve Hausman Due to the number of complaints that have been received, both the IFA and the President of Advance Business Capital AFA have voted to bar Merchant Cash Advance companies from membership in Finance, LLC each organization. The boards of both associations felt that the model for this type Michael Hilton of financing has changed and that there are a number of MCA companies that are Co-President, Brookridge Funding not operating in an upfront manner. Given that the goal of both organizations is to Niko Kluyver assist the factoring community, we found it best to dissociate ourselves from this Partner, FactorPlus type of financing. Marc Mellman COO & General Counsel, TemPay, Inc. The AFA has commissioned a survey to determine the effect that factoring has on the U.S. economy. The survey will be sent to U.S. based factors during the next Julie Regenold month. The survey has been designed to take very little time of the participants. President of TradeGate Finance, Inc. Most of the information necessary can be extracted from your software systems. Stuart Rosenthal The three main software providers, Bayside, FactorFox, and 3i Infotech, have Executive Vice President of Prestige Capital Corporation created extraction programs that can be run against your data. Information extracted will be related solely to the amount of business being done by geographic W. David Tull area. There will be no identifying information regarding individual clients. We Chairman, Crestmark Bankå hope that all U.S. based factors will assist us in completing this important survey. The IFA is offering a variety of classes this year to help you and the staff in your The International Factoring Association’s (IFA) goal organization learn and grow. We are offering new courses as well as some returning is to assist the factoring community by providing favorites. We have also added a number of online courses covering a variety of information, training, purchasing power and a re- topics. You can find a listing of the upcoming courses on page 23 of this issue, as source for factors. The IFA provides a way for com- mercial factors to get together and discuss a variety well as on our website. Check back often, as we are constantly adding new courses! of issues and concerns about the industry. Member- Regarding my injury, I just passed the two year mark, and everything is going well. ship is open to all banks and finance companies that perform financing through the purchase of invoices Although a Spinal Cord Injury (SCI) is not something that I’d wish upon anyone, or other types of accounts receivable. I’ve reached a point where it doesn’t keep me from doing anything I want to do. I attended Project Walk last month, which is a rehab facility geared towards SCI The Commercial Factor is published bi-monthly by the International Factoring Association. To sub- patients. I keep pushing to try to achieve the maximum results that I can, given the scribe, please email [email protected]. constraints that I have. The Commercial Factor magazine invites the submis- sion of articles and news of interest to the factoring industry. For more information on submitting articles or advertisements, email news@factoring. org, or call 800-563-1895. The views expressed in the Commercial Factor are those of the authors and do not necessarily repre- sent the views of, and should not be attributed to, the International Factoring Association. 4 The Commercial Factor | May/June 2014 INDUSTRY NEWS focus on making non-dilutive growth Utica Leaseco Completes capital available to software and technol- $1,400,000 Sale/Leaseback ogy companies across the US. Gibraltar hired Mark Sperling, who brings more The client is a marine dredging services than 15 years of financial and business company headquartered near Baton development expertise, to serve as Vice receivable due from small to medium Rouge, Louisiana. Utica relied on the President of this new group. importers. company’s equipment as the sole collat- eral for the transaction. King Trade Provides $1 Million Paragon Financial Group Provides Facility for Manufacturer of Four New Factoring Lines of Credit Gibraltar Business Capital Funds for $2,400,000 $500,000 Deal in Less than One Customized Emergency & Surveillance Vehicles $750,000 to a commercial cleaning Week; Closes $1 Million Credit company in Miami, Florida Facility with Emerging EDI King Trade Capital announced the recent Company; Launches Gibraltar funding of a $1 million government $600,000 to a heating repair company Technology Finance contract finance facility for a New Jersey in New Jersey based manufacturer of customized emer- Gibraltar Business Capital completed gency and surveillance vehicles. $250,000 to a food distributor in a record-setting working capital loan, Miami, Florida funding a $500,000 deal for a small, Capital Business Credit Helps Wisconsin-based trucking company in $800,000 to a security guard company Extend Terms for Importers less than one week. in Naples, Flordia Capital Business Credit developed a prod- Gibraltar secured a custom revolving uct called Supplier Early Payment or SEP, Universal Funding Provides $1.9M $1 million line of credit and term loan which allows importers to extend credit in Factoring Facilities in April to help support a Boston-headquartered for up to 90 days on open account credit Universal Funding Corporation brought electronic data interchange (EDI) terms. Exporters in China and Hong on eight new clients in April. These new software manufacturer whose product Kong receive customer credit protection accounts include a $60,000 factoring integrates accounting systems between and immediate cash for receivables upon facility for a security personnel firm in trading partners. shipment and importers receive extended Florida, a $50,000 factoring facility open account terms and payment flex- Gibraltar Business Capital
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