How to Use Innovation to Fuel Your Small Business“Real growth ONLY comes from innovation. Think about it. Brian Wesbury speaks most eloquently about this. “ - Trevor Morgan, President & CEO Why Bartering Can Be Your Untapped Revenue Source“Here’s an interesting take on an ancient idea. Though it has severe limitations which the article points out I do like the riff on entrepreneurs trying to find ways to get value from any unused capacity/inventory.” - Trevor Morgan, President & CEO What Others Are Saying About Us "We were helping to finance an acquisition for my customer. My customer needed a quick turnaround, so our bank called Prairie Business Credit to provide the working capital. This was critical to the acquisition so the customer could hit the ground running, keeping suppliers paid and raw materials readily available.
If we didn't have Prairie Business Credit, my customer would have needed to raise a lot more capital. Prairie Business Credit was very responsive and moved quickly to get the deal done. Our bank has had a long- term relationship with Prairie Business Credit for over 20 years. They are a trusted and known resource to our bank because they are very bright, responsive and they have the ability to move quickly to fund a deal." - Vice President Business Banking
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PRAIRIE BUSINESS CREDIT PROMOTES DIVERSEY Prairie Business Credit has announced the promotion of Ron Diversey. Diversey, currently Vice President, has been named Senior Vice President and Chief Credit and Operations Officer. Trevor Morgan, Prairie CEO, said: “Ron has worked for Prairie for 15 years and has been an invaluable member to our operations. He has continued to show an exemplary commitment to his role in assuring our firm’s future growth and success." In his new role, Diversey, who joined the firm in 2002, will be responsible for all operating and credit processes. Established in 1993, Prairie Business Credit serves both as a trusted financial resource and consultant to entrepreneurs dedicated to building their businesses and insuring their success. September's Features What Others Are Saying About Us
"We were helping to finance an acquisition for my customer. My customer needed a quick turnaround, so our bank called Prairie Business Credit to provide the working capital. This was critical to the acquisition so the customer could hit the ground running, keeping suppliers paid and raw materials readily available. If we didn't have Prairie Business Credit, my customer would have needed to raise a lot more capital. Prairie Business Credit was very responsive and moved quickly to get the deal done. Our bank has had a long- term relationship with Prairie Business Credit for over 20 years. They are a trusted and known resource to our bank because they are very bright, responsive and they have the ability to move quickly to fund a deal." - Vice President Business Banking Course Humor The practice putting green is much faster or a lot slower than the rest of the green on the course. On courses where the yardage is on the sprinkler heads, the nearest one will be 40 yards away, it will be blank, and it will turn on you as you're looking at it. - Henry Beard, Murphy's Laws of Golf CALCULATING THE BENEFITS OF FACTORING Will the benefits of factoring outweigh the cost? This is the most critical consideration. The cost of capital should be viewed as an investment which will advance the business, just as is a new piece of equipment. You would not spend money on a piece of equipment unless you were convinced that it would increase sales and profit or reduce costs. The cost of acquiring cash through factoring should be weighed in the same way. The immediate and ongoing availability of cash must help to increase sales and profit. The following exhibit summarizes the financial impact on an actual company that uses factoring to fund its sales growth. This company began with $1 million in total sales. By factoring, they were able to double sales to $2 million in the following year. They paid $40,000 in factoring costs, and increased their profit nine times, to $180,000. The factoring cost is 4% and $1 million of receivables were factored in the second year. August's Features What Others Are Saying About Us "We were helping to finance an acquisition for my customer. My customer needed a quick turnaround, so our bank called Prairie Business Credit to provide the working capital. This was critical to the acquisition so the customer could hit the ground running, keeping suppliers paid and raw materials readily available.
If we didn't have Prairie Business Credit, my customer would have needed to raise a lot more capital. Prairie Business Credit was very responsive and moved quickly to get the deal done. Our bank has had a long- term relationship with Prairie Business Credit for over 20 years. They are a trusted and known resource to our bank because they are very bright, responsive and they have the ability to move quickly to fund a deal." - Vice President Business Banking Prairie Business Credit has announced the promotion of Dylan Morgan. Morgan, currently Vice President, has been named Executive Vice President. Trevor Morgan, Prairie CEO, said: “Today’s promotion reflects the important contributions of a long term executive who will play a key role in assuring our firm’s future growth and success." In his new role, Morgan, who joined the firm in 2003, will be responsible for overseeing all new business development and sharing in all executive duties currently the providence of the President's office. Established in 1993, Prairie Business Credit serves both as a trusted financial resource and consultant to entrepreneurs dedicated to building their businesses and insuring their success. July's Features What Others Are Saying About Us "Prairie Business Credit provided the additional capital we needed to fund my growing portable restroom business by purchasing our Account Receivables. Prairie performed their due diligence, and over the 2 years that we worked with Prairie, I found the process to be simple and the cost was fair. The subordination between the bank and Prairie was straightforward. I recommend Prairie because they are fair, honest and easy to work with. You feel like you are working with a traditional bank." - Owner of Portable Restroom Business 1. Big Growth Without Giving Up Equity When you finally get that sale that can take your company to the next level, you don't need to take on a partner. Get the working capital you need by factoring. 2. Better Cash Flow Management Do you find yourself anxiously awaiting at the mailbox because you need that check in the mail? By factoring your receivable, you get cash when you make a sale. Prairie Business Credit will wait for the sale and smooth out your cash flow. 3. Reduce Bad Debt Don't get caught selling to a company without the means to repay you. Prairie Business Credit will help you determine who is credit worthy and who is not. 4. Improve Credit Rating Paying your vendors on time will help you earn a better business credit rating. It will also instill confidence in your vendors, so they will offer you better credit terms. 5. Take Advantage of Supplier Discounts If you paid your vendors faster, would they give you a discount? With the cash available from factoring, you may be able to negotiate better prices from your suppliers. 6. Capture New Sales Opportunities Have you ever walked away from a sale because you thought you didn't have the cash flow to support it? Realize those profits and take on those new sales with improved cash flow through factoring. 7. Slow Turning Receivables Sometimes receivables aren't paid because of clerical errors on your end. Let Prairie manage the receivables process and remove all the hurdles between you and faster paying invoices. 8. Too New for the Bank Many times banks won't lend to newer businesses. That doesn't mean your newer business doesn't need working capital. By factoring your accounts receivable, even startup companies can get the working capital they need from Prairie. 9. High Customer Concentration on Receivables Sometimes that great new opportunity leads to a customer concentration. Many lenders and factors shy away from that situation. Prairie can still get you the working capital you need, even if your sales are concentrated. 10. Cost Savings on Collections and Administration You can leverage Prairie's expertise and efficient processes to focus your workforce on other tasks in your business. Instead of hiring more clerical staff to manage your growing sales, let Prairie take that on for you. June's Features What Others Are Saying About Us "Prairie Business Credit provided the additional capital we needed to fund my growing portable restroom business by purchasing our Account Receivables. Prairie performed their due diligence, and over the 2 years that we worked with Prairie, I found the process to be simple and the cost was fair. The subordination between the bank and Prairie was straightforward. I recommend Prairie because they are fair, honest and easy to work with. You feel like you are working with a traditional bank." - Owner of Portable Restroom Business You Need Cash for Growth So how do you, a young, or recovering entrepreneur, borrow enough money to capture a great new sales opportunity? You have no capital and not much of a track record other than your great resume and experience and a pile of purchase orders? You have a great product with excellent margins and a big backlog that should lead to profitable growth, but only if you can get immediate access to working capital to finance the new sales. You're being told that you’re just too new or it's too early in the recovery stage to interest the bank. In a year you might be a perfect bank customer, but you’ve got to seize this big sale in order to build your balance sheet so that you’re bankable. How do you get over this gap? How do you prove you’re bank worthy? Since 1993, we’ve helped our clients seize special sales opportunities, and graduate to a long term bank relationship. We have never stopped providing working capital to young or recovering companies that have real purchase orders in hand. Prairie Business Credit will finance you until you’re bankable. We’ll participate with the banker to smooth the transition if they are willing. We’ll be sure you don’t stumble over selling to bad customers since we know a lot about credit evaluation. We’ll stick around through the inevitable and unpredictable bumps on your way to becoming bankable. It’s what we’ve done consistently for our clients for the past 24 years. Prairie will finance your big run up in sales and profits and the prospective banker can get the deposits. When the banker wants the lending relationship, it’s theirs. Prairie has no contract term or monthly minimums. We create no barriers to your being banked or enjoying your success. We’d like to manage your receivables forever, but that’s up to you. If you want help at this most critical juncture, call us. May's Features What Others Are Saying About Us "Prairie Business Credit provided the additional capital we needed to fund my growing portable restroom business by purchasing our Account Receivables. Prairie performed their due diligence, and over the 2 years that we worked with Prairie, I found the process to be simple and the cost was fair. The subordination between the bank and Prairie was straightforward. I recommend Prairie because they are fair, honest and easy to work with. You feel like you are working with a traditional bank."
- Owner of Portable Restroom Business Golf Humor Lonnie: I'll never play golf with my banker again. Terry: Why not? Lonnie: Every time I yell "Fore," he yells "Closure." - Hal Linden, LOL Golf - A Duufer's Delight Of Jokes, Quotes & Anecdotes What Others Are Saying About Us "Prairie Business Credit provided the additional capital we needed to fund my growing portable restroom business by purchasing our Account Receivables. Prairie performed their due diligence, and over the 2 years that we worked with Prairie, I found the process to be simple and the cost was fair. The subordination between the bank and Prairie was straightforward. I recommend Prairie because they are fair, honest and easy to work with. You feel like you are working with a traditional bank." - Owner of Portable Restroom Business April's Feature Take On The Law Of Numbers With Grit And Fundamentals This is a great article that gets to the heart of what a small business must overcome to succeed. The part about capital reminds me of one of the first purchase order finance deals I put together. A newly minted entrepreneur (who had been running a division for a Fortune 500 company prior to this new adventure) was sitting at my desk with a $1MM purchase order in hand from a reputable retailer. He needed funds in less than 2 weeks or he would lose the sale. I asked him "Dave, how did we get here?" His answer was a common one for small business owners. He thought if he just got the purchase order, he could borrow the money from a bank. In some cases that is true, but for new or thinly capitalized businesses it is not. We ended up getting him the funding he needed and he was able to deliver on this purchase order, but it was a great lesson for both him and me about the capital challenges small businesses face. - Dylan Morgan, Vice President For questions and inquiries, please contact Trevor Morgan, Founder & CEO, Dylan Morgan, Vice President, or Nick Keseric, Business Development.
Prairie Business Credit 24W500 Maple Ave Suite 208 Naperville, IL 60540 Phone: 630-717-1155 Fax: 630-717-1188 Email: info@prairiebiz.com Prairie Business Credit 250 E. Wisconsin Ave. Suite 1800 Milwaukee, WI 53202 Phone: 414-220-9775 Fax: 414-220-9447 Email: info@prairiebiz.com What Others Are Saying About Us "The experience I had with Prairie was nothing but positive. I owned a school bus company some years ago and was in a position with a very slow paying customer. Prairie was easy to work with, they understood my needs and the transactions were simple. I would recommend them to my business clients and I have already done so. I really appreciate the personal touch." - Previous Client and Current Referral Source March's Features
February's Feature What Others Are Saying About Us "The experience I had with Prairie was nothing but positive. I owned a school bus company some years ago and was in a position with a very slow paying customer. Prairie was easy to work with, they understood my needs and the transactions were simple. I would recommend them to my business clients and I have already done so. I really appreciate the personal touch."
- Previous Client and Current Referral Source Prairie Business Credit is starting 2017 with a new look and website! What our Friends Are Saying About Prairie Business Credit "I was unable to finance a large increase in sales and related increase in payroll expense for a good customer, a contractor. I reached out to my business partner Dylan to discuss alternatives. Dylan immediately advised my customer that the best way to solve this problem would be to use friends and family rather than factoring. My customer took Dylan's advice. He called me five weeks later to say thanks. They appreciated that I found an alternative. Prairie Business Credit, and Dylan specifically, are a valued business partner of mine." - Vice President of a National Bank
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Topics
Purchase Order Financing and Factoring How Does Factoring Work? Calculating the Benefits of Factoring When Should You Consider Factoring? Factoring in Five Simple Steps 13 Week Cash Flow Forecast Businesses Need to Protect Their Cash Flow During the Pandemic The Cash Gap Our Second Client Defrauded Us - How it Changed the Way We Do Business Is Prairie Business Credit Expensive? How Much Do They Charge? Top Ten Reasons to Factor You Need Cash for Growth Who are Good Candidates for Factoring? Our Number One Goal is that Our Clients Leave Us A Bridge to Where? In the Age of the Internet, We Still Do Business Face to Face Credit Checks Cash Management Two Fundamental Principles When Giving Your Customers Payment Terms Team Up with a Factor To Earn Lifelong Business Customers Make No Little Plans Prairie Business Credit Promotes Morgan Prairie Business Credit Promotes Diversey Categories |