ss_blog_claim=bd50edc517cf0b7549fe6b5f63b6b5f8 The SLS Business Finance Blog: March 2009

Wednesday, March 11, 2009


For all of our long time subscribers...we have moved to our own home on the web. We are no longer renting space, but have purchased a home.


Visa Ahead Of The Curve

Strong Beginning To 2009

Just when you thought it was all doom and gloom in an ailing economy, a beacon of light. Defying economic trends, Visa reporting a net operating revenue of $1.74 billion in 2009. This is a 17% increase from its $1.49 billion at this point 2008. This figure is the result of positive growth in all categories. The largest sector being international transaction revenues, $500 million to be exact. The company anticipates positive net revenue growth for all of 2009. There is however, talk that 2010 could bring declining economic conditions in the credit card industry. Many analysts feel that the implosion that has wreaked havoc on the economic front will indeed spread to the credit card sector. As more and more people rely heavily on credit just to get by, this to could result in the house of cards tumbling. In the short term.....Visa stands strong in a turbulent market.

Southern Lending Solutions

Monday, March 9, 2009

New Program Announcement: Unsecured Business Lines of Credit

Readers of this blog know that I believe in it being informational and rarely, if ever, do I talk specifically about our services and programs. Today I have to make an exception and talk about a program returning into the fold of our offerings at Southern Lending Solutions.

The reason for this exception is due to the fact that this program addresses the primary problem for small businesses today, access to credit and credit lines.

So I am pleased to announce:

The Southern Lending Solutions Unsecured Business Line of Credit Program

This program is a revolving line of credit and as we all know these days, credit is important to the growth and sustenance of small and middle market companies.

Who qualifies:

1) A Credits (generally 700 or higher FICO scores)
2) 2 Years Time in Business (from date of incorporation)
3) Clean D&B Report (if one is listed for the company)

What's it cost?

A range of Prime plus 5 to Prime plus 12, depending. Currently, Prime is @ 3.25% so this variable rate starts at 8.25%.

If all 3 apply, then an application is all that's required. No tax returns, No business financials, No personal financials and no pre-existing relationships with the funders or banks are required.

A great program where everyone who qualifies should jump on board regardless of need, since as we have seen to need credit and not have it can devastate a business.

Southern Lending Solutions

Wednesday, March 4, 2009

Even More on Collateral

So Collateral affects pricing. How do we lend against it?

There are 2 circumstances where we lend against collateral. They are:

1) Use of additional collateral to back a lease for a new piece of equipment
2) Refinancing the collateral to generate cash (known as a Sale/Leaseback)

Clients can use existing collateral to back a new lease when they want to bring the risk to the funder down, and therefore the price or when the equipment is sitting there not being fully utilized. More often then not, existing collateral is used to back a new lease because the credit is weak and its the only way to get the deal done.

Refinancing existing collateral can occur when credit is weak or when its strong but in either case, usually it means there's a cash need in the business. A business that is equipment rich and cash poor. When credit is strong and there's extra collateral, then that's 2 strong C's and that equates to lower prices.

Southern Lending Solutions