Thursday, May 10, 2012
US Online Retail Sales Rise 17% In 1Q
Online retail spending increased 17% in the first quarter of this year according to a recent Wall Street Journal article. East Bridge has seen a large increase in the number of online retailers contacting us looking for finance programs for their products or services. Putting together financing programs for online retailers brings new challenges to lending institutions. Online retailers typically have smaller margins than that of brick-and-mortar stores so it is more difficult for them to absorb the costs associated when offering programs to customers. In addition, because there is no face to face interaction with customers, lenders and retailers have to take extra steps to make the transaction simple and easy as well as preventing fraud.
East Bridge is working with a number of lending sources on new programs for jewelry financing, furniture, and specialty products.
Thursday, April 12, 2012
Another Lender Says Goodbye to the Healthcare Industry
Much like Capital One did a few years ago, Chase is discontinuing its use of their Health Advance program for the elective medical industry. This will have a widespread effect as they were one of the larger players in the industry. One of the industries most effected will be the dental industry. Chase did a lot of dentistry financing. You can read more about their exit on the American Dental Association website.
http://www.ada.org/news/6932.aspx
http://www.ada.org/news/6932.aspx
Thursday, June 9, 2011
East Bridge Funding Launches At Need Finance Program for Funeral Home Industry
New consumer finance program helps funeral homes better serve their families in time of need.
May 10, 2011 - Charleston, SC: East Bridge Funding (EAST BRIDGE) announces the launch of a new consumer finance program built exclusively for the funeral home industry. This is a nationwide program and is available now to most funeral homes. Using this program, funeral directors will be able to offer their families an at-need financing solution to help pay for some or all of the costs associated with a funeral.
“Funeral costs can be expensive and if a family has not financing pre-planned for the death of a loved one, many families find themselves unable to pay for the services that they want,” said Daniel O'Connor, Managing Director of East Bridge Funding. “Most funeral homes offer pre-need insurance, which a family can purchase prior to the time of death in order to cover most of the expenses associated with a funeral. If a family does not have this type of insurance, the expenses have to be paid for out of pocket and when a funeral can cost an average of $7,000 to $9,000 or more, it can put the family in a difficult spot. Historically, there haven’t been many at-need financing options for this industry which is why we felt compelled to bring a service like this to market”
The new program has an attractive APR for the debtor, is low-cost to the funeral home, and has a quick and easy application process. “We used a new lending relationship for this program and they have been great to work with,” continued Mr. O’Connor. “They understood what we where trying to do and share the same sense of duty about helping this industry. We have offered at-need programs in the past but they where difficult to implement and expensive to the funeral home to use so we didn’t have much luck with them.” Mr. O’Connor hopes that the industry will have success using the program going forward. “I think that with today’s economy, more and more families are going to need services like this and we want funeral homes to be prepared to help them when the situation arises.”
To use the program, funeral homes must be in positive financial standing and must have been in business for 2 years or more. It is required that funeral homes wishing to use the program submit documentation to substantiate this. Setup takes approximately 2-3 weeks.
About East bridge Funding
East Bridge Funding is a receivables management company offering unique consumer finance programs to businesses. Services provided include installment contract funding, accounts receivable financing, private label credit card programs, account servicing and bad debt collections.
For more information visit www.EastBridgeFunding.com or contact Daniel O'Connor, Managing Director at 843-971-7541, doconnor@eastbridgefunding.com.
May 10, 2011 - Charleston, SC: East Bridge Funding (EAST BRIDGE) announces the launch of a new consumer finance program built exclusively for the funeral home industry. This is a nationwide program and is available now to most funeral homes. Using this program, funeral directors will be able to offer their families an at-need financing solution to help pay for some or all of the costs associated with a funeral.
“Funeral costs can be expensive and if a family has not financing pre-planned for the death of a loved one, many families find themselves unable to pay for the services that they want,” said Daniel O'Connor, Managing Director of East Bridge Funding. “Most funeral homes offer pre-need insurance, which a family can purchase prior to the time of death in order to cover most of the expenses associated with a funeral. If a family does not have this type of insurance, the expenses have to be paid for out of pocket and when a funeral can cost an average of $7,000 to $9,000 or more, it can put the family in a difficult spot. Historically, there haven’t been many at-need financing options for this industry which is why we felt compelled to bring a service like this to market”
The new program has an attractive APR for the debtor, is low-cost to the funeral home, and has a quick and easy application process. “We used a new lending relationship for this program and they have been great to work with,” continued Mr. O’Connor. “They understood what we where trying to do and share the same sense of duty about helping this industry. We have offered at-need programs in the past but they where difficult to implement and expensive to the funeral home to use so we didn’t have much luck with them.” Mr. O’Connor hopes that the industry will have success using the program going forward. “I think that with today’s economy, more and more families are going to need services like this and we want funeral homes to be prepared to help them when the situation arises.”
To use the program, funeral homes must be in positive financial standing and must have been in business for 2 years or more. It is required that funeral homes wishing to use the program submit documentation to substantiate this. Setup takes approximately 2-3 weeks.
About East bridge Funding
East Bridge Funding is a receivables management company offering unique consumer finance programs to businesses. Services provided include installment contract funding, accounts receivable financing, private label credit card programs, account servicing and bad debt collections.
For more information visit www.EastBridgeFunding.com or contact Daniel O'Connor, Managing Director at 843-971-7541, doconnor@eastbridgefunding.com.
Thursday, December 9, 2010
What are we seeing going into 2011?
Not much changed in 2010 compared to 2009 with respect to the major banks' consumer financing programs. Banks are still limiting access to these programs for retailers and service providers. For larger companies and industries that have been able to hold onto their programs, they have seen a continued tightening of approval criteria for applying customers just as they did last year.
Fortunately 2010 brought a resurgence of alternative finance companies willing to step in and take advantage of a large business opportunity left open by the major banks and we believe the trend will continue in 2011. While these programs can be more expensive to the dealer due to the risk associated with today's economy, they are just as well capitalized as the big banks' programs of previous years and can offer just as many promotional programs and features (sometimes more).
What we are also seeing is a change in the attitude of retailers and service providers who seem more open now to doing business a little differently than before which allows companies like ours to get really creative in helping clients recapture some of the lost revenue they have experienced by not having adequate financing options in place for their consumers.
East Bridge Funding looks forward to 2011 as we will begin utilizing brand new capital sources which will give us the ability to create much more attractive terms for both the dealer and the customer. We wish all of our funding sources and clients a fantastic year and is excited to see who we can help next.
Fortunately 2010 brought a resurgence of alternative finance companies willing to step in and take advantage of a large business opportunity left open by the major banks and we believe the trend will continue in 2011. While these programs can be more expensive to the dealer due to the risk associated with today's economy, they are just as well capitalized as the big banks' programs of previous years and can offer just as many promotional programs and features (sometimes more).
What we are also seeing is a change in the attitude of retailers and service providers who seem more open now to doing business a little differently than before which allows companies like ours to get really creative in helping clients recapture some of the lost revenue they have experienced by not having adequate financing options in place for their consumers.
East Bridge Funding looks forward to 2011 as we will begin utilizing brand new capital sources which will give us the ability to create much more attractive terms for both the dealer and the customer. We wish all of our funding sources and clients a fantastic year and is excited to see who we can help next.
Saturday, October 11, 2008
Consumer Finance Programs in the Current Economy
With the credit markets tightening up everywhere, businesses are finding it difficult get customers approved for financing through their current consumer finance programs. Many of the big banks that are players in the retail finance industry are also players in the mortgage industry as well as other sectors that are not performing to par. This has forced them to tighten up on credit and take a much more conservative approach when deciding who to approve and in what markets they want to continue to offer financing in. This is bad news for businesses as less approvals means less sales and revenue and for many businesses no financing means NO REVENUE.
Fortunately there are solutions to this problem. This situation has created an excellent opportunity for smaller finance companies as well as indirect lenders and other debt buyers to step in and fill the void. Typically these institutions find it difficult to compete with the big boys on pricing so they typically take on the role of a 2nd look option for a business's customers. Many of these small finance companies and debt buyers aren't regulated the same ways as the big banks like GE, Citi, Wells Fargo, Chase, etc so they can remain versatile and can approve a wide arrange of credits even in tough economic times.
Using smaller finance companies and debt buyers will solve a businesses approval rate problems and can provide great consumer finance programs but not without a price. These institutions have a higher cost of funds then the big banks and usually higher overhead so the programs are more expensive in terms of discounts. However, it is far less expensive then having a customer walk out the door because you can't get the financing for them.
Our office has been flooded with calls from businesses experiencing consumer financing trouble, but fortunately we are able to help them. No one knows how long this credit crunch will last. The businesses that survive will be those who find acceptable alternative finance solutions until the big banks bounce back.
For further information about these alternative financing sources visit www.eastbridgefunding.com.
Fortunately there are solutions to this problem. This situation has created an excellent opportunity for smaller finance companies as well as indirect lenders and other debt buyers to step in and fill the void. Typically these institutions find it difficult to compete with the big boys on pricing so they typically take on the role of a 2nd look option for a business's customers. Many of these small finance companies and debt buyers aren't regulated the same ways as the big banks like GE, Citi, Wells Fargo, Chase, etc so they can remain versatile and can approve a wide arrange of credits even in tough economic times.
Using smaller finance companies and debt buyers will solve a businesses approval rate problems and can provide great consumer finance programs but not without a price. These institutions have a higher cost of funds then the big banks and usually higher overhead so the programs are more expensive in terms of discounts. However, it is far less expensive then having a customer walk out the door because you can't get the financing for them.
Our office has been flooded with calls from businesses experiencing consumer financing trouble, but fortunately we are able to help them. No one knows how long this credit crunch will last. The businesses that survive will be those who find acceptable alternative finance solutions until the big banks bounce back.
For further information about these alternative financing sources visit www.eastbridgefunding.com.
Wednesday, January 9, 2008
Good Receivables Management Article
I found this article posted on Article City and I thought it was well written. It explains real benefits of receivables management and why it is important.
----------------------------------
CFOs Need To Know the Fallacies Behind “Business as Usual” for Accounts Receivable
by: Kevin Calhoun
Introduction
The title, "CFOs Need To Know the Fallacies Behind 'Business as Usual'" is an installment of a series of white papers focusing on Business Process Improvement. This installment highlights:
•The vital role Accounts Receivable plays within a business environment
•Enormous hidden costs associated with generating Accounts Receivable documents
•Accounts Receivable vs. Receivables Management
•Proven real world solutions to eliminate these skyrocketing costs
The goal of this white paper is to enlighten CFOs that "Business as usual" is not always efficient business.
Defining Statement
"US businesses are paying over 200% too much per invoice transaction" - IDC
Business As Usual
Over the past decade, business has primarily focused on improving core business processes: Manufacturing, Distribution and Enterprise Resource Planning. In these areas, companies are rapidly automating processes, cutting costs and boosting productivity. At the heart of every business flows its lifeblood – CASH!
It can be argued that revenue generation is the most critical function of any company. Management of these receivable assets is a demanding task. Converting these receivables into cash though requires a substantial level of involvement.
The staff and processes that manage receivables assets:
•Manage 100% of a company’s revenue
•Act as a service touch point for virtually all customers. (Only Sales and Customer Service speak more with customers.)
•Incur thousand of dollars of hard and soft costs in processing receivables
•Injure or enhance customer service and satisfaction, leading to an increase or decrease in revenue
Management of the receivables assets is a complex task. It addresses the ramifications of practices outside the control of the responsible manager. It requires balancing opposing priorities. It is affected by the state of the domestic and global economy, interest rates, foreign exchange rates, banking regulations and practices, business laws, and other factors.
Excellence in receivables management is a combination of art as well as science; it involves business processes, technology tools, staff skills, motivation, corporate culture, change of behavior in customers and coworkers, organization structure and metrics, incentives, and flexibility to deal with changing external influences.
Management Expectation
Even though the process to manage receivables is very involved the management’s expectations for success are extremely high. If answered truthfully, most companies expect a Days Outstanding of 30 days or less and only tolerate a bad debt of less than one tenth of one percent. All of this is to be accomplished for a cost equal to about two or three tenths of a percent of revenue.
Are these desires real? Yes, but are they realistic? To find this out, we must analyze the environment that has been established for the management of our receivables. Kevin Craine, Author of Designing a Document Strategy said it best, "The way we manage documents says a lot about how we manage business." The question to ask is, "Does this traditional accounts receivable environment promote success or failure of the above desires?" As necessary as receivable processes are to a business, the associated costs are not.
Manual Steps for Invoicing
•Paper orders come into the company via mail or facsimile
•File folder is used to start order packet
•Order is entered in the system
•Paper order acknowledgement is mailed or faxed back to the customer
•Paper pick ticket is generated, then sent to the warehouse to pull the product
•Multiple copies of bill of lading is printed for shipment
•Signed copy of the bill of lading is returned to the company
•Paper invoice is mailed or faxed to the customer
•Order packet, which includes the customer order, order acknowledgement, pick ticket, signed bill of lading, and a copy of the invoice is physically filed in a filling cabinet that consumes valuable office space
Efficient Business
Today's business leaders are more compelled than ever to streamline their business processes in order to cut costs and improve efficiency. If an organization's core business is to produce product "X", its second line of business is to manage the documents that control the flow of that product. Unfortunately, market research firm eMarketer Inc. estimates that "84 to 98 percent of all business-to-business receivable processes still involve a large volume of paper costs." This means that organizations have achieved only a fraction of the opportunity to cut costs. These costs include:
• Printer wear and tear
• Toner
• Paper
• Pre-printed forms
• Envelopes
• Postage (which went up 5.4% in January 2006)
• Cover pages
• Facsimile charges
• Copies
• Filling supplies
• Cabinet space
• Office space
• Labor time to manage and move these invoices
Companies have the ability to make great economic strides by implementing a document management solution. By transforming paper based invoicing processes into electronic creation, distribution, and storage processes. Gartner Inc. believes that companies should expect to lower the typical cost of producing a paper invoice from $5 to $1.65. This would be achieved by reducing labor, postage, paper, office space and equipment costs.
Electronic Steps for Invoicing
• Order is received electronically at desktop and never printed
• No physical folder is need
• Order is entered in the system
• Order acknowledgement is automatically customized with an electronic form and electronically distributed back the customer
• Pick Ticket is generated with a bar code. When the completed copy is scanned back into the system it is automatically indexed
• A Bill of Lading is generated with a bar code. When the signed copy is scanned back into the system it is automatically indexed
• An Invoice is automatically customized with an electronic form and electronically distributed to the customer, then filed electronically
• There is no need for a physical filing cabinet.
• The electronic order packet includes the customer order, order acknowledgement, pick ticket, signed bill of lading, and the invoice. It is accessible to anyone with the correct security clearance on demand
10 Benefits of Receivables Management
• Improved cash flow
• Higher margins
• Reduced bad debt loss
• Lower administration costs
• Enhanced customer service
• Added value to existing ERP investment
• Improved control and compliance
• Enhanced security
• Smoother audits
• Reduce administration burden on sales force
What Are You Waiting For?
As you can see, fallacies behind the phrase "business as usual" are not immediately apparent. When companies take the time to look for ways to improve business, these problems are discovered, especially when it comes to Accounts Receivable.
Managing documents will make your business run more efficiently. Moving from a manual process to an electronic process leads to a better managed, more profitable business. What are you waiting for? Let us help you uncover your hidden document costs.
What Next?
Cornerstone Communications has helped over 800 CFOs streamline their document processes. We do not know your specific situation or if we can help you. Contact us today to explore how document management might affect your company's Accounts Receivable process.
----------------------------------
CFOs Need To Know the Fallacies Behind “Business as Usual” for Accounts Receivable
by: Kevin Calhoun
Introduction
The title, "CFOs Need To Know the Fallacies Behind 'Business as Usual'" is an installment of a series of white papers focusing on Business Process Improvement. This installment highlights:
•The vital role Accounts Receivable plays within a business environment
•Enormous hidden costs associated with generating Accounts Receivable documents
•Accounts Receivable vs. Receivables Management
•Proven real world solutions to eliminate these skyrocketing costs
The goal of this white paper is to enlighten CFOs that "Business as usual" is not always efficient business.
Defining Statement
"US businesses are paying over 200% too much per invoice transaction" - IDC
Business As Usual
Over the past decade, business has primarily focused on improving core business processes: Manufacturing, Distribution and Enterprise Resource Planning. In these areas, companies are rapidly automating processes, cutting costs and boosting productivity. At the heart of every business flows its lifeblood – CASH!
It can be argued that revenue generation is the most critical function of any company. Management of these receivable assets is a demanding task. Converting these receivables into cash though requires a substantial level of involvement.
The staff and processes that manage receivables assets:
•Manage 100% of a company’s revenue
•Act as a service touch point for virtually all customers. (Only Sales and Customer Service speak more with customers.)
•Incur thousand of dollars of hard and soft costs in processing receivables
•Injure or enhance customer service and satisfaction, leading to an increase or decrease in revenue
Management of the receivables assets is a complex task. It addresses the ramifications of practices outside the control of the responsible manager. It requires balancing opposing priorities. It is affected by the state of the domestic and global economy, interest rates, foreign exchange rates, banking regulations and practices, business laws, and other factors.
Excellence in receivables management is a combination of art as well as science; it involves business processes, technology tools, staff skills, motivation, corporate culture, change of behavior in customers and coworkers, organization structure and metrics, incentives, and flexibility to deal with changing external influences.
Management Expectation
Even though the process to manage receivables is very involved the management’s expectations for success are extremely high. If answered truthfully, most companies expect a Days Outstanding of 30 days or less and only tolerate a bad debt of less than one tenth of one percent. All of this is to be accomplished for a cost equal to about two or three tenths of a percent of revenue.
Are these desires real? Yes, but are they realistic? To find this out, we must analyze the environment that has been established for the management of our receivables. Kevin Craine, Author of Designing a Document Strategy said it best, "The way we manage documents says a lot about how we manage business." The question to ask is, "Does this traditional accounts receivable environment promote success or failure of the above desires?" As necessary as receivable processes are to a business, the associated costs are not.
Manual Steps for Invoicing
•Paper orders come into the company via mail or facsimile
•File folder is used to start order packet
•Order is entered in the system
•Paper order acknowledgement is mailed or faxed back to the customer
•Paper pick ticket is generated, then sent to the warehouse to pull the product
•Multiple copies of bill of lading is printed for shipment
•Signed copy of the bill of lading is returned to the company
•Paper invoice is mailed or faxed to the customer
•Order packet, which includes the customer order, order acknowledgement, pick ticket, signed bill of lading, and a copy of the invoice is physically filed in a filling cabinet that consumes valuable office space
Efficient Business
Today's business leaders are more compelled than ever to streamline their business processes in order to cut costs and improve efficiency. If an organization's core business is to produce product "X", its second line of business is to manage the documents that control the flow of that product. Unfortunately, market research firm eMarketer Inc. estimates that "84 to 98 percent of all business-to-business receivable processes still involve a large volume of paper costs." This means that organizations have achieved only a fraction of the opportunity to cut costs. These costs include:
• Printer wear and tear
• Toner
• Paper
• Pre-printed forms
• Envelopes
• Postage (which went up 5.4% in January 2006)
• Cover pages
• Facsimile charges
• Copies
• Filling supplies
• Cabinet space
• Office space
• Labor time to manage and move these invoices
Companies have the ability to make great economic strides by implementing a document management solution. By transforming paper based invoicing processes into electronic creation, distribution, and storage processes. Gartner Inc. believes that companies should expect to lower the typical cost of producing a paper invoice from $5 to $1.65. This would be achieved by reducing labor, postage, paper, office space and equipment costs.
Electronic Steps for Invoicing
• Order is received electronically at desktop and never printed
• No physical folder is need
• Order is entered in the system
• Order acknowledgement is automatically customized with an electronic form and electronically distributed back the customer
• Pick Ticket is generated with a bar code. When the completed copy is scanned back into the system it is automatically indexed
• A Bill of Lading is generated with a bar code. When the signed copy is scanned back into the system it is automatically indexed
• An Invoice is automatically customized with an electronic form and electronically distributed to the customer, then filed electronically
• There is no need for a physical filing cabinet.
• The electronic order packet includes the customer order, order acknowledgement, pick ticket, signed bill of lading, and the invoice. It is accessible to anyone with the correct security clearance on demand
10 Benefits of Receivables Management
• Improved cash flow
• Higher margins
• Reduced bad debt loss
• Lower administration costs
• Enhanced customer service
• Added value to existing ERP investment
• Improved control and compliance
• Enhanced security
• Smoother audits
• Reduce administration burden on sales force
What Are You Waiting For?
As you can see, fallacies behind the phrase "business as usual" are not immediately apparent. When companies take the time to look for ways to improve business, these problems are discovered, especially when it comes to Accounts Receivable.
Managing documents will make your business run more efficiently. Moving from a manual process to an electronic process leads to a better managed, more profitable business. What are you waiting for? Let us help you uncover your hidden document costs.
What Next?
Cornerstone Communications has helped over 800 CFOs streamline their document processes. We do not know your specific situation or if we can help you. Contact us today to explore how document management might affect your company's Accounts Receivable process.
Friday, December 7, 2007
Career Colleges often find it difficult geting financing for Sub Prime Students
Career Colleges and their enrollment rates have grown rapidly over the years and so has the need for creative student financing programs. Most schools face the same problem when it comes to financing students; that is, a good number of students have zero or very little credit or poor credit at the time they are applying for financing for a student loan. Banks, Financing, and other Lending institutions will not lend money to students with these kind of credit histories. So what other options do schools have to get these students financed?
Many schools have government programs that enable sub prime students to get the financing they need. Schools that don't have these government programs usually turn to in-house financing by where they place the student on a retail installment contract or promissory note to pay for the tuition in monthly payments. The school then tries to collect the payment from the student each month. These kinds programs are rarely successful because School Operators and Managers usually do not have any kind of receivables management experience making it hard to create the cash flow needed from the receivables.
Here are some tips for Schools that are using or plan to use an in-house financing program.
1. Make sure you are using the proper financing documents
This is VERY important. It amazes me to see schools with hundreds of thousands of dollars worth of loans on the books written on poor promissory notes or contracts. Make sure you use a solid retail installment contract, as well as a good credit application. The more information on the credit application the better.
2. Meet with an attorney
You need to know the laws in your state regarding lending including usury laws and collection laws. Meet with an attorney who specializes in finance and receivables. They can also advice you on what type of retail installment contract to use.
3. Hire a receivables management company to manage the portfolio.
Receivables management companies can service the portfolio and collect the payments for you for a nominal fee. And they will collect much better then you can. A school trying to collect receivables is like asking your banker to teach you massage therapy or nursing.
4. Strive for higher graduation rates.
Students who graduate are MUCH more likely to repay a student loan than students who don't.
5. Place student payments on EFT or Auto Debit.
This will draft the monthly payment directly out of the students checking account and Will result in much higher collection rates.
6. Make sure payments are affordable.
Try to keep the monthly payment between $100, and $200 per month.
7. Get a Down Payment
Aim for at least 10% of the tuition price. Students who are serious about their education who find a way to come up with the 10%.
Implementing these tips will defiantly increase the productivity or you student receivables portfolio.
Many schools have government programs that enable sub prime students to get the financing they need. Schools that don't have these government programs usually turn to in-house financing by where they place the student on a retail installment contract or promissory note to pay for the tuition in monthly payments. The school then tries to collect the payment from the student each month. These kinds programs are rarely successful because School Operators and Managers usually do not have any kind of receivables management experience making it hard to create the cash flow needed from the receivables.
Here are some tips for Schools that are using or plan to use an in-house financing program.
1. Make sure you are using the proper financing documents
This is VERY important. It amazes me to see schools with hundreds of thousands of dollars worth of loans on the books written on poor promissory notes or contracts. Make sure you use a solid retail installment contract, as well as a good credit application. The more information on the credit application the better.
2. Meet with an attorney
You need to know the laws in your state regarding lending including usury laws and collection laws. Meet with an attorney who specializes in finance and receivables. They can also advice you on what type of retail installment contract to use.
3. Hire a receivables management company to manage the portfolio.
Receivables management companies can service the portfolio and collect the payments for you for a nominal fee. And they will collect much better then you can. A school trying to collect receivables is like asking your banker to teach you massage therapy or nursing.
4. Strive for higher graduation rates.
Students who graduate are MUCH more likely to repay a student loan than students who don't.
5. Place student payments on EFT or Auto Debit.
This will draft the monthly payment directly out of the students checking account and Will result in much higher collection rates.
6. Make sure payments are affordable.
Try to keep the monthly payment between $100, and $200 per month.
7. Get a Down Payment
Aim for at least 10% of the tuition price. Students who are serious about their education who find a way to come up with the 10%.
Implementing these tips will defiantly increase the productivity or you student receivables portfolio.
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