All of the merchants I speak with are dealing with some if not all of these problems: Scarcity of supplies, lack of workers and higher prices. Even though that sounds bad these conditions are also creating opportunities for many businesses to grow and expand. Merchants who have good credit profiles can access new funds bolstering their balance sheets in a way that gives them competitive advantages.
Recent funding's I've closed included a Nebraska school looking to acquire new facilities, a Nevada manufacturer making extra raw materials purchases, a Florida roofer doubling lumber inventory and a NYC catering company purchasing freezer space.
The most attractive aspect of the alternative lender funding is that it won't interfere with any other elements of a company's debt profile. That is, all other loans including SBA, Bank lines, mortgages and equipment financing remain unaffected allowing the company to achieve a higher debt-to-revenue ratio. I regularly fund new, unsecured working capital into the balance sheets of all industries giving them the liquidity they need without messing up their existing bank covenants.
Today, when shortages and price increases are eroding profit margins it makes more sense than ever to use capital at a fixed rate to purchase goods and services whose prices are increasing. In some cases increases are even higher than the actual cost of capital - talk about making money using OPM "other people's money!" lol.
“I’ve been doing this 30 years and I’ve never seen markets like this,” Currie told Bloomberg TV in an interview on Monday. “This is a molecule crisis. We’re out of everything, I don’t care if it’s oil, gas, coal, copper, aluminum, you name it we’re out of it.”
It doesn't take an economics degree to understand simple math - when prices go up on everything except the cost of capital using the most leverage possible makes good business sense.
Call me for a quote!