Commercial Finance Association Conference Recap

By Mike Semanco, President, Hennessey Capital

For those professionals involved with the commercial finance industry, the place to be in mid October this year was at our annual conference in downtown Chicago.  The weather was great and the time spent at Navy Pier for the opening reception was filled with talk about what a difference a year makes in the credit world.

The attendance was up and I am not sure if it was due to the keynote speech by President George W. Bush or that we had a wave of bankers who were in attendance this year who could not make it in 2009 for a whole host of reasons.

One common theme throughout the week was the discussion on how factoring and asset-based lending were the products used by small and midsized businesses to help them get through the credit crunch.  Even with the credit market showing a slight sign of easing, ABL and factoring is still the time tested way for businesses to finance their working capital needs, whether traditional means are available or not. 

Panel discussions included insight on the current state of the debt and equity markets, financing for entrepreneurial lenders, the impact of global economics and technology trends within the commercial finance industry.   It is apparent that credit remains very tight for small and medium sized companies, while there is a lot of money available to large corporations who have a broader choice of borrowing options.  To achieve long term success, lenders must stay disciplined in following their credit and process guidelines.  Technology is playing an increasingly important role in our industry, from marketing to sales management as well as in operational efficiency and customer service. 

An opening session with former President Bush and a lunch session on customer and employee loyalty by James Kane, were highlights to the event.

Everyone at the conference agreed the economy is still fragile.  The lending community is confident the worst is behind us and there will be opportunities to lend companies the money they need in this difficult environment.  There is no question factoring and asset-based lending will remain a critical solution for businesses needing working capital.  I have been in this industry for 17 years, which is a short period of time compared to other seasoned operators.  One thread we all share is the passion to help entrepreneurs obtain the financing they need to grow their business.  The convention provides a fabulous opportunity to renew acquaintances and make new ones.  Sharing stories of successes, challenges, and experiences that we meet along our journeys is what really helps us connect as an industry. What a great industry it is!

How To Get Chummy With Your Banker

“How To Get Chummy With Your Banker” from Inc. sheds light on an issue that many small business owners are grappling with - maintaining a good relationship with their banker in a tumultuous economic environment. From our perspective, the most important aspect of the relationship is communication. That means sharing  both the good and bad news, on both sides of the equation - the banker and the business owner.  If you build a relationship with your banker and treat them as a trusted advisor, assuming they are the type who wants to help, it will be easier to communicate the bad news and work through challenges.  The banker also has the advantage of working with many different companies and industries and can share insight which may be able to help a businesses specific situation. The lesson? Maintaining an open and honest relationship with your banker will allow him or her to provide you support and solutions during difficult times and be proactive in identifying ways to help you grow when times are better.  The banker/entrepreneur relationship is like any other - one based on trust and integrity will prove to be more successful.

Where To Turn When Your Bank Credit Line Shrinks, Part 1: Asset Based Lending

In today’s credit crunch, many business owners are having a tough time finding as many options for needed capital as they once did.  The latest topic of the show is “Where to turn when your bank’s credit line shrinks.” This is part one of two, and covers asset based lending.

During this discussion, our interviewer rejoins Mike Semanco, the president of Hennessey Capital.

In the first part of the show, Mike explains what the credit crunch is, and how it affects your business. Mr. Semanco goes on to explain what asset based lending is, and how it can help business owners. This episode is wrapped up with a discussion on other options for financing, in case asset based financing is not the best option for you. Overall, business owners should hopefully find this discussion very informative and helpful.

Audio clip: Adobe Flash Player (version 9 or above) is required to play this audio clip. Download the latest version here. You also need to have JavaScript enabled in your browser.

Download the MP3 File | Click To Subscribe in iTunes

Download the Transcripts: Plain Text | PDF