He Found a Winning Secret!

The following article was written by Dan Lacy and is reprinted/republished with permission from the author. You can learn more about Mr. Lacy and his consulting firm Dynasty Builder by visiting his Website: http://dynastybuilder.com or his Blog: http://danlacy.com.

March 9, 2011

I Found a Winning Secret that Works for Cash Starved Businesses

We all know that one of the greatest fears that business owners face is the sudden shortage of cash at a critical moment: payroll, a big vendor discount or bank payment.  It is a very frustrating, maddening, stressful time because you have the receivables; but you don't have the cash. 

Since this is an issue that many business owners face sooner or later, I thought it would be a good time to reveal a solution I found.   Last year while at lunch at Olive Garden in Greenwood, I met a person that solves "cash shortages problems," his name is Jim Hayes.  Jim's company is Interface Financial Group.  He is local, makes all of his own decisions and funds his own deals.  He is the real deal, genuine, honest, and connected.   

Here is some basic information:

• Transaction size $3k to $100k
• No Mickey Mouse up front fees
• Pay back is typically 30 - 45 days
• Advance rate is up to 90% of an invoice
• Balance sheet condition doesn't make any difference - much different than a bank
• Time in business - not important
• Collateral - accounts receivable
• Cost - is higher APR than traditional banks; but it is very short term funding
• Industry - just about any

Here are some specific examples of how Jim helps business owners make more money and keep in good standing by solving their short term "cash" needs:

Service Installation Contractor.  This company pulls wire for new construction or retrofit IT installations.  The owner is a hard worker, honest and very busy.  His business is 2 months old and he is doing work all across the United States. He has funded his business with his credit cards; but his credit cards are now maxed out and there is a large late fee penalty for not making the payment.  He has no money, but does have $500k in accounts receivable.  He has a backlog of work he can't finance because he has no additional availability on his personal credit cards.  Work is waiting.  He is non bankable because he has only has been in business 2 months.  Jim advanced the money that bridged the gap between when the credit card payments were due and when the contractor received the money - about 3 weeks.  He saved the customer and funded additional work.

Contract Manufacturing Company.  This company has been in business over 20 years, does business with publically recognized businesses in the Midwest, but had a large operating loss last year and was not in good shape with his bank.  The company had a $45,000 vendor payment to pay to get the supplier discount.  Jim supplied the money; the company took the discount and was in very good shape with his primary supplier.  This company uses Jim weekly to fund cash flow shortages until he can get profitable again and regain a good line of credit with a lender.

Transportation Company.  This company is a contract shipper that owns their own vehicles and does work for large customers.  The bank was covering overdrafts and raking in nice fees from NSF charges.  Jim came in and funded the cash flow short-fall. The benefit for the customer: 1) relationship with bank improved, 2) able to take discount on fuel costs, 3) able to fund more business, 4) no more NSF charges.    

Jim has been helping central Indiana business for year 5 years.  Jim Hayes, The Interface Financial Group, 1101 West Superior Street, Kokomo, Indiana 46901. Phone 765-868-7030. 

To Your Business Success,

Dan Lacy, Founder, Dynasty Builder

Mr. President, I Don’t Think I Want Your Help!

Yesterday, President Obama issued a statement which included a warning to those evil oil companies about price gouging the public (that would be you and me). It all sounds so nice, warm and fuzzy that government agents will look out for our interest in this matter but I recall the reactionary government response to something similar in the 1970s under wanna-be-dictator Richard Nixon.

Nixon showed similar concern for us then when prices were rising due to the inflation that was created by his Treasury Department with the help of the so-called Federal Reserve Bank. The central bank is neither federal, it has no reserves and is not a bank. It controls the “money” supply. Today since our “money” is backed by nothing it is considered a fiat currency. All such currency eventually reaches its real value. ZERO!

Inflation of the currency is a topic you should understand. If you don’t click the link for an easy to understand lesson on economics: http://mises.org/daily/908.

Nixon imposed un-Constitutional “wage and price controls” on nearly everything resulting in shortages of those things since no one was going to produce a product and offer it at a loss.

Should the current President do something similar to protect us will we see a similar result? Perhaps so! I don’t think I want to go through that (or worse) (rationing as a result of shortages?) again.

Governments need to leave the markets alone. Their meddling only causes other problems which they are either too stupid to foresee or wish to occur as a result (you decide) and we pay for all of those unintended consequences ultimately with a loss of more of our liberty.

I would rather have protection from government like our Founders intended when they drafted a Constitutional Republic and included a Bill of Rights.

No Mr. President, I don’t think I want your help!

S&P is Late to the Table

Yesterday April 18, 2011, the S&P downgraded its outlook on the US debt based economy to “negative.” That begs the question, “Gee, where have they been the past (at least) 2 years?” It would seem that the rating companies are either behind the times or somehow bought off so as not to tell the truth about the US debt. Either way, they have demonstrated that their ratings are not to be trusted.

Our central bank, The Federal Reserve, is monetizing at least 50% and perhaps at high as 70% of our debt. No one knows for sure but this signals bad things for the USD. If and when the US Dollar loses its status as the ‘world’s reserve currency.” What would this mean for people who think they can live off the dollars they saved for retirement? Our debt is unsustainable in my opinion and the day of reckoning will soon be upon us.

What will replace our system when it all comes crashing down? And it most certainly will since no debt based fiat currency has ever lasted forever!

It would be wise to consider this a warning about a pending storm and find the right kind of shelter for you and your family!

Busy, Lazy or Uninspired

I’ve not added to this blog site in some time and I don’t think it’s because I’m too busy or lazy. I think it’s because I’m not inspired enough and not sure of the benefits.

Does anyone really read what I have to say? Not much! My friends already know what I believe and if there is anyone out there with beliefs like mine, then why read me when they can read Lew Rockwell, or Judge Napolitano? They say it more convincing and with more logic than I ever could.

Frankly, I’m tired of the powers that be trying to convince me that the recession ended almost two years ago when they wouldn’t even admit in the beginning that we were in one. Next, I’m tired of the the way the unemployment figures are manipulated and I’m sick of being lied to about how much inflation there has been. I guess you could say that, “I’m no friend of the government’s line on the economy.”

Is that pessimistic? I don’t think so. Since facing the real truth is positive so that you can do something about the storm you are in or find shelter for the one that’s coming.