A read of the text from the minutes of the Fed's last meeting indicates real spending on equipment other than high-tech and transportation seems to be rebounding after sizable declines over the previous two quarters. The following was excerpted from the text of the minutes from the Federal Reserve's Open Market Committee meeting on June 28: Outlays for nonresidential construction appeared to have remained robust early in the second quarter. Business spending on equipment and software in recent months appeared to be about unchanged from the first quarter, although the softness was largely confined to outlays for transportation equipment. Shipments and orders for items other than transportation moved up markedly in March and April after weakness in earlier months, and, even with the small declines in May, the data pointed to a healthy rise in outlays in the second quarter. In particular, real spending on equipment other than high-tech and transportation seemed to be rebounding after sizable declines over the previous two quarters. After a surge in outlays on computers in the first quarter, spending on high-tech equipment appeared to be rising at a more modest pace in April and May. In contrast, spending on transportation equipment declined significantly. Purchases of medium and heavy trucks dropped further in May, continuing to reflect the payback from sales that were pulled forward into 2005 and 2006 in anticipation of tighter emissions standards that took effect in January. New orders for trucks picked up in May, albeit from very low levels. Shipments data indicated that spending on aircraft dropped back from the elevated level in the first quarter. The downtrend in the cost of capital was likely curtailed in recent weeks by the rise in corporate bond rates. Nonetheless, firms retained ample cash in reserve to finance investment.




April 20, 2016


1.  Potential Sales:  Every potential Sale has Funding and cash Flow behind its decision.  Always make your prospect aware that you and or your organization has all types of Funding Options including Cash Flow sources that free up the operating capital to enable Debt consolidation and business expansion.

2. Conventional Loan Applicants:  Many commercial funding applicants will not qualify for conventional loan funding but even the most difficult even those with Tax Liens and Foreclosure at their door will qualify when structured - packaged and presented to unconventional funding sources such as MBS Financial.

3. Deal Driven not Credit Driven:  The MBS Financial underwriting of any commercial funding means taking into consideration many factors that allow the applicants story to be told and presented thereby considered for the merit of the deal rather than a fixed set of conventional requirements such as credit history, tax liens and other records that would otherwise automate a turn down.

4. SBA turn downs:  Just because your client has been rejected an SBA loan, don’t stop there.  Too often, after jumping through a barrage of hoops and after presenting everything possible to the Bank processing the SBA loan it is denied.  Without the applicant knowing that there are other authorized SBA loan processing centers that would have approved the deal; the applicant walks away discouraged with the impression that their credit or other unchangeable factor has been denied by SBA - It wasn't.  The Bank that denied the application may have other internal reasons for having lost interest in the industry of the applicant or had other reasons not related to SBA loan requirements.  Even more importantly, it should be noted that there are other lending sources that are interested in SBA loan applications that intend on funding the deal without the security of  SBA  80 -20 Government Program.  Keep an open mind and present your package with the passion of your client’s interest.

5. Vendors sometimes drop the ball on a potential equipment sale because their prospect feeds them the idea that even after every point was made as to the value of making the purchase; the client wants to think about it.  What the prospect is really saying is that they don't think their cash flow circumstances will warrant this transaction and this may well be the true issue.  But if you had brought this prospect the cash flow resolve they really need, they would actually be in a position to make a purchase so keep in mind your prospects cash flow situation may be the real underlying reason for stalling on the purchase that you know would actually benefit them.  Let your prospect know that you have access to all types of cash infusions and loan opportunity's even for those who would otherwise be turned down.

6.  Solutions Exist:  The solution to every problem exists even though we may not be aware of that solution at this time.  Bring your commercial cash flow problems to those associates that will take the time to (round table) ideas for a creative solution.  Conventional Loan Institutions are just Conventional.  The standards used by conventional funding organizations can not entertain Deal Driven prospective in
their decisions.

7.  Creative Perspective:  Your client needs funding and has presented their request for a specific funding instrument.  After an interview which discovers other intangible assets or resources the client is often pleased to realize options that they were unaware of previously.  Your client has Commercial Financial needs and although the first response to their request is paramount, we at MBS Financial believe the all your client’s options should be explored and provided regardless of the approval status.

8.  Stop commercial Repossession:  MBS Financial may have a financial solution that would offer your client’s creditor the cash to settle the account for less than the balance and offer a lower pay back solution that your client can afford.

9.  Problems are Opportunity’s:   Problems (usually traced to finance) are the very points we seek to address.  Problems are usually solved with money and your client is in business to earn money.  We at MBS Financial are interested in serving your clients business and seek to develop a long term relationship based on our ability to address and serve their problems. Your client’s success is our success.

10. You The Broker:  As a member of your business community or Professional with a desire to help your clients through difficult business needs, your input, direction or assistance with regard to your client’s financial health is more than business as usual.  Your opportunity to help those in need when others have turned their back is a crucial pivotal point in your relationships.  Your resourcefulness and time is what relationships are all about.  Your positive passion to enable those businesses around you should be rewarded and it is with both great financial remuneration and personal satisfaction.  The role you play in the lives that you have served with enthusiasm and encouragement is never forgotten and the respect that follows you will fuel the expansion of your business influence.  Grow because you intend to grow and help those who need your help.

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