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Newsletter

October 2021

2022 Funding Forecasts

 

The federal government created numerous stimulus packages and loan

programs under the CARES Act which significantly affect businesses of all

sizes. These loans played an important role helping the US economy to

weather the pandemic. As we near the beginning of 2022, consumer

demand remains high and will continue to rise. 

At the beginning of the coronavirus pandemic, the Small Business

Administration was charged with helping businesses survive the shutdown

period through the Paycheck Protection Program (PPP). The PPP loans

were intended to help companies cover payroll and other essential

operating expenses only. The goal of the PPP loan program was to keep

businesses open and keep people employed. The loans are for five years

with a fixed 1% interest rate and are forgivable if used for payroll and other specifically approved expenses. Payments on PPP loans have an automatic six-month deferral period; however, businesses must keep records of where PPP loan funds are allocated  to apply for loan forgiveness. Revisions to PPP loans in 2021 allowed small businesses with fewer than 300 employees to apply for a second loan and expanded the guidelines to allowing non-profit businesses to qualify for PPP loans.  As PPP funding has been depleted,  the SBA is no longer accepting applications.

Over 700 billion dollars in PPP loans were distributed to more than 11 million businesses during 2020 and 2021 and many of those businesses survive today because of PPP loans. As the economy is opening back up, PPP loan forgiveness and repayment are important considerations for businesses. PPP loans are viewed as debt by banks and are considered if your company applies for a new line of credit or a bank loan. An application from the Treasury Department must be filled out and returned to your lender to get your business’s PPP loan forgiven. Loans will be forgiven only if the majority of the loan was used for payroll and forgiven loans are tax-exempt. Thermo Credit can help you create a financial roadmap for your business to replace PPP funding as your company’s needs change.

Thermo Credit provides alternative funding solutions to PPP and other lending options. The pandemic prompted demand for funding solutions, and Thermo Credit is here to meet that demand. If your company has an outstanding PPP loan and requires additional funding, or for any funding needs, contact Thermo Credit to schedule a complimentary consultation. Thermo Credit is here to help your business build a financial roadmap to better funding and sustained growth. 

Resources:
https://www.jdsupra.com/legalnews/the-impact-of-ppp-loans-one-year-later-2990700/ 
https://www.forbes.com/sites/forbesfinancecouncil/2021/02/22/four-factors-businesses-should-consider-before-applying-for-a-ppp-loan/?sh=617567dc1d49 
https://www.uschamber.com/co/run/finance/tax-implications-of-paycheck-protection-loans 

 

Thermo Credit Meets the Needs of Our Clients

 


2020 changed the way business is conducted and undeniably, we have all

seen changes within our companies. Instead of meeting in person, business

is now handled by video conference.  More and more companies are

changing business models and creating remote workforces.  We are seeing

the gig economy evolve into a new level of entrepreneurship.  A global

pandemic slowed the economy in 2020, but the economy has been

revitalized in 2021. Thermo Credit has remained open and will continue

meeting client needs as we all adjust to the “new normal.”
 
Now is the time to set new goals and make plans to secure the growth of your company. Whatever your company’s financial goals, Thermo Credit is here to help achieve them. 
 
For the remainder of 2021 and looking forward to 2022, Thermo Credit will continue to attend trade shows and conferences, both in person and online.  We recognize each company is different and has unique needs, so we have adapted to ensure we can meet with our clients anytime, anywhere. We are committed to helping you achieve your growth goals, while you retain control of your company. 
 
Contact Seth Block EVP of Thermo Credit at 504-975-8599 to find out more about our funding options or visit www.thermocredit.com to schedule a complimentary consultation.. The global economic outlook is bright and now is the time to address your company’s near and long-term goals. Thermo Credit can help you meet those goals and create capital in your company, without giving up equity. 
 

 


Is Factoring Right for Your Company?

What you Need to Know.

 


Factoring is a type of business funding which creates an on demand credit

facility; meaning liquidity is immediately available without any additional

forms or bank approvals . With immediate access to funds, companies,

either established or early stage,  can gain a competitive advantage over

their competitors by being able to respond to market changes faster.  
 
One example of factoring is selling a business’ accounts receivable to a

third party in exchange for cash. Factoring is a powerful tool for

businesses because it creates immediate cash flow , much like a credit card, but with far more flexibility and at a significantly lower interest rate. Consider a small technology company needing to upgrade their IT to maintain a competitive edge.  Factoring could be the solution to meet their needs,  based upon the cash that is available. With factoring your business is freed up from billing cycle lag, where a customer is invoiced for net 30 and the reality is billing comes in at net 90. With factoring the company would immediately have the money they need and make their upgrades while waiting for invoices to be paid.
 
Factoring can also be used to cover payroll, which creates financial stability for employees and reduces employee turnover. In conjunction with a good business plan, factoring enables companies to leverage the capital already within their organization.  By doing so, growth plans can be addressed, acquisitions can be made, and your business will be ready for wherever your roadmap takes you. 

Since 2002, Thermo Credit has been providing factoring and a variety of other financial loans to businesses like yours. We will work with you to create the right credit facility to meet your business needs, all while you maintain control of your company. Thermo Credit is focused on where your company is going and your plan to get there, as opposed to a bank which is more focused on where you have been. Factoring is one of the many financial options Thermo Credit has to ensure your company is ready for what lies ahead.  Contact Thermo Credit and together we can review your financial roadmap and find the right solutions to meet your company’s needs.


Learn About Due Diligence in Our Latest Podcast

At Thermo Credit our goal is to provide businesses like yours with the best

funding information available. We want to help you raise capital in your company

without giving up equity. We also want to add value. That’s why we are proud to

announce our podcast series with The Funding University hosted by Seth Block,

EVP of Thermo Credit and nationally recognized financial industry expert.

Consider these podcasts your all access pass to the masters of finance,

entrepreneurial gurus, and funding experts. The latest episode features

Marc Gilbert, founder and president of Pinnacle Advisory Services. Marc has

spent his career providing due diligence expertise for lender support and

securing loans for businesses of all sizes. 

During the podcast, Marc Gilbert talked about how businesses can increase their

chances of being approved for a loan with the right due diligence. He advises companies to get organized and be prepared for an audit or review. This includes having contracts with vendors and suppliers readily available and up to date along with the presentation of month-to-month historical financials with the ability to explain them. Lenders will also expect to see projections (typically, three years or more) of where businesses are headed and why they have a competitive advantage. 

Marc urges everyone seeking help from lenders to be patient. It takes a ton of work and proper planning for companies to prove they need a loan. This is especially true as we head out of a pandemic and banks remain cautious. Of course, one golden rule to always follow is this: don’t borrow if you can’t afford to pay back the loan. Armed with the right information and proper due diligence, businesses can set themselves up for success. 

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