Puerto Rico Takes a Hit to the Head

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Spring 2016

Nancy and I own Puerto Rico bonds, which have been in the news a lot recently. Some bonds are in default, and other payments are due which Puerto Rico says it will not be able to make. For a reason that no one seems to be able to determine, Puerto Rico is not eligible for bankruptcy restructuring, as other government subdivisions are. The territory has gone to the Supreme Court to ask for relief.  Hedge funds own the bonds, as well as many ordinary investors who want to recover as much as possible. Because Puerto Rico is a US territory, not a state, the bonds featured, triple tax free (US, State, and Municipal) income, making them quite attractive before now.  We have some of the better ones, still rated investment grade and insured.

Nancy and I planned a trip to Puerto Rico to get a feel for the economy and the people while hoping to enjoy ourselves as well. There is reasonable and plentiful air travel, and one does not need a passport.  Puerto Rico dangles outdoor activities, shopping, sightseeing and history as attractions.  The island was discovered by Columbus in 1493 and served as a key port in the Spanish new world.  San Juan, the capital, is a charming pastel colored city which dates from the 1500’s.  We walked all over the quaint streets; there were plenty of police, and we felt quite safe going anywhere.

Almost uniformly, anyone coming in contact with tourists was super nice.  I had hoped to practice my marginal Spanish, but everyone we met spoke excellent English. Puerto Ricans get the message- keep the tourists happy and they will keep coming.  The bad news is that other Caribbean islands also have nice weather, and try hard to attract tourists.

There were quite a few empty buildings throughout Puerto Rico. I picked up the local publication “Caribbean Business” for additional insight.  Puerto Ricans are rightly concerned about legislation coming out of Congress to resolve their debt. What’s proposed is an oversight board dominated by non- Puerto Ricans who would supervise the island’s finances.

The US obtained Puerto Rico after the Spanish American war in 1898.  At that time, it was seen as a strategic island holding in the Caribbean.  Puerto Ricans are free to travel or move to the US at any time.  The weak economy spurs that- supposedly one doctor a day moves to the mainland for a better opportunity.

Taxes are different than elsewhere.  Most individual Puerto Ricans don’t pay US Taxes, but do pay Puerto Rican taxes. There is an 11% sales tax, soon to increase in response to the financial situation.

During the 20th century there were tax incentive programs which brought Pharmaceutical firms, and others, to Puerto Rico.  When we were there, we saw several large container ships full of Asian autos unloading in San Juan harbor.  It seems that Puerto Rico could be a possible location for auto parts manufacturing.  Whether the Mexican work force is better or not, I don’t know.

One thing I do know is that the Puerto Ricans have less political capital than Cuban-Americans.  After arriving as immigrants with little, now South Florida is practically run by Cuban-Americans. They have clout.  To that point, they kept the US from establishing relations with Cuba for over 50 years. Two of the presidential candidates were of Cuban heritage.  There are some famous and successful Puerto Ricans, but they don’t seem able to muster much political power. Lin Manuel Miranda who wrote, directs, and stars in “Hamilton”, the hottest Broadway musical, and J Lo are two.

When we were there, we rented bikes and rode from the OldTown to Condado, a strip of land with nice hotels which is popular with tourists. It was a very windy day.  While waiting for a traffic light to change, a large, poorly secured, “Construction Ahead” sign on the sidewalk blew over and hit me in the head. Thank God I was wearing a bike helmet. Save a cut on my hand, I was unharmed.  Hopefully the territory of Puerto Rico will be shielded from the most harmful fallout from the financial crisis, and allow this beautiful island, with its wonderful people, to regain its footing.

Lee and Sign in Puerto Rico 2 Mar 1 16 Visiting my sign

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TABASFUNDING provides entrepreneurs with funding to acquire or expand businesses in the form of flexible loans from $100,000 to $750,000, or more. We supplement bank and other funds, and consider most types of businesses in Pennsylvania, New Jersey, and Delaware.   Please call 610-896-2400 or email Lee@Tabasfunding.com for further information.

http://tabasfunding.com/one-minute-application/

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For all your beverage needs, contact Ted Tabas, proprietor ROSEMONT BEVERAGE CENTER 850 Conestoga Road, Rosemont, PA 19010, 610-525-BEER, ted.rosemontbeverage@gmail.comwww.RosemontBeverage.com

Peer to Peer Online Lending

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Much money has been thrown into online lending. Some have described it as the financial “Uber”; trying for financial disintermediation in the staid banking industry.

One goes online to one of many sites, fills out an application, and by the magic of algorithms gets a fast loan approval. Pieces of the loans are then offered to investors, both individuals and institutions.  I was thinking that TABASFUNDING might like to be an investor, but I found the decision window too short- actually one has to decide immediately whether to buy. I guess they expect you to decide by algorithms as well.   I also found the request for personal information from me as an investor too intrusive.

But maybe you can’t know everything with algorithms.  It turns out that the San Bernardino terrorists were approved for a $28,000 loan by one of the online lenders. Allegedly some of the money went to buy the arms and ammunition used in the horrific incident.

US Regulators are taking stock of what to do to respond. From my point of view, what’s missing is what we learned and taught as community bankers: “Know Your Customer.” I like to do business with people in the area that I can get to know.  There are certainly some improvements that can be made to strengthen safeguards in online lending, but I am not sure that you can get to know someone with algorithms.

TABASFUNDING provides funding To Plasma Manufacturer, B Positive National Blood Services LLC

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TABASFUNDING, a private lender in Haverford Pennsylvania has provided a medium six figure loan to B Positive National Blood Services, LLC of Cherry Hill, New Jersey. (B Positive’s website: www.bpositivetoday.com)

B Positive National Blood Services was established in 2010 for the purpose of collecting high quality source plasma and other blood products to be used in the creation of life-saving therapies like immunodeficiency and bleeding disorders.  Plasma is the protein-rich liquid portion of the blood that is collected from volunteer donors through a process known as plasmapheresis.  The global demand for plasma-derived proteins and enzymes, such as Intravenous Immunoglobulin (IVIG) and Albumin, is at an all-time high, and suppliers like B Positive are opening new collection centers and rapidly increasing collections to help meet that demand.  B Positive is entering the next phase of its expansion plan and expects to double its collections in the next year.  B Positive CFO Marty Pollak said, “Lee Tabas spent a great deal of time getting to know our management team and business.  In particular, we were impressed with TABASFUNDING’s clear focus on entrepreneurs and the issues we face. B Positive looks forward to a long lasting, mutually beneficial relationship”. The funding from TABASFUNDING will be used as working capital for the company’s growth, as B Positive will open two new locations in spring 2016.

For further information about B Positive please contact B Positive’s Director of Marketing Jamie Brotz at JBrotz@bpositivetoday.com.

TABASFUNDING provides funding for entrepreneurs to expand or to acquire businesses. We do this in Pennsylvania, New Jersey, and Delaware. Funding is available in amounts of $100,000 to $750,000 in the form of flexible loans. For information about TABASFUNDING, please contact Lee Tabas at (610) 896-2400 or Lee@TABASFUNDING.com.

Economics of Big Towns vs. Little Towns

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Some of you know that we have a vacation place in Vermont, and try to spend time there.  When the weather permits, we do outside activities. When it rains, we try to find things to occupy us.  Time passes slowly there. When we finished spackling the nicks in the walls and looked for something else to do, we rode to Montpelier, the capital, which we had not visited before.  Montpelier is the smallest capital in the nation, with only 8,000 inhabitants.  The state house has a gold dome and looked interesting to visit, so we just walked right in. No metal detectors or pat-downs. We toured the oldest original senate and house chambers. The volunteer guide said that it’s a house of the people and open to them.

The guide didn’t want us to sit in the seats, or open the desks in the chambers though. He said that state senators and representatives don’t have additional offices or staff in Montpelier. When they are in Montpelier, they work from their desks on the floor of the chamber.  Pretty thrifty.

Our Vermont place is near the border with New Hampshire.  New Hampshire is kinda exciting at this time because of the presidential primary.  The local paper, The Valley News, is indispensable; all local activities are listed.  We are political junkies, and attended a forum with Lincoln Chaffee, a presidential candidate. There were 40 or 50 people in the room, so attending was no problem.  Later we saw that Hilary was speaking in Hanover, New Hampshire. We attended that – we did have to go through screening by Secret Service, but we had no problem joining the 500 or so who turned out to watch.

We like a synagogue in Woodstock, Vermont, and attended Friday evening service there. At our synagogue in Merion, Pennsylvania, one has to be buzzed in. Nothing like that in Vermont- the doors in the synagogue are always open.  In the Woodstock Synagogue, if there is a meal, it is most often pot luck where the congregants each bring a dish to be served. The congregants set up the chairs and tables for the meal and take them down afterwards. At my synagogue in Merion, we have an executive director and a full time rabbi, along with a new assistant rabbi.  Most events there are catered.  Of course there are a lot more members in Merion.

There is crime in Vermont, though. We have a friend, Jeff Kahn, who owns a novelty store, the Unicorn, in Woodstock.  We read in the Valley News that several businesses were robbed one night, including Jeff’s store, which is right in the middle of town.   He said hundreds of people had expressed concern to him.   I am thinking that so little goes on in Woodstock, that there is probably one policeperson in the office and no patrols in the middle of the night.

When we parked too long in Woodstock, we received a parking ticket. The ticket said that you have two choices. You may send in $10, or you can take the ticket to any participating merchant.  We had just bought some shoes in the outdoor store there, went in, and the owner immediately took the ticket and said they would take care of it. What a pleasure!

My theory is that the bigger the political subdivisions get, the more unwieldy and inefficient that they become.  One would think that with technology, cities and states could be very efficient.  The problem is that people competing for power and money get in the way.  Years ago, I heard a riddle about the factory of the future. The only things in the factory are a big machine, a man and a dog. The man is there to feed the dog. The dog is there to make sure that the man doesn’t touch the machine.

Living in the Philadelphia area, we have lots of cultural, sports, shopping and civic opportunities.  Hopefully, one day those rows of desks and employees with unaffordable pensions in City Hall Annex will give way to fewer employees, more automation, and maybe a dog or two.

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TABASFUNDING is providing medium 6 figure funding for construction of a new child care center at 410 Commerce Drive, FortWashington. The facility will be operated by Early Learning Children’s Academy (ELCA), which currently operates an existing center in FortWashington. The existing center will be moving to the new location.John Hertzberg, the principal of ELCA said: “Affordable quality child care is a necessity today for many families.  We appreciate the help that TABASFUNDING gave us in getting this job started.  We believe that the quality and convenience of our facility will help to make it a big success.”

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TABASFUNDING provides entrepreneurs with funding to acquire or expand businesses in the form of flexible loans from $100,000 to $750,000, or more. We supplement bank and other funds, and consider most types of businesses in Pennsylvania, New Jersey, and Delaware.   Please call 610-896-2400 or email Lee@Tabasfunding.com for further information.

http://tabasfunding.com/one-minute-application/

________________________________

LEE TABAS is available as a consultant or an expert witness.  Areas of expertise include:  general business, management, problem asset resolution, marketing, acquisition or sale of businesses, relationship development, loan policies, high performance banking, and business funding.  Please call 610-896-2400 or email Lee@Tabasfunding.com for further information.

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For all your beverage needs, contact Ted Tabas, proprietor ROSEMONT BEVERAGE CENTER 850 Conestoga Road, Rosemont, PA 19010, 610-525-BEER, ted.rosemontbeverage@gmail.comwww.RosemontBeverage.com

Gift Tax and Political Agendas

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Often parents if they are able, give money to their children.  Anyone can give up to $14,000 to another person annually without triggering the “gift tax”. If money is subject to gift tax, something like 40% of the eligible amount will need to be paid to the IRS by the giver. The gift tax is related to the estate tax; both are designed to target large accumulations of family wealth.

Not covered by the gift tax are 501c (3) charities. (The number refers to a section of the tax code). One can give as much as one wishes to the Red Cross or HopeSchool without incurring the gift tax.  On the contrary, when you make a donation to one of these organizations, you may claim a tax deduction.

There are no specific gift tax rules about 501c (4), (5), and (6) organizations. The (4), (5), and (6) sound high minded in the code. They are stated as civic leagues, social welfare, chamber of commerce, labor and the like.  In this category is Citizens United, the conservative group that makes documentaries and advertisements that often show public figures in a negative light.  501 c (4) may be actively involved in lobbying.  After the Supreme Court decision, we know that they may accept donations without limit. They are also able to shield their donors’ identities.

In April of 2015, the House of Representatives quietly passed legislation to exempt contributions to these organizations from gift tax and sent it on to the senate. There is apparently support for this type of legislation from both sides of the aisle.  Naturally, businesses, unions, the Koch brothers and other big contributors would like to see the issue clarified as not triggering the gift tax. For its part, the IRS has stated its position as not wanting to spend resources challenging donors on this issue. We recall the “egg in the face” that the IRS suffered from targeting tax exemptions of Tea Party groups.

My feeling is that it is a shame that the Supreme Court struck down limits on political donations.  Maybe applying the gift tax in these instances could help to rebalance the scales again?

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TABASFUNDING provides entrepreneurs with funding to acquire or expand businesses in the form of flexible loans from $100,000 to $750,000, or more. We supplement bank and other funds, and consider most types of businesses in Pennsylvania, New Jersey, and Delaware.   Please call 610-896-2400 or email Lee@Tabasfunding.com for further information.

http://tabasfunding.com/one-minute-application/

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LEE TABAS is available as a consultant or an expert witness.  Areas of expertise include:  general business, management, problem asset resolution, marketing, acquisition or sale of businesses, relationship development, loan policies, high performance banking, and business funding.  Please call 610-896-2400 or email Lee@Tabasfunding.com for further information.

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For all your beverage needs, contact Ted Tabas, proprietor ROSEMONT BEVERAGE CENTER 850 Conestoga Road, Rosemont, PA 19010, 610-525-BEER, ted.rosemontbeverage@gmail.comwww.RosemontBeverage.com

Travel and Immigrants

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Spring 2015

Nancy and I made a couple of trips south this year to break up the winter. We visited South Florida in January and South Carolina in February.

We haven’t spent much time in recent years in South Florida. The economics of the area are outstanding; better than in my neck of the woods, Southeastern Pennsylvania.

First come the retirees.  Retirees don’t spend lavishly, but they spend consistently. They need housing, restaurants, and services of all kinds.  Then there are the vacationers. The cruise industry occupies a huge berth today with many ships based in South Florida.  People on holiday spend money.   The crew members may be international but the supplies for the most part, come from the U.S.

We met a cousin for dinner at Aventura Mall on a Wednesday evening at 8 p.m. The mall was packed with many middle-aged and younger people. We wondered if the kids there attended school.  Are evenings at the mall part of the South Florida lifestyle?  Had we gone to King of Prussia, the big mall in our area on a school night, I bet one could toss a pelota and not hit anyone. My cousin clarified it for us; the kids there were from South America, where it was summer vacation.

Let’s now “Tango” over to the Latin American influence. Many Latin American companies set up offices in Miami when establishing a US presence. Brickell Avenue serves as a hub for those businesses, as well as a nexus for US businesses serving the Latin American markets.  Wealthy Latin Americans purchase second homes for cash in South Florida.  They look for places that are safe, where the electricity and water work 24 hours a day, and where they can get a fair deal. The US and South Florida fit the bill.

DadeCounty, the county containing Miami, is 65% Latino.  Their influence flourishes everywhere.  On our way back from the Keys, we stopped for lunch in SouthwestDadeCounty.  We checked out a Wynn Dixie supermarket.  The labeling in each department was in both English and Spanish.  We decided on a small Cuban lunch place. Everything was in Spanish.  One young person who worked there spoke halting English. It could have been Habana except there were no old cars or buildings.

In February when we drove to Charleston, we stopped at Potomac Mills, a mall in Woodbridge, Virgina to stretch our legs.  This is a mid-level outlet mall filled with sneaker stores – there were no Gucci or Tiffany shops.  The shoppers spoke languages of all kinds, mostly not English.  Many were Asians, Africans and Latino.  These are newer immigrants, not the Irish, Italian, or Russians like my grandfather. They are many of the people buying the sneakers, housing and cars and who will be drivers of the future economy. Over the centuries since the founding of the United States, immigration has ignited economic growth.  Businesses that position themselves to supply goods and services to immigrants will do well.

We did reach Charleston, one of our favorite towns, to spend a few days. Sherman left Charleston more or less intact during the Civil War, and afterwards, the inhabitants were too poor to construct new buildings, so there is a wonderful stock of antebellum architecture which is now treasured. We toured the Kahal Kadosh Synagogue, founded in 1749 by Sephardic (Spanish or Portuguese speaking) Jews looking for a better life. Nothing is new under the sun – they also came from Latin America.

Walking Charleston is the best way to get around.  King Street is compact and ideal for window shopping. It is hard to believe there are enough customers for all the restaurants interspersed throughout Charleston. We never usually leave town, but this time we drove to suburban PalmIsland – what a magnificent quarter-mile-wide beach! Charleston also has industry. It is a substantial port for the area, and North Charleston hosts one of the few Boeing assembly plants outside Seattle.

On the negative side, you won’t be swimming outside in South Carolina during the winter. The temperature in Charleston is about 15 degrees warmer than in Philadelphia. If you like driving, though, and are coming from the Philadelphia area, it is an easy 2-day ride and worth the trip.

In these divisive times, it is more important than ever to visit other places to see how the other half or third or 90% live. People all over are generally friendly, even when we have different backgrounds or philosophies.

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TABASFUNDING provides entrepreneurs with funding to acquire or expand businesses in the form of flexible loans from $100,000 to $750,000, or more. We supplement bank and other funds, and consider most types of businesses in Pennsylvania, New Jersey, and Delaware.   Please call 610-896-2400 or email Lee@Tabasfunding.com for further information.

http://tabasfunding.com/one-minute-application/

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LEE TABAS is available as a consultant or an expert witness.  Areas of expertise include:  general business, management, problem asset resolution, marketing, acquisition or sale of businesses, relationship development, loan policies, high performance banking, and business funding.  Please call 610-896-2400 or email Lee@Tabasfunding.com for further information.

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For all your beverage needs, contact Ted Tabas, proprietor ROSEMONT BEVERAGE CENTER 850 Conestoga Road, Rosemont, PA 19010, 610-525-BEER, ted.rosemontbeverage@gmail.comwww.RosemontBeverage.com

The Album, a short story by Lee Tabas

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On a crisp Sunday in late October, I fished in Valley ForgeNationalHistoricalPark.    In the fall, when it rains, sometimes the biggest trout migrate to spawn.  Battling against the swollen currents allows them to move upstream over rock ledges and shallow areas that they normally could not breach.   The rain came through several days earlier; unfortunately, the fish no longer were on the move. I got skunked.

Many people enjoyed the bright colors and sun in the Park that day.  As I crossed Route 23, the main road through the Park just south of Washington’s headquarters, I noticed a photo album along the side of the road.  I picked it up and began to leaf through the 30 or 40 photos with handwritten captions.  It appeared to celebrate family; some of the photos showed a young man, identified as little Jimmy, a 7 or 8 year old who everyone loved. Then there were a couple of pet photos.  Further on the caption was Pops or Dad, ”a great guy”.

As I leafed further through the book, my eyebrows lifted a bit when I saw the nude photos of a woman, with the caption “great body, luv ya babe” or something similar.   The author was probably a guy, who presented the book to his girlfriend.

I flipped to the front and to the back cover, but no name or contact information could be found.

There is a large rock memorializing the beginning of the Horseshoe Trail which starts in Valley Forge, and heads out 80 miles to join up with the Appalachian Trail in Central Pennsylvania. It seemed like a prominent spot, so I stood the Album up on the rock, and walked to my car. While putting away my gear, I thought about the album, and how it might have gotten where I found it.  It could have been forgotten while the guy and girl were on a picnic or a hike in the park.   Then it struck me that perhaps the guy and girl were driving on Route 23, and she was offended by the album and the pictures, they had a fight, and she tossed it out of the window.

p.s. I drove by there a few days later and the album was no longer on the rock. Either: 1) the happy couple came to reclaim it, or 2) someone else took it, or 3) your answer.

Simple Stupid

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 Most people have loads of passwords, and are paranoid about cybercrime, malware, phony eastern European credit card charges and other schemes. These are certainly concerns, but let’s get a bit more low-tech.  Recently, I was contacted about serving as an expert in a matter regarding embezzlement from bank accounts. A lawyer’s long-time assistant had taken money over a long period from his attorney escrow account.  The lawyer never reviewed the bank statements and relied on the assistant to keep track of the account; of course you know the results.

I consulted in another matter where an unsophisticated person received a lot of money as a settlement for injuries sustained.  That person’s attorney put the money into a bank account for him.  A careless banker and that banker’s unscrupulous friend helped relieve him of most of it.            The point, simple stupid, is that with very few exceptions, you need to be involved, whether you detest it or not, in reviewing your financial matters, and financial matters for which you have responsibility.

In our smart phone world, why would anyone want to have paper bank or brokerage statements?  The reason is that you are more likely to look at paper that comes in the U.S. mail, as opposed to email. I serve as trustee for a bunch of accounts, and treasurer for several entities. Some people might not dwell too much on the responsibilities one carries as a trustee, but that is a mistake.  Years ago, I was a trustee of a day school that did not pay its federal withholding taxes. Subsequently, all of the trustees had a tax levy filed against them.  That focused my attention.

If you are a trustee of an organization that has a “full opinion” Certified Public Accountant audit, you can pretty much relax. The accountants will review the books, and you are probably safe.  But, most organizations can’t afford, and don’t need full opinion audits.  With anything less, you are on your own, and the accountant will get the person/organization to sign some forms to say so and absolve them of any responsibility.  If you are on an Advisory Board, don’t worry.   Advisory Boards have no official responsibility.

I suggest the following for your own finances:  Get your important bank or brokerage statements where there are cash, check or electronic transfers in hard copy.  Review the pages that have the copies of the checks on them, or other pages that show the payees to be sure that there is nothing with which you are not familiar. If it is a business account handled by others, test check the same thing from time to time. If you have responsibility as a Trustee, or other officer for someone else’s money, in addition to the above, confirm that each account is reconciled monthly.

If you don’t want to take the time to do these things, consider resigning because you have the responsibility for any wrongdoing.

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TABASFUNDING provides entrepreneurs with funding to acquire or expand businesses in the form of flexible loans from $100,000 to $750,000, or more. We supplement bank and other funds, and consider most types of businesses in Pennsylvania, New Jersey, and Delaware.   Please call 610-896-2400 or email Lee@Tabasfunding.com for further information.

http://tabasfunding.com/one-minute-application/

________________________________

LEE TABAS is available as a consultant or an expert witness.  Areas of expertise include:  general business, management, problem asset resolution, marketing, acquisition or sale of businesses, relationship development, loan policies, high performance banking, and business funding.  Please call 610-896-2400 or email Lee@Tabasfunding.com for further information.

________________________________

For all your beverage needs, contact Ted Tabas, proprietor ROSEMONT BEVERAGE CENTER 850 Conestoga Road, Rosemont, PA 19010, 610-525-BEER, ted.rosemontbeverage@gmail.comwww.RosemontBeverage.com

The Merchant Cash Advance/ Alternative Business Lending Industry

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TABASFUNDING has been providing funding for entrepreneurs to expand or acquire businesses since 2002.  We are an alternative to traditional bank financing, which since the recession has become more difficult to obtain for small businesses.  Even though we are a bit more expensive, we look pretty attractive because we have a lot of flexibility.  The activity in this market has not gone unnoticed,  hence the growth of Merchant Cash Advances.

While I’ve been aware of this  industry, and even signed up to represent On Deck Capital, one of the bigger players, I was not attentive to the money being thrown at it. On Deck, Kabbage, and some others are considered ‘TECH” firms, and have raised millions from Silicon Valley funders. They use algorithms to evaluate creditworthiness and to decide whether a borrower is able to repay. With CD rates at 1% and no bonds worth buying, investors are hungry for something with a yield. There are now dozens of firms doing Merchant Cash Advance lending. These businesses have blanketed the internet with pitches for what they do.

What is a Merchant Cash Advance?  It is a loan of $5,000 to $100,000 made to a business that accepts credit cards. When a merchant accepts credit cards, a day or so after the card is successfully swiped, money is electronically deposited into the merchant’s account by Visa, American Express or whomever.  With Merchant Cash Advances, the lender obtains permission to direct debit the bank account of the borrower after the credit card receivables are deposited.  They debit the account DAILY to pay loan interest and principal.

Loans are typically repaid quickly, within 90 to 120 days, with interest rates of 30 to 40%.  Annualizing those rates makes the interest on this type of lending well over 100% annually.  I am surprised that borrowers take this financing a these rates, but there must be are a lot of desperate borrowers out there, or perhaps the Merchant Cash Advance lenders don’t explain what the borrower is getting into.  I think this whole industry is going to be news on the front pages as the next Payday Lender-like scandal.  We’ll have to wait to see.

As opposed to the Merchant Cash Advance, our loans typically repay over 3 to 7 years. Sometimes, we have a period of interest-only to match the borrowers’ expected cash flow.  In addition to the money, our borrowers get our counsel. Being an entrepreneur can be a lonely path, and having someone to bounce things off  can be helpful.

Borrowing for expansion or acquisition can be a good thing. Alan Wilen of Eisner Amper CPA’s recently did a good column on how borrowing to fund profitable growth makes sense. http://www.eisneramper.com/debt-maximize-profitability-0414.aspx?c=trends

If your business stands to make more from the profitable new business, borrowing makes sense.  If you have a good business opportunity to expand, and need reasonable funding to do it, please give me a call at 610 896 2400 x 11.

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TABASFUNDING provides entrepreneurs with funding to acquire or expand businesses in the form of flexible loans from $100,000 to $750,000, or more. We supplement bank and other funds, and consider most types of businesses in Pennsylvania, New Jersey, and Delaware.   Please call 610-896-2400 or email Lee@Tabasfunding.com for further information.

http://tabasfunding.com/one-minute-application/

________________________________

LEE TABAS is available as a consultant or an expert witness.  Areas of expertise include:  general business, management, problem asset resolution, marketing, acquisition or sale of businesses, relationship development, loan policies, high performance banking, and business funding.  Please call 610-896-2400 or email Lee@Tabasfunding.com for further information.

________________________________

For all your beverage needs, contact Ted Tabas, proprietor ROSEMONT BEVERAGE CENTER 850 Conestoga Road, Rosemont, PA 19010, 610-525-BEER, ted.rosemontbeverage@gmail.comwww.RosemontBeverage.com

How to Eliminate Pennies by Rounding Sales Price Plus Tax to the Nearest Nickel

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My son, Ted, owns Rosemont Beverage Center here in Pennsylvania. He wanted to raise some of his prices, and wanted to make giving change easier by setting the sales prices, such that when tax was added, the total amount ended with a zero or a 5 in the cents column. He was doing this by trial and error, but with hundreds of SKUs, I thought that a spreadsheet formula to do this for all of the items would be the way to go. We need to start first with the suggested sales price- I suggest that you make that one column. Then have a second column that is the sales price and tax. You set up a simple formula that the second column equals the first, plus 6% or whatever your sales tax is. Next, there is the excel formula that can help you do this, MROUND, which rounds to the nearest multiple. This will be the third column.

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TABASFUNDING provides entrepreneurs with funding to acquire or expand businesses in the form of flexible loans from $100,000 to $750,000, or more. We supplement bank and other funds, and consider most types of businesses in Pennsylvania, New Jersey, and Delaware.   Please call 610-896-2400 or email Lee@Tabasfunding.com for further information.

http://tabasfunding.com/one-minute-application/

________________________________

LEE TABAS is available as a consultant or an expert witness.  Areas of expertise include:  general business, management, problem asset resolution, marketing, acquisition or sale of businesses, relationship development, loan policies, high performance banking, and business funding.  Please call 610-896-2400 or email Lee@Tabasfunding.com for further information.

________________________________

For all your beverage needs, contact Ted Tabas, proprietor ROSEMONT BEVERAGE CENTER 850 Conestoga Road, Rosemont, PA 19010, 610-525-BEER, ted.rosemontbeverage@gmail.comwww.RosemontBeverage.com