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Impact of Capital Markets on Commercial Real Estate

Blog Post 1

The economic downturn is reducing demand for commercial real estate, and vacancies are expected to rise moderately, though they will remain in a healthy range. Nonetheless, investors are facing higher borrowing costs and have access to less leverage, which negatively impacts values. Leverage is one of the prime motivators for investors to purchase real estate for a few reasons. To start, it allows investors to control a larger property than they otherwise could if they had to pay all cash, thus increasing their return on equity. Leverage also allows investors to spread their equity across multiple properties, minimizing their risk through diversification.

When there is uncertainty in the markets, lenders hedge their risk by ...

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2011

Factoring Industry Show Signs of Improvement

Blog Post 2

Factoring organizations are beginning to see signs of improvement in their clients in transportation, retail supply chain, automotive and government businesses. Many factors report an increased volume from their existing clients and "a flood of calls" from new leads. Factors are also getting a shot at a much better prospect pool that they have seen before. With commercial banks remaining tight-fisted, the factors benefit from the influx of clients with good credit quality. factors are currently offering the financing based on the ability to have a quick closing and by being able to offer as much availability as possible.

Many potential factoring clients could be in a rude awakening if not accustomed to the terms...

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2011

Purchase Order Finance

Blog Post 2

As we look back on the gradual and uncertain economic recovery of 2010 and the beginning of 2011, we see some businesses that were able not only to survive but thrive during the recessive environment thanks to the purchase order financing. In simple terms, purchase order financing can provide up to 100% of the capital needed to manufacture or acquire inventory in order to fulfill purchase orders This allow businesses to grow when they have profitable sales opportunities but do not have the balance sheets to support traditional financing.

Generally, a company simply needs solid purchase orders from creditworthy buyers, and it must have the ability to...

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2011
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