2012 was a truly amazing year. Volume was up! Closings were up! And client quality has reached a new high. BHCL added three new Affiliates, one in New Mexico, one in Hong Kong and one in London. Most all of the Affiliates are adding new referral sources and total deal flow is between 400 and 600 applications/inquiries per month. If you look at the latest JustAskGeorge show you will note a real upgrade in the video presentation. The show has reached new heights and is now seen by hundreds of thousands of viewers. This blog has reached over 1,000,000 people in the past year. 2012 has been a banner year indeed.
The Real Action is in the Structured Finance Arena
The marketplace is still stalled insofar as commercial banking channels are concerned. The real action is taking place in the structured finance arena. Asset based lenders, factor resources, equipment leasing companies, real estate investment funds and small community and rural banks have been very responsive to the needs of the small business financing requests in past months. Many of those sources are our partners in providing proactive solutions to our clients. On balance BH Capital has made several investments, participated in various loans to our clients as well as consulted on countless turn-a-rounds, balance sheet restructures and general business make overs. We have been busy on all fronts. But the challenge remains that BH Capital cannot serve everyone. We have limited time and internal professional resources as well as an annual budget that can only accommodate only so many clients at a time. We have added some new financing partners for 2013 and we expect to see that budget rise slightly. However we cannot provide financing for every application/inquiry.
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Traditional Financing Channels May Improve
With the election on the horizon, and the possibility of a new president, the traditional financing channels may improve but that will still take time. Possibly two to three more years of recovery. In conversations with so many of my friends in the financing community, they have been reluctant to engage in any expansion or for that matter go back to the days of old where they were more aggressive in providing financing tools to small business. They are generally just cautious about the current administration and that includes all our friends on the Hill. There is gridlock in Washington and that gridlock has spilled over to American Enterprise. Everyone in small business is feeling the results of this quagmire.
BHCL looks forward to a successful 2013. BHCL also looks forward to assisting are existing clients and gaining new ones. We look forward to speaking with you soon.