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The Source
 November 2010
 
 
       Financing America's Fastest Growing Companies®
 
New Client Highlights

Amerisource is pleased to announce it closed and funded 14 new client relationships in September and October 2010. This brings Amerisource’s total 2010 new commitments to just over $51 million.

 
 
 
 
 
  Company's Consultant


  Company manufactures prototype parts for
      the automotive industry

 
  Family business; founded in 1980

 
  Company managed to survive the auto industry
      collapse over the past two years and is now
      seeing a rebound in sales

    Existing lender not able to increase company's
      credit line beyond $500,000 in this credit
      market

    Delinquent payroll taxes as a result of recent
      pressure on cash flow



  
   
7 business days; additional 5 days to fund

Amerisource approved a large increase in the Company’s credit line, allowing the existing lender to be
paid off while providing significant additional working capital to the Company. A reserve fund was
established to address the Company’s past due taxes in short order. Amerisource also brought in an
inventory lender to support the Company’s additional cash flow needs through the approaching growth
cycle. With the supplementary working capital and Amerisource’s true “floating” line, the wheels are
turning again for this manufacturer! Read more...



 


 
 
Company's Banker



  Metal fabricator; in business since 1988

  Diverse and creditworthy customer base

  Company recently won a large contract to build
    a component used in sound barriers

  Existing bank seeking to exit the line of credit,
    but willing to continue to finance the
    company's real estate and equipment
 
  Amerisource brought in by the banker to
    refinance the line of credit

  Federal tax liens filed

 
 
 
5 business days; additional 3 days to fund
 
 
  Amerisource worked with the Company’s banker to jointly come up with enough funding  availability to pay
  off the federal tax liens. And with access to a line of credit again, the company is finally able to pursue its 
  growth goals. Read more...



Monthly News Reca
p & Highlights

Business and Industry News

 11/23   Banks Selling Off More Troubled Assets
            The New York Times
             In the past few months, banks have sold more than $6 billion in "non-performing" assets, according
             to a recently-published study by KBW.  This $6 billion is included in the total figure of more than $16
             billion in such assets that banks have sold so far this year, twice what they sold last year, said the
             report.  New owners of these loans are primarily private equity firms and hedge funds. Some
             companies have set up new funds just to buy troubled assets, according to this Times article.
             Read more...

 11/03  Business looks to Republicans to block rules, taxes
            Bloomberg
            With the conclusion of midterm elections and Republicans gaining control of the House, the outlook
            is now decidedly positive for businesses in terms of healthcare, taxes, the environment and
            financial reform.  The 11/2 midterms resulted in a 60-seat Republican gain in the House,
            the largest since 1983. Republicans are likely to try to eliminate funding for parts of Obama's
            health care bill, curb regulations and government spending and extend Bush-era tax
            cuts and squash Obama's proposals to increase taxes on companies' profits overseas. 
            All of these objectives are potentially very positive for businesses, particularly those in the
            pharmaceutical, air-freight, financial services and restaurant industries, according to
            this Bloomberg report.  Read more...

 11/01   Fed to buy extra $600 billion of treasuries to boost growth
            Bloomberg
            In order to boost growth and improve the unemployment rates, the Fed announced
            plans to
purchase approximately $75 billion of treasuries per month through June 2011.
            The strategy, dubbed 
QE2 (quantitative easing, round two) could fail or fuel inflation
            and asset bubbles. While some feel
that the risks of these additional purchases outweigh
            the benefits, the Fed's Open Market
Committee cites the high levels of unemployment
            and low measures of inflation as factors which led
to this announcement.  Read more...
 
Amerisource News

11/08    Amerisource Named a Top Workplace in Houston
             Amerisource Funding, one of the largest independent commercial finance companies
             in the country, was named a 2010 Top Workplace in Houston by the Houston Chronicle.
             Read more...

           

 10/26    Amerisource Expands Nationwide Operations
              Amerisource Funding, the leader in working capital financing for growing businesses
              throughout North America, recently welcomed Jan Ziegler as Regional Market Manager.  Read more...
             

            
 10/22    Amerisource Sponsors CFA Convention in Chicago
              The 66th Annual Commercial Finance Association (CFA) Convention concluded
              today in Chicago, Ill.  The convention is, by far, the largest in the world dedicated to the asset-
              based lending and factoring industries.  Read more...          


 
09/01     Amerisource Sponsors CFA Houston Luncheon Panel  
             The Houston chapter of the Commercial Finance Association (CFA) held its quarterly
             luncheon panel today on the state of the private equity markets.  Read more...     
               
     



            

Amerisource Community Outreach

Amerisource and its employees are committed to giving back and enriching the communities
in which we live and work.  Read more...

Recent contributions and support include:

10/07         Energy Capital Open Title Sponsorship
                 Amerisource recently hosted The Energy Capital Open, an annual golf tournament, in conjunction
                 with Derrick Equipment and Capital One, with all proceeds benefiting Texas Children's Cancer Center.
                 Since the tournament's inception, nearly $300,000 has been raised for the Texas Children's Cancer
                 Center. 

09/30         Houston Humane Society

09/30         University of Texas Business Network Charity Golf Tournament

09/09         Cypress Christian School's Annual Banquet

09/01         Houston Junior Woman's Club Holiday Happening




Interesting Data


$4 billion
Estimated expense of the recent election, which trails only the '04 and '08 presidential elections in cost.


Source: Bloomberg
 


                            
97.1
The National Federation of Independent
Business's optimism index score in October,
increased from 89 in September.

Source:
Bloomberg
 
59%
The percent of Internet users who now use some
kind of social media, including
Twitter, blogging and
networking sites.

Source: PEW Project for Excellence in Journalism
 

 

12.2%
The volume of global trade contraction in 2009.


 Source: World Trade Organization
 43.1% 
The typical voter turnout in midterm elections, measured as a percentage
of all registered voters.

1962-2006, Source: infoplease.com
17
The number of women who currently serve 
in the U.S. Senate.

Source: CAWP



$13.7 trillion

The national debt - which is fast approaching the limit of $14.3 trillion. Just two years ago,
the national debt was $10.0 trillion.

Source: ABC News and www.treasurydirect.gov

 
61%
 
Decrease in smart car sales as compared
to the same time last year.

73 weeks
Duration of federal unemployment benefits.

Source: CNN

 
41%
Percent of U.S. drivers who said they have fallen asleep at the wheel at some point in their lives, with 11 percent saying it has happened to them in the last year.


1 billion gallons 
Amount of water recently found near the
moon's south pole.

Source: ABC News and NASA




5% 
Percentage of people using Google's new service
- Instant Previews - who are more likely
to be satisfied
with their search.


Closing Thoughts


It seems businesses and investors are increasingly optimistic with the coming change in power in Washington. In the 90 days preceding the election, when it became clear that the Republicans would retake the House of Representatives, the U.S. stock market – the world’s most efficient leading indicator – has seen a 20% surge in the broad S&P 500 Index.  And of course, as corporate equities strengthen, business owners regain confidence, accumulate inventories, increase marketing expenditures and invest in new machinery and equipment – all things which drive economic growth (and hiring).  In sum, history shows that gridlock on Capitol Hill is good for business.  With neither party in complete control of our government, it is difficult for Congress to make drastic changes to the way our country has historically operated.  Instead, we see incremental progress – the sorts of things that both parties can agree on.

Perhaps more importantly, people are finally realizing the connection between employment and “local” tax policy.  Businesses will relocate to a community, state, or even country, where they can make the most money and have the best chance to succeed.  If you haven’t seen this yet, here is a good article contrasting the small government and low taxes of Texas with the big government and high taxes of California: Texas vs. California.

What happens in the 112th Congress remains to be seen, but the focus on economic growth and jobs will hopefully be a turn in the right direction for our economy.

As an independent commercial finance company   and employer of nearly 70 employees we understand the challenges our clients face. If you know of a business that could benefit from our financing and outsourced management services, we'd love to hear from you.

 
 


- D. Michael Monk

Managing Director





 
 
  About Amerisource

Founded in 1984 and headquartered in Houston, Amerisource is one of the largest and fastest-growing independent commercial finance companies in the country.  Amerisource provides working capital financing and outsourced receivables management to small and middle market companies with financing needs from $50,000 to $10,000,000. 

Core products include asset-based lending revolvers, accounts receivable factoring, seasonal bank "over-lines", outsourced A/R, credit and collections management, debtor-in-possession ("DIP") financing, trade finance for importers, and export factoring. 

Amerisource also provides portfolio management and servicing for banks through its private label program America's Back-Office for Lenders™, portfolio acquisitions and liquidations, and rediscount lines of credit.
 

Amerisource Funding, Inc. | 7225 Langtry Street, Houston, Texas 77040 | 713 863 8300 or 800 US MONEY


 
Questions or comments? Contact the editor at kcotton@amerisourcefunding.com or 713 863 8300 x 246.