Connect with Marshall on LinkedIn: https://www.linkedin.com/in/marshalllebovits/
In this episode of The Manufacturers Network Podcast, host Lisa Ryan sits down with industry expert Marshall Lebovitz, President of Asset Based Funding Solutions. Marshall shares his wealth of knowledge gained from 35 years of experience in lending, offering valuable insights into how manufacturers can optimize their working capital.
Key Themes & Topics:
- Understanding Working Capital:
- Marshall defines working capital as a measure of a company's ability to meet its short-term obligations. He discusses the critical role of efficiently managing receivables and inventory in enhancing enterprise value.
- Misconceptions in Business Financing:
- Marshall addresses common misconceptions, emphasizing that options exist beyond traditional bank loans, such as SBA loans and USDA loans, and private credit options, such as asset-based lending.
- Improving Cash Flow Strategies:
- Key strategies include managing receivables and inventory regularly, maintaining strong credit and collections protocols, and leveraging real-time inventory reporting systems.
- Choosing the Right Type of Funding:
- Marshall lays out important considerations, including the purpose of the funding, the term (short vs. long-term), the company's credit profile, and ownership structure.
- Common Mistakes in Seeking Financing:
- Mistakes like delaying the search for funding, focusing only on the cheapest money, and not having accurate financial reports can hinder a company’s access to financing.
- Building Relationships with Lenders:
- Even if current needs are met, businesses should maintain open lines with potential new lenders to safeguard against changes in market conditions or lender appetites.
- Economic Trends and Impacts:
- With uncertainty in the current economic climate, businesses should be aware of trends in non-bank lending as a viable option amidst tightening bank credit.
- Case Study: Leveraging Financing for Growth:
- Marshall shares a success story of a beverage manufacturer that leveraged asset-based financing to grow significantly and diversify its lender base.
- Practical Steps for Business Owners:
- Business owners are advised to get their financial house in order, have forward-looking financial models, and thoroughly understand their financial standings.
Lessons Learned:
- Effective cash flow management can propel a business’s growth without diluting ownership.
- Exploring various financing options provides flexibility and security in challenging economic times.
- Building strong relationships with multiple lenders can offer strategic advantages.
Fun Fact: Marshall playfully attributes his gray and thinning hair to his extensive 35-year career in lending, showcasing his seasoned experience in the industry.
Connect with Marshall Lebovitz:
For more episodes and insights, visit The Manufacturers Network Podcast and stay tuned for more expert discussions that help manufacturing businesses thrive.
