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A Publication of The International Factoring AssociationApril 2017 VOL 19 No. 2SPRINGCONFERENCEISSUEALSO INSIDE:Futurist Dan Burrus Talks Hard and Soft TrendsCultivating a Culture of Success with Dr. Gustavo GrodnitzkyCynthia Hetherington on Watching the Web and Social Media for Fraud
TABLE OF CONTENTSApril 2017 VOL 19 No. 2Futurist Dan Burrus Talks Hard and Soft TrendsBy Dan BurrusPO Finance panelQ&A with Paul D. Schuldiner, Edward P. King, and Bret SchuchCultivating a Culture of SuccessQ&A with Dr. Gustavo GrodnitzkyWatching the Web and Social Media for FraudQ&A with Cynthia HetheringtonPilgrim’s Pride: America’s Very FirstFactoring AgreementBy Jeremy B. Tatgecolumnslegal factor: The Potential Impact of the TrumpAdministration on the Factoring and Asset BasedLending Industries—Part 1 of 2By Steven N. Kurtz, Esq.sales & marketing: Unlock Your Business’Potential OnlineBy Brittney Holcombwhat’s new at ifaADVERTISER INDEX3i Infotech, Inc. .11Ansonia. 33CapitalPlus Equity, LLC. 21ePaymentAmerica.19FactorFox Software, Inc. 34FactorView. 23First Corporate Solutions.40Gulf South Receivables Fund, LLC. 31HubTran Inc. 2International Factoring Association. 8, 22, 26Loeb Term Solutions. 6ProfitStars.7Tax Guard.18Utica Leaseco, LLC. 23William Stucky & Associates, Inc. 24The Commercial Factor April 20173
from the executive directorby bert goldbergThe IFA and the AFA have been, and will continue to be, thevoice of the Factoring industry. In support of Factors, we havehad a busy year and plan to have many new offerings that willbe released in the next quarter. Some of these are: Both the IFA and the Factoring industry have continued to experience strong growth. The IFA has added over 60 newmembers during the last year. Membership in the IFA is still limited to Factors, Asset Based Lenders and PO Financecompanies. We have just released our fifth biennial survey of the entire factoring industry. This is, by far, the largest and mostcomprehensive report of this industry and shows in great detail how factors operate and the ways in which the industryhas changed over the last decade. We will be releasing a brand new website. It has been important to us to retain the functions that we’ve developed inthe existing website. For that reason, we could not simply install an off the shelf product. The new site is being testedand should be up soon. We will be releasing the first ever legal compendium of the factoring industry. This product will contain a detailedlegal analysis of legal issues. The initial release will contain about 25 of the largest states with the remaining states to bereleased soon. The overall topics covered are: Assignment of Claims Act / State Government Entity Assignments State Tax Liens Liability and Penalties for Unauthorized Filing of Financing Statement Enforcement of Judgment Liens Confessions of Judgement State Sales Tax Liability Lending License We are finishing up the study guide for the factoring industry, entitled “Factoring: A Guide to Account Management”.It is not specifically designed around the CAEF exam, but rather meant to assist Account Executives as they brush up ontheir Factoring knowledge in preparation to sit for their certification. Sections in the guide include: Factoring Terminology Is it Factoring or a Loan? The Factoring Transaction Complementary Products The Factoring Process Client Credit Portfolio Management Loss Prevention All of our training courses are being updated for changes that are occurring in the Factoring industry. This includes anupdated return of the extremely successful “How to Compete Against the World of Fintech” Training Class. The AFA continues to support the Factoring industry through our trips to Washington DC to educate law and policymakers on the value of Factors to the American economy. We are also continuing to work with specific Senators andCongressmen who have indicated they will support the Factoring sector. This year’s Annual Conference will be biggest and best yet. As of the time of writing, registrations are running ahead oflast year. With over 70 speakers and more networking time than ever before, this year’s event will again show why theIFA Annual Conference is considered to be the “Must Attend Event of the Year”.Thank you for your support of the IFA, AFA and the entire Factoring industry. I look forward to meeting you in FortWorth or at a future IFA event.4 The Commercial Factor April 2017
newsJames Rothman, January 9, 1961-March 12, 2017James Rothman, 56, of Boca Ratondied peacefully in his home with hisgirlfriend, Meg by his side. He wasborn in Mount Vernon, NY. Son ofthe late David and Barbara Rothman.Jim is survived by his beautiful twins,Eliana and Danielle. He is also survivedby his two sisters, Roberta and Deborah Rothman and his niece and goddaughter, Hannah Rothman. Alwaysloving and generous to his children,Meg, and entire extended family.The InternationalFactoring Association6627 Bay Laurel Place, Ste CAvila Beach, CA 93424MAILING: PO Box 39Avila Beach, CA 93424-0039805-773-0011Executive DirectorBert GoldbergPublished ByThe International Factoring AssociationEditor/Design & GraphicsR&W Publishing Associates, Chelsea Kirtleychelsea@rw-assoc.com 727-450-9870Advertising SalesR&W Publishing Associateslisarafter@rw-assoc.com 610-213-9105Advisory BoardRobyn BarrettManaging Member, FSW FundingGlen DalzellVP of Sales & Marketing, Liquid Capital CorporationHarvey FriedmanCOO, Lenders FundingTony FurmanPresident, Interstate Capital Group of CompaniesCrystal HanManaging Director, Pipeline Financial Services, LLCCole HarmonsonPresident, Far West CapitalJohn La LotaPresident, Sterling National BankFactoring & Trade Finance DivisionL. Gabriel SeguraPresident, CV Credit Inc.The International Factoring Association’s (IFA) goal is toassist the factoring community by providing information,training, purchasing power and a resource for factors. TheIFA provides a way for commercial factors to get togetherand discuss a variety of issues and concerns about theindustry. Membership is open to all banks and financecompanies that perform financing through the purchase ofinvoices or other types of accounts receivable.The Commercial Factor is published bi-monthlyby the International Factoring Association. Tosubscribe, please email info@factoring.org.The Commercial Factor magazine invites the submissionof articles and news of interest to the factoring industry. Formore information on submitting articles or advertisements, email news@factoring.org, or call 805-773-0011.The views expressed in the Commercial Factor are thoseof the authors and do not necessarily represent the viewsof, and should not be attributed to, the InternationalFactoring Association.He was loyal to his friends and colleagues. Jim has been active withThe March of Dimes for over nine years and served as President ofhis Boca Raton chapter three times.In lieu of flowers the family has kindly asked for donations in hismemory to The March of Dimes, South Florida Chapter.Jim is probably best known as a staffing industry expert for hisyears at Capital TempFunds, part of Capital Business Credit, LLCfrom 1996 to 2009. Although he joined Wells Fargo briefly, afterthe sale of TempFunds to Wells Fargo, he moved to Crestmark as aGroup President for the eastern region of Crestmark in 2009.James Rothman was a pioneer in funding staffing companies. WhenI started my factoring firm, he provided me with a senior credit facility when everyone else turned me down. I cannot be more thankfulto the man who gave me an opportunity of a lifetime. The thingthat I admired most of all was his unbelievable commitment to histwo miracle children. I will forever be grateful and miss my mentor,colleague, and friend, Jim. With solemn regards, Eric Feinstein,Prosperity FundingJim Rothman was a credit to our industry in numerous ways and awonderful father to his two twin girls whom he loved more than life.Thank you, Jim, for exerting such a positive influence to so many,for so many years. You will be missed. David Rains, CommercialFinance ConsultantsINDUSTRY NEWSInternational Factoring Association Adds Preferred VendorProgram MembersThe International Factoring Association (“IFA”) announced thatFactorsNetwork and Clarus Merchant Services have joined itsPreferred Vendor Program. The vendors will now offer exclusivediscounts to IFA members. The IFA’s Preferred Vendor Programenhances its member’s investment by helping to control theirfirm’s costs.The Commercial Factor April 20175
David Levy, President of UticaLeaseco, LLC Joins Panel Discussionon Strategic Lending Partnerships atIFA/NYIC Joint Factoring Luncheonin NYCOn March 7, David Levy joined leaders of the factoring community ina discussion of a team approach toproviding financing solutions to factoring clients and prospects. Moderatedby Stu Rosenthal, EVP of PrestigeCapital, the panel also included JohnBettex, Senior Counsel of DS-ConceptFactoring, Harvey Friedman, COO ofLenders Funding LLC, Lee Haskin, CEOof Crossroads Financial and Paul Schuldiner, SVP of Rosenthal Trade Finance.INDUSTRY TRANSACTIONSBibby Financial Services ProvidesNearly 3 Million in ABL Financingto Georgia-Based Building ProductsFirmBibby Financial Services (BFS)provided nearly 3 million in financing to a Georgia-based distributor ofinsulation, garage doors and exteriorgutters for residential and commercialbuildings. The asset-based fundingwill be used to refinance existing linesof credit and provide needed working capital to support the company’sstrategic growth plan.Big Shoulders Capital Provides 3.3Million Term Loan to Short-LineRailroad OperatorBig Shoulders Capital provided a 3.3million senior secured term loan to ashort-line railroad operator. Big Shoulders was able to unlock the equity inthe Company’s assets in order to fundworking capital needs.Crestmark Closes 20 TransactionsTotaling Nearly 7.7 Million in theFirst Half of MarchCrestmark secured a total of 7,680,000 in financial solutionsfor 20 new clients in the first half ofMarch.North Mill Capital Funds 2 MillionAccounts Receivable Credit Facilityfor Air Contact TransportThe funds were utilized to pay offthe company’s existing lender andprovided additional working capital.Air Contact Transport is a freight transportation company specializing in theground transport of automotive parts.Sallyport Commercial Finance ClosesRecord Month in February, ProvidingFacilities Totaling 25.2MMSallyport was able to support businesses across a number of industriesand sectors, including a PetroleumDistributor, a Seafood Distributor, aLender to the Construction Industry,a well-known Shoe Designer andManufacturer, a Guitar Builder, and aLandscape Gardener to New-HouseBuilders. The above businesses werefinanced using almost a full range ofasset based lending facilities includingAR Financing, Inventory, Equipment,Cash Flow Loans, and Purchase OrderFinance.TAB Bank Provides a Flatbed HeavyHauling Company in California with a 1 Million Revolving Credit FacilityTAB Bank provided a 1 million revolving credit facility for a flatbed heavyhauling company located in California.the loeb t. K. o.trustKnowledgeoptionsYour trusted resource for equipmentsolutions for 137 Yearsequipment term loansauction servicescertified market appraisalsofflease equipment solutions800-560-loeb (5632)loebequipment.comloebwinternitz.com6 The Commercial Factor April .com
The new facility is extended through amulti-year agreement and will providefor the company’s ongoing working capital needs. The company is afamily-owned business that specializes in same-day delivery, oversizetransportation, and LTL services.PERSONNELErik Madsen Joins Accord BusinessFinanceErik Madsen has joined Accord Business Finance as Director to supportnew business development. Erik hailsfrom Denmark where he received aBachelor’s of Business Economicsfrom AAlborg School of Economics.After graduating as a CPA in Denmark,he immigrated to the US, where hehelped European companies get theirreceivables paid, by setting up repayment plans for their business debtorsin the US. For the past 20 years, Erikhas helped many US companies withfinancial analysis, auditing, A/R management and collections advice.Sallyport Announces New HiresGreg Dyson has been hired as NationalSales Manager. Greg has over 20 years’experience providing creative financesolutions to growing companiesnationwide.Danny Krasna joins Sallyport Commercial Finance as Vice Presidentof Business Development. Dannyis based in New York City, helpingSallyport expand their footprint andbringing with him a breadth of knowledge of business development andportfolio management from his yearsat Bridgeport Capital, Prestige Capitaland Crestmark Bank.Utica Leaseco, LLC Announces aNew Sales Team Member, AllanGibbelAllan Gibbel has joined Utica’s salesteam as Western Business Development Market Manager. Allan has beena leading marketer of lending solutionsfor nearly 2 decades. Allan is located inSouthern California. Kelly L. Collins Joins Crestmarkas Vice President, BusinessDevelopment Officer for EastDivisionBased in North Carolina, Collins isresponsible for helping small- andmedium-sized businesses in the Carolinas access financing, and for creatinggreater awareness for Crestmark’sbrand within her territory. She reportsto James Farrell, first vice president,East Division sales manager. Collinsjoins Crestmark from AmerisourceFunding, where she was a regionalmarket manager for the SoutheastRegion, and the company’s 2015 TopProducer.Hitachi Business Finance HiresThomas Bayer as Syndicated CreditOrigination LeaderThomas will concentrate his efforts onasset-based lending and syndicatedcredit deals locally in the Northeastregion and across the United States.He is responsible for managing andexpanding relationships with financialinstitutions, regional banks, and otherlending institutions in syndicatedtransactions, with typical hold positions ranging from 5 - 25 million.The Commercial Factor April 20177
UPCOMING EVENTSINTERNATIONAL FACTORING ASSOCIATIONTHE WORLD’SLARGESTASSOCIATIONFOR THEFACTORINGINDUSTRYANNUAL CONFERENCEWebinar 1pm - 2pm PDT6/19-20 The Law & Business ofFactoring Training CoursePlanet Hollywood, Las Vegas, NV6/22-23 AE/LO Training CoursePlanet Hollywood, Las Vegas, NV7/27-28 Generating Businessin Today’s New WorldTraining CoursePlanet Hollywood,Las Vegas, NV9/7-8 TransportationFactoring MeetingThe Seelbach Hilton,Louisville, KYAMICUS BRIEF PROGRAMAE CERTIFICATION PROGRAMDISCUSSION GROUPS10/19-20 Advanced Factoring& Legal ForumPlanet Hollywood,Las Vegas, NVLEAD GENERATIONwww.factorsearch.orgDISCOUNTED PRODUCTSFACTORING SURVEY& LEGAL FORMSTRAINING COURSESMENTOR PROGRAMMEETINGS, FORUMS800-563-1895805-773-001110/26-27 How to Compete Against the www.factoring.orgWorld of Fintech - Round 2info@factoring.orgPlanet Hollywood,Las Vegas, NV10/30-31 Advanced AE/LO Training ClassPlanet Hollywood,Las Vegas, NV1/24-26 President’s & Senior2018 Executive’s Meeting& MOREThe IFA offers CLE credits for upcoming programs. For informationon approved programs and states, please contact Heather Villa atinfo@factoring.org or 805-773-0011 ext. 301.These training courses have been approved for CAEF credits.For information on approved programs and courses, pleasecontact Terri Baker at 805-773-0011, ext 303.Mauna Kea Beach Hotel,Hawaii Island, HI2018SOCIAL MEDIACOMMUNITY20175/10 Legal Strategies for FinTechThe International Factoring Association is registered with the National Association of StateBoards of Accountancy (NASBA) as a sponsor of continuing professional education on theNational Registry of CPE Sponsors. State boards of accountancy have final authority on theacceptance of individual courses for CPE credit. Complaints regarding registered sponsors may besubmitted to the National Registry of CPE Sponsors through its website, www.learningmarket.org.
SPRING CONFERENCE ISSUEApril 2017Futurist Dan Burrus Talks Hard and Soft TrendsAbout 35 years ago, I started BurrusResearch, my forecasting company.This is my sixth company that I’vestarted. Five were profitable inthe first year. Three of them werenational leaders in the first year. Oneof them, in the aviation business,had 37 national locations in the firstyear. I’m mentioning that so that thereaders know that I don’t just writeabout things; I actually do them. I’man entrepreneur as well.Daniel Burrus isconsidered one ofthe World’s LeadingFuturists on GlobalTrends and Innovation.The New York Timeshas referred to him as one of the topthree business gurus in the highestdemand as a speaker. Daniel can bereached by phone at 262-367-0949and online at www.Burrus.com.Before I started my first company,I taught biology and physics. I onlymention that so that you knowthat my forecasting methodologiesare based on a scientific approachversus just an idea or something thatseems logical.I’ve written six bestselling books.My last book was Flash Foresight:How to See the Invisible and Do theImpossible and that was a New YorkTimes and Wall Street Journal bestseller as well as being a bestseller inChina and Europe and the books arerequired reading by companies likeBill Lloyd, IBM, Google, AmericanExpress, and Visa.Over the years, what I’ve doneis amass a leading position as atechnology and business trendsforecaster by having accurateforecasts. So let me give you mysecret to how to predict the futureand be right. First of all, I leave outthe parts I can be wrong about. Nowthat sounds funny in a way, but it’salso true. Most people think that theonly thing you can predict about thefuture and know you’re right aboutis death and taxes, but actuallythere are thousands of things youcan be right about if you know howto do it, which is what I teach peoplehow to do in my speeches and in myconsulting and my books.For example, right now it’s winter.Next will be spring, followed bysummer. Well, there’s another onethat you’re sure about, and we knowwhen the stock market goes downit’ll go back up again and it’ll go backdown again, too. Those examples Igave you are cycles, and there’s over500 known cycles that allow you tosee the future other than death andtaxes. So that’s one way to look atthe future. Economists have beenusing cycles to predict the futurefor a long time. The problem is, asThe Commercial Factor April 20179
SPRING CONFERENCE ISSUEApril 2017we all know, economists have beenincreasingly wrong in the last five orten years. Why are they so wrong?That’s because there’s another kindof change that used to be so slowthat economists didn’t have to knowanything about it, but today thatother kind of change is changingyour world and mine in a year ortwo, and that kind of change, economists don’t know about that. That’swhere I’m going to help you.I call it linear/exponential change;linear in that, unlike a cycle, it’s oneway; you’re not going back, andexponential, meaning it’s growing atan exponential speed. An example ofa linear/exponential change is, onceyou get a smartphone, you’re notgoing to go back to a dumb phone.That’s not a cycle. Once the peoplein India park their bicycles and get acar, they’re not go
President, CV Credit Inc. The International Factoring Association’s (IFA) goal is to assist the factoring community by providing information, training, purchasing power and a resource for factors. The . Air Contact Transport is a freight trans-portation company specializing in t
