Stuart Rosenthal Presents at Annual Credit & Bankruptcy Symposium
Prestige Capital’s President, Stuart Rosenthal, recently participated in a panel discussion, “New Opportunities in Asset Based Lending; A Fresh Look at Cannabis, MCA Finance and Factoring” at the American Bankruptcy Institute’s 13th Annual Credit & Bankruptcy Symposium in Connecticut. During the event attendees also heard from a judicial roundtable and discussed other notable topics such as block chain in 2019.
To view photos of the event, click here.
The Secured Lender – Despite Competition, Factors Still Growing
For factors, 2018 was a very solid year for business, with many in the industry experiencing growth across all regions and specialties, whether organically or through acquisition. Despite the good news, industry leaders do note that competition remained erce, and they predict more of the same for the year ahead. Banks continue to be highly liquid, and independent factors are likely to see additional pressure from regional and community banks.
Great Elm Capital Corp. Announces Investment inPrestige Capital
Waltham, Mass., February 22, 2019 – Great Elm Capital Corp. (“we,” “us,” “our” or “GECC”), (NASDAQ: GECC), announced that on February 8, 2019 it acquired 80.0% of the outstanding equity interests inPrestige Capital (“PCC”) from PCC’s retiring founder, Harvey Kaminski. PCC is a commercial finance company specializing in factoring for early stage and mid-sized companies. Alan Eliasof and Stuart Rosenthal, who have each been with PCC and worked with Mr. Kaminski for more than 20 years, will continue to own the remaining equity in PCC. Messrs. Eliasof and Rosenthal will manage PCC as Chief Executive Officer and President, respectively. Mr. Kaminski has agreed to provide consulting services to PCC during its transition over the next year.
“PCC has an excellent, long-term track record of profitably growing its business while maintaining a very strong underwriting culture,” remarked Peter A. Reed, GECC’s Chief Executive Officer. “The combination of PCC’s strong operations and highly scalable business model, further enhanced by the company’s first-class employees, make this an exciting investment for GECC.”
Mr. Eliasof commented, “We are grateful to Mr. Kaminski for his vision and stewardship ofPrestige Capital since its founding in 1985. Over that time, PCC substantially grew its book of factored receivables across a broad set of industries. With our national reach and a strong capital partner like GECC, we expect to be able to further expand PCC’s business of offering customers fast and simple cash flow solutions.”
Mr. Kaminski was advised by Janney Montgomery Scott in his transaction with GECC.
Prestige Capital Corporation, headquartered in Fort Lee, NJ, was founded in 1985. The company specializes in providing liquidity solutions to early stage and small- to mid-sized businesses through the purchase of their invoices. The company’s customers typically have accounts receivable of up to $25 million.
About Great Elm Capital Corp.
Great Elm Capital Corp. is an externally-managed business development company that invests in middle market companies. Its stock is listed on NASDAQ under the ticker symbol “GECC”. GECC’s investment objective is to generate attractive, risk-adjusted returns through both current income and capital appreciation. GECC is managed by Great Elm Capital Management, Inc., or GECM, a wholly-owned subsidiary of Great Elm Capital Group, Inc. (NASDAQ: GEC) (www.greatelmcap.com). Led by Peter A. Reed, GECC’s Chief Executive Officer, GECM’s investment team has more than 100 years of aggregate experience financing and investing in leveraged middle market companies.
About Janney Montgomery Scott
Established in 1832, Janney Montgomery Scott LLC is a leading, full-service investment banking and financial services firm serving individual, corporate, institutional and government clients.
How to Utilize Factoring to Grow Your Technology Business
AI IoT SaaS – Not an Alphabet Soup
By now, most of us know that AI stands for artificial intelligence. But, what is IoT? That is the acronym for the Internet of Things. As we move into the digital space, companies that help bring technology and smart applications are being developed in every sector of our personal and professional lives. So, how do you utilize factoring to grow your technology business?
At Prestige Capital, we are always on the cutting edge of financing new and emerging industries by providing growth capital and liquidity to companies whose revenue streams are not traditional in the factoring industry.
AI, IoT and SaaS Companies We’ve Financed
This past year, we financed a company that provides restaurants with IoT solutions to make their kitchen smart. By using this technology it enhances equipment performance while efficiently handling asset inventory and tracking, both saving the company time and money.
We have also financed an AI toy company. As AI becomes less expensive there are more applications for the consumer market. This innovative company is taking the industry by storm, by providing an interactive product for the consumer.
Additionally, SaaS, Software as Service, is a category that we have been financing for the past few years. Although the receivables are a bit more challenging to finance, due to subscription model style invoicing, our creative team at Prestige Capital has learned the best practices in order to assist these clients with their cash flow.
There will be many new opportunities to utilize factoring to grow your technology business in 2019. So far we’ve seen; software for job searches, smart solutions for cooking, and interactive software for children’s arts and crafts. As you innovate software to improve efficiencies in any targeted industry, know that Prestige Capital will be there to assist in financing your growth.
While working at Prestige Capital for 12 years, I have been privileged to work with a creative and innovative team of professionals. We are always interested in learning about new and emerging industries by providing the capital that they require at the time they are at their height of growth.
Venture capital firms and private equity firms are investing heavily in these industries. However, day-to-day operating capital is something that they do not typically finance. Therefore, these companies turn to Prestige Capital to fund their day-to-day operations by using the liquidity from their accounts receivables as the mechanism to have continuous cash flow.
As an avid reader and podcast listener, I have been on a crash course learning about this industry, and it is fascinating. There are so many ways these companies can utilize factoring to grow their technology businesses. Let’s mix this alphabet soup and continue to cultivate this exciting and emerging sector of our economy!
Are you still a little confused about Factoring? Here are a few of our Frequently Asked Questions about Factoring.
Are you ready to grow your technology business?
Prestige Capital Announces the Promotion of Rachel Hersh to the Position of Sales Director, North America
Fort Lee, N.J. (January 30, 2019) – Rachel Hersh, based in New York and Long Island, was recently promoted to Sales Director, North America at Prestige Capital, a 35-year-old factoring firm based in Ft. Lee, NJ. Rachel has more than 20 years of experience in the factoring industry and will be responsible for continuing to grow Prestige Capital’s footprint in North America.
“In the 12 years that Rachel has been with Prestige, she has successfully expanded partnerships across the continent. This title better reflects the broad reach that Rachel has established and will continue to maintain for Prestige Capital,” said Stuart Rosenthal, Prestige Capital’s Executive Vice President.
Rachel has gained national recognition as one of the most influential and successful business development officers in the factoring industry. She was also featured in 2018 CFA’s Women in Commercial Finance. Rachel has recently been interviewed as a thought leader on the factoring industry on 77WABC Mind Your Business. She is a frequent speaker on finance panels, including seminar presentations to commercial banks, law firms, accounting firms, and has been a speaker at the Daymond John Academy. She has authored numerous articles and has a featured monthly blog.
About Prestige Capital
Prestige Capital founded in 1985, is a commercial finance company which specializes in factoring for early stage and mid-size companies. They purchase invoices from a broad spectrum of businesses whose accounts receivable range from $100,000 to $25 million. Financing situations range from growth financing, refinancing, leverage buyouts, turnaround and DIP financing. For decades, Prestige has been a leader in financing new industries such as artificial intelligence, innovative software, telecommunications, and energy conservation companies, as well as, traditional industries such as staffing, construction, consumer products, and many others. For more information about Prestige Capital, visit: https://prestigecapital.com or call 201-944-4455.