BRB Rules

What is Non-Notification Factoring

by Brandon Wyson5 minutes / June 29, 2021

Financial Advisor with Client going over options.

Non-notification factoring is a type of invoice factoring arrangement between a business and their factor that limits the interaction between the factor and the customer as much as possible. There are a variety of reasons why a business may pursue a non-notification factoring deal, but the results for the business, factor and client are often the same as traditional factoring deals.

Invoice Factoring

Before we delve into how non-notification factoring differs from more traditional factoring, it is important to understand exactly what Invoice Factoring is.

Invoice factoring, sometimes referred to as receivables financing, is the process in which a financial company buys a business’s unpaid invoices for a percentage fee. Factoring massively expedites cashflow for participating businesses, as invoices from accounts receivables that would regularly take 30, 60, or even 120 days to become usable capital can be sold to a factor and quickly turned into cash. When a factor buys an unpaid invoice, they will pay up to 95% up front. The factor will then pay out the remaining percent, minus fees, to the business when the customer pays the invoice. Typically, once a business is approved for factoring, the factor is responsible for collecting on the original invoice meaning the factor, not the business, will then reach out to the customer to redirect collection. This final step functions differently in a non-notification factoring deal.

Normal Invoice Factoring Versus Non-Notification Factoring

Traditional invoice factoring agreements function near-identically for the business, but changes happen in the dealings between the factor and customer. Once a business and factor agree to a non-notification deal, all notifications sent from the factor to the customer are done through white-label forms or forms on the business’s branded stationary or email signature instead of the factor’s. This means that even though the customer is still corresponding with the factor when paying their invoice, it appears they are dealing with the original business.

To further conceal the factor’s identity, payments sent from the customer via postage will often be sent to a PO box instead of directly to the factor. Electronic deposits from a customer will also pay directly to the factor, but because all notifications are sent either with the business’s email signature or branded stationery, it will appear as though they are paying the business directly. Non-notification factoring is a service that attempts to make the invoice process appear more seamless to the customer. By paying invoices that appear to be directly from the business instead of a factor, customers are simply given a more streamlined version of their part of an invoice factoring deal.

Qualifying for Non-Notification Factoring

Traditional invoice factoring qualifications are less stringent compared to other financing options like loans and can be a good choice for businesses like subcontractors. When applying for factoring, a business’s credit score is not nearly as important as the credit scores of the customers who will eventually pay out the invoice. Non-notification factoring, however, will likely have several more requirements. Factors will often look for you to meet several criteria when choosing to make a non-notification deal with a business including:

2 years or more in business
Low risk of bankruptcy
Minimum invoicing rate of $250,000 per month
1 year or more of accounts receivables data
Credit-worthy clients
Your business must fall within services or manufacturing includings

Exact requirements will often vary depending on the factor a business chooses to partner with. When making a non-notification factoring deal, expect that a factor will consider at least some of the requirements listed above, and may have additional requirements not listed.

When to Consider Non-Notification Factoring

Non-notification factoring is a service specifically for the benefit of your customers, particularly when you don’t want them to know you are using a factoring company. Non-notification factoring can also improve a business’s relationship with a customer, as the business’s name and branding will be present for every step of the invoice process. Non-notification factoring may also help in the event a business and customer’s contract restricts the use of a factor. Such contracts usually bar a factor from sending notifications to the customer, so non-notification factoring often means a business can take advantage of the cash flow benefits of factoring and stay within the grounds of their contract. Businesses seeking a non-notification factoring deal because of contractual obligations will often need to share the contract with their factor.

Any time where a third-party contribution may hurt the relationship between a business and their customer, non-notification factoring may be an effective compromise. Non-notification deals, however, require a strong relationship between a business and their factor, as the factor must essentially act as the business when collecting for the invoice.

Weigh your Options and Speak to a Professional

Every financial situation is different. The most effective way to learn if you would benefit from a non-notification factoring deal or invoice factoring in general, is to speak to a lender or a financing professional. Invoice factoring is a massively helpful tool in increasing a business’s cash flow without the potential of debt brought on by a loan. If your arrangements with a customer could benefit from increased discretion or if you are interested in learning more about how a non-notification factoring deal may help you business, get in contact with a Kapitus specialist who can address your situation.

Brandon Wyson

Content Writer

Brandon Wyson is a professional writer, editor, and translator with more than nine years of experience across three continents. He became a full-time writer with Kapitus in 2021 after working as a local journalist for multiple publications in New York City and Boston. Before this, he worked as a translator for the Japanese entertainment industry. Today Brandon writes educational articles about small business interests.

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Purchase Order Financing For Government Contracts

Manage Your Money

by Vince Calio4 minutes / June 21, 2021

KEY TAKEAWAYS

In general, PO financing allows businesses to fulfill orders and cover supplier costs without impacting their ability to cover operation costs.
With PO financing you do not have to rely on personal credit to get a loan, rather, lenders rely on the credit of the government, when using this financing to to land federal contracts.
This financial product can offers up to 100% funding and provides flexibility for businesses with customizable payment plans and loan sizes.

The money set aside for federal government contracts is set to grow even larger in the second half of 2021, and as business owners prepare to try and get their pieces of the pie, one of the financing vehicles that can help them is government purchase order financing.

What is Purchase Order Financing?

Purchase order financing, (PO financing) is a form of short term business financing that enables your business to pay suppliers to get paid for goods and services avoiding the risk of late delivery and losing government contracts. It is offered by both traditional and alternative lenders.

The advantages of using this type of financing are endless. Through PO financing:

The lender will take on invoice collection responsibility with your customer;
You can maintain your existing cash flow without having to take on new debt;
You can fulfill orders and cover supplier costs without impacting your ability to cover operation costs, and
PO financing will allow you to grow your business by showing potential customers your ability to quickly supply goods and services.

By using alternative lenders such as Kapitus, the application will be simple; depending on the creditworthiness of the customer, your PO Financing rates can be as low as 1.25%, and you often can get approval within a day.

Government Contracts Are a Gold Mine

The federal government offered $682 billion worth of contracts to private businesses in 2020, a 14% increase from 2019, and is set to offer an even higher amount in the next fiscal year, making it a gold mine for both small and big businesses alike. Contracts for health care providers and medical equipment suppliers jumped 50% in 2020, due in large part to the COVID-19 pandemic. Contracts for IT services – a field in which many small businesses operate – have grown by an average of $6.8 billion year-over-year since 2015, while contracts for miscellaneous services such as small construction and architectural projects and legal services are also expected to increase this fiscal year.

Small businesses are expected to continue to benefit from government contracts this upcoming fiscal year, as the federal government’s contracting program will continue to ensure that a “fair proportion” of federal contract and subcontract dollars is awarded to small businesses.

The government, under its Small Business Goaling Report, reserves contracts that have an anticipated value greater than the $10,000 micro-purchase threshold, but not greater than the $250,000 simplified acquisition threshold exclusively for small businesses. It also authorizes federal agencies to set aside contracts that have an anticipated value greater than the simplified acquisition threshold exclusively for small businesses and authorizes federal agencies to make sole-source awards to small businesses when the award could not otherwise be made.

Simply put, whether you’re a small medical research or supply company; a construction firm; an IT company; a law firm or even a small car dealership, there are all sorts of government contracts out there waiting for your business to bid on.

PO Financing for Government Contracts

If you do decide to try and take a slice of the government pie by bidding on a contract, you’re most likely going to need PO financing, since most government contracts require a large amount of materials. No matter what type of government contract you are bidding on, be it a Work-in-Progress or a Finished Goods contract, PO financing will enable your business to fill orders and avoid the risk of late delivery that could cause you to lose a government contract altogether.

PO financing for government contracts allows your company to:

Bid on large government contracts by providing 100% funding for the transaction;
Have greater availability to funds than standard business orders;
Not have to rely on personal credit to get a loan, rather, lenders rely on the credit of the end-customer (and who has better credit than the federal government?), and
Have access to flexible payment plans and loan sizes, depending on the business cycles and opportunities.

In all, while government contracts are highly competitive–especially for small businesses–your company needs to be ready with the supplies when you bid on them. PO financing will give you the funds and the flexibility to grow your business when you are ready to grab a piece of the government pie.

Vince Calio

Content Writer

Vince Calio has been a writer for Kapitus since 2021. Before that, he spent three years operating a dry-cleaning store in Rahway, NJ that he inherited before selling the business, so he’s familiar with the challenges of operating a small business. Prior to that, Vince spent 14 years as both a financial journalist and content writer, most notably with Institutional Investor News and Crain Communications.

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A Doctor’s Guide to Medical Practice Loans

Industry Challenges

by Vince Calio7 minutes / June 18, 2021

Close up of a senior woman and her daughter having a doctors appointment

Getting financing for health care practices shouldn’t have to be as complicated as surgery.

No matter what type of health care professional you are, you’re going to need state-of-the-art equipment, computers and office space to ensure a successful practice.

A variety of medical practice loans exist that considers the unique needs and qualifications of health care professionals, such as high student debt, the fact that medical office revenue streams are more unique than other types of businesses, and irregular insurance payments.

Financial pressure ramped up on the US healthcare system during the COVID-19 pandemic, as many providers were forced to replace outdated equipment, expand their facilities and hire more professionals. Post pandemic, the demand for financing in this sector should be on the rise to tackle higher patient volumes and the need for new equipment and technology to accommodate new practice offerings, such as telehealth.

Given the need for financing, there are a lot of options out there. Healthcare financing, depending on the lender, can apply to (but is not limited to):

Independent primary care physicians
Ambulatory care facilities
One room surgical facilities
Specialists, such as orthopedists, ophthalmologists and podiatrists
Optometrists
Veterinarians
Dentists
Mental health professionals
Chiropractors
Alternative medicine specialists
Licensed masseuses

Types of medical practice financing include:

Alternative Lenders Such as Helix Healthcare Financing

If you’re a health care practitioner that needs financing, there are a lot of traditional lenders out there ready to offer you deals. Those deals, however, could require long wait times and complicated application processes. One alternative lending process you may want to explore is online lending.

As such, Kapitus offers a variety of lending options through its Helix Healthcare Financing, an online financing option that specifically addresses health care practices. With Helix, you can get a wide array of financing options with a pricing grid that is tailor-made for independent medical practices and that can meet your unique cash flow needs.

The qualifications for Helix financing are most likely simpler than the requirements from traditional lenders. You’ll need:

A FICO score of at least 600;
A practice that is at least six months old;
An annual revenue of at least $120,000, and
You must be a licensed practitioner.

Helix financing can give you the ability to consolidate debt and get rid of those high interest credit cards you may have been using to finance your practice and can offer you everything from equipment financing and revenue-based financing to term loans to increase your cash flow.

The bottom line with Helix and other online lenders is that they are generally more accessible and may be able to offer a better cost of financing than traditional lenders. Their emergence over the past year has been in direct response to the difficulty many medical practitioners have had in getting financing from traditional sources, especially after the financial crisis brought about by the COVID-19 pandemic.

SBA 7(a) Loan

The most widely used vehicle for medical practice financing is often the one that is the most difficult to obtain: the SBA 7(a) loan. This is often sought after by medical practitioners because it typically offers the lowest APR rates and carries loan terms longer than most traditional lenders – 5 to 25 years. It also carries a maximum loan amount of up to $5 million, and 85% of the loans of up to $150,000, and 75% of loans greater than $150,000 are guaranteed by the SBA.

It does have its drawbacks, however. If you’re just starting your practice, this is not the type of financing for you, as an SBA loan usually requires years in business and a strong business credit score. It also requires collateral for loans of more than $350,000. Because the terms are so favorable, competition for this type of financing is fierce. You also are going to run into:

A long, competitive application process,
An extended underwriting process, and
A long timeline to capital access.

Traditional Bank Loan

The pros of traditional bank loans are that many banks offer financing products specifically tailored to the unique needs of health care practices. These loans, however, are difficult to obtain as they usually require years in business, high credit scores and high annual revenues.

Approval for a traditional bank loan and access to cash can often take months, so this might be the right type of financing if you have long-term plans such as acquiring another medical practice or looking to purchase new real estate to expand your business.

Term Loan

A term loan is a lump sum of cash that is paid back over a predetermined period of time. While term loans are offered by traditional banks, online lenders have become increasingly popular in the post-pandemic era as they more often offer lending services specifically designed to meet the needs of healthcare practices, have less stringent borrowing requirements than a traditional bank, and a quicker approval process.

Because online lenders generally may be willing to take on more risk than banks, however, they may charge a higher APR. You should take the time to explore the different pricing grids offered by various online lenders to see what is right for you.

Short-Term Loan

Short-term loans are generally provided by alternative lenders and are great if you need cash quickly. You generally can obtain these loans if you have a high, predictable monthly cash flow.

If you are a veterinarian looking to quickly purchase a new dog kennel or a chiropractor looking to buy new beds for your patients, for example, this may be the right product for you.

Keep in mind, however, that while the processing time for short-term debt is relatively quick, these types of loans typically carry a higher interest rate relative to a bank or SBA loan.

A Business Line of Credit

Business lines of credit act like credit cards for your business and are offered by both traditional and alternative lenders. They could be ideal for mental health practitioners who are not seeking to purchase specific medical equipment, but perhaps are seeking furniture, larger office space and computer equipment.

The advantages they offer are that, like credit cards, you will only pay interest on the money borrowed, and they will offer you quick access to funds and flexible repayment terms. They are not ideal, however, for one-off investments, and like a credit card, the fees and interest rates can add up if you’re not careful in your spending.

Equipment Financing

Equipment financing is offered by both traditional and alternative lenders, but through online lenders, the borrowing terms are generally more relaxed and approval is often quicker. It is a great financing tool if you are a medical specialist such as an independent orthopedist and are seeking a new x-ray or MRI machine, or perhaps new computer equipment. Collateral on this type of financing is generally not required, and they are often easier to qualify for. If you are just setting up your practice, this could be a great financing tool for you, as you will own the equipment rather than leasing it.

The general cons of equipment financing are that the funds can only be used to purchase the equipment you specified in the terms of the loan, and that certain pieces of equipment that may become outdated quickly may carry higher interest rates.

The Bottom Line

As a medical professional, you shouldn’t have a difficult time finding financing that is right for you, as lenders generally consider health care practices to be more lucrative than other business sectors. You should sit down with your accountant or financial expert to go over which type of financing is best for your particular practice, and target what the best terms and rates will be for you.

Vince Calio

Content Writer

Vince Calio has been a writer for Kapitus since 2021. Before that, he spent three years operating a dry-cleaning store in Rahway, NJ that he inherited before selling the business, so he’s familiar with the challenges of operating a small business. Prior to that, Vince spent 14 years as both a financial journalist and content writer, most notably with Institutional Investor News and Crain Communications.

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What Is Staffing Factoring And How Does It Work

Manage Your Money

by Brandon Wyson7 minutes / June 14, 2021

Staffing factoring is a subset of invoice factoring, a type of business financing commonly used by several industries to maximize cash flow and more effectively fund day-to-day operations by allowing businesses access to expedited cash without taking on debt. A company performing invoice factoring services – commonly known as a factor – purchases invoices at a discount from business-to-business (B2B) and business-to-government (B2G) companies. The factor pays out a portion of the receivable upfront. This means that the capital from an invoice that would usually payout in 30, 60 or 90 days is immediately usable. Factors will take anywhere from 1% to 3% of an invoice as a fee and pay out the remaining amount of the invoice to the company when the invoice is actually paid. Staffing factoring, which is also sometimes referred to as payroll factoring, specifically applies to staffing companies which organize and assign temporary employees. Staffing agencies regularly partner with factors because invoices from temporary workers traditionally take several weeks to pay out.

How Staffing Factoring Works

Similar to traditional invoice factoring, staffing factoring offers cash for unpaid invoices. Because the factor is purchasing your invoices, you won’t be making monthly payments like in the case of a business loan. Instead, the factor pays you a percentage of the invoice upfront, then once the invoice has been paid by your client, the factor will pay you the rest of the invoice amount minus fees.

Because invoice factoring involves three parties – a staffing agency, a staffing agency’s customer, and a factor company – there are more steps to the process than you would find with more traditional forms of financing. Here’s how staffing factoring works, step by step:

You invoice your customer.
You sell the invoice to the factor.
The factor pays you an advance on the invoice
Your customer makes payment on the invoice to the factor
The factor forwards you the remaining amount, minus any fees

Recourse or Non-Recourse?

Companies may have to decide whether to use non-recourse loans or recourse factoring when partnering with a factor. Recourse factoring means that in the unlikely event an invoice is not paid, you – the staffing agency – are essentially responsible. Non-recourse factoring, however, means that the factor will take the bulk of the risk in the event of an unpaid invoice. Many factors offer non-recourse agreements that apply only when an invoice is unpaid because an agency’s customer company is declaring bankruptcy.

Depending on a staffing agency’s size and cash flow, either recourse or non-recourse factoring may be a viable choice. A factoring company may offer better terms to a staffing company if they allow for recourse factoring. If a staffing agency and their customers have exceedingly good credit, a factoring company may pursue non-recourse. Every agency’s situation is unique, so consult relevant parties before deciding whether to pursue recourse or non-recourse factoring.

Is Staffing Factoring Right for Your Business

Staffing agencies frequently turn to invoice factoring to improve cash flow. Staffing companies are especially vulnerable to gaps in capital since agencies are typically paid anywhere from two weeks to up to three months after staff are assigned in either permanent or temporary staffing roles. Staffing factoring most directly benefits companies that have a consistent flow of invoices or a large staff of temporary employees. Staffing agencies looking to increase their number of temporary employees, then, could greatly benefit from working together with a factor. Instead of paying temporary employees with the previous week’s paid-out invoices, a staffing factoring company allows an agency to pay their temporary employees more directly and efficiently.

Qualifying for Staffing Factoring

While staffing factoring is not a loan, agencies may need to consider certain qualifications to partner with a staffing factoring or payroll funding company. Like any other financing company, staffing factoring companies may want to see that an agency’s invoices are consistent and meet the minimum threshold for invoice factoring. When seeking staffing factoring, an agency’s own credit is considerably less important than the credit of the agency’s customers. Staffing agencies with less than perfect credit are still very likely able to qualify for invoice factoring if the credit of their invoiced customer is strong. Factoring companies may also prefer agencies that have been in business for more than two years. Staffing agency invoices from temporary employees are especially attractive to factoring companies because the outstanding invoices will almost certainly be paid since the temporary employee already completed their hours. Staffing invoices are traditionally submitted with timecards as well which act as a secondary guarantee that services were rendered.

Benefits of Staffing Factoring

Cash flow: The most direct benefit to staffing factoring is a quick increase in cash flow. This quick increase in on-hand capital can alleviate cash gaps that could impact day-to-day operations.

No Associated Debt: Rather than taking out a loan, staffing factoring lets a staffing agency hold more capital without the traditional expectation of repayment. Once a factor purchases a staffing agency’s invoices, the factor will take on the collection of the invoice. Both loans and factoring are strategies to expand an agency’s amount of liquid capital. While a loan offers capital in exchange for the guarantee it will be repaid, factoring simply expedites money already guaranteed to an agency from their own invoices.

Better Customer & Employee Experiences: Companies offering invoice factoring services are not borrowers. Working with a factor is a partnership. Factors are financial companies and will often be more than happy to meet and consult with an agency to determine the best financial moves for their unique business. Factors may also be able to help agencies make better informed choices about which customer companies to partner with in the future.

Cons and Potential Problems with Staffing Factoring

Staffing factoring has one key downside that may turn away staffing agencies. Transactions with staffing factoring companies typically charge a 1% to 4% fee. Depending on the cash value of an invoice, agencies may decide that the fee paid to the invoice factoring company may not be worth the cost. Larger staffing agencies may then forgo staffing factoring in exchange for other kinds of capital guarantees.

Recourse factoring may also push some businesses away from staffing factoring. In the case of a recourse factoring agreement, if a customer merchant cannot pay an invoice, the staffing agency is fully responsible for the amount drawn. An agency, then, may consider the factoring agreement superfluous since they are still accountable for the bad invoice. When partnering with a staffing factoring company, agencies should weigh whether to pursue non-recourse or recourse factoring based on the credit and trustworthiness of their own customers.

Bottomline on Staffing Factoring

Cash flow is king in the staffing industry. If an agency has more capital on hand it can maintain higher liquidity after payroll, and widen its prospects. Depending on the size of a staffing agency, invoice factoring can expedite growth as efficiently as a loan, but without the worry of taking on debt.

Invoice factoring agencies are an invaluable partner to staffing agencies. Working together with a factor allows an agency to take better-calculated risks when partnering with new clients and can benefit an agency’s credit. As an agency expands and builds a relationship with its factor, an invoice factoring company can quickly become a resource for making more informed business decisions.

When deciding to partner with a factor, staffing agencies must consider how valuable on-hand capital is at their current capacity. For example: if an agency can use expedited capital to keep its business sustainable, staffing factoring can be a great resource. If a company has a density of unpaid invoices that leaves most of their capital on a weeks-long countdown, staffing factoring can speed up opportunities for growth that would regularly take much longer.

Invoice factoring offers agencies the financial flexibility to potentially take on larger accounts and expedite their own growth. Especially in the staffing industry, having more on-hand capital makes your agency more competitive, well-positioned and poised to grow.

If your agency is interested in learning more about invoice factoring and staffing factoring, get in touch with a Kapitus financing specialist who can walk you through the options available to you based on your unique situation.

Brandon Wyson

Content Writer

Brandon Wyson is a professional writer, editor, and translator with more than nine years of experience across three continents. He became a full-time writer with Kapitus in 2021 after working as a local journalist for multiple publications in New York City and Boston. Before this, he worked as a translator for the Japanese entertainment industry. Today Brandon writes educational articles about small business interests.

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How to Manage Your Company’s Financial Turnaround

Manage Your Money

by Vince Calio5 minutes / June 8, 2021

Managing your financial turn around strategy

KEY TAKEAWAYS

Navigate your business’ financial challenges by implementing effective cash flow strategies, such as prioritizing timely collection of invoices and exploring alternative financing options such as invoice factoring.
Strengthen financial stability by negotiating mutually beneficial vendor contracts, exploring agreements that allow for price adjustments on bulk orders and extended payment terms.
Drive financial turnaround by identifying and eliminating costly operational redundancies.

If you’re a small business owner, you probably took a major financial hit during the dark times of the COVID-19 pandemic. Right now however, you should probably be congratulating yourself – you survived over a year of turmoil!

With a light at the end of the tunnel shining brightly as more Americans get vaccinated, now is the perfect time to plan your company’s financial turnaround, provided you’re willing to rethink your operations, cash flow, employment situation and potential financing.

How To Rethink Your Business Cash Flow

Maintaining a healthy cash flow is one of the most important aspects of running a business, as it impacts every area of day-to-day operations – both current and future. If the last year and a half taught us anything, it’s that you never know what can come around the corner and negatively impact your cash flow, so it’s important to address this head-on, and there are a number of areas where you can do that, but a great place to start is your collections and billing processes.

Tackle those outstanding invoices

Lazy bookkeeping, the pandemic, and other factors could have resulted in a negative cash flow for your business over the past year. While outstanding invoices are positive assets on your company’s balance sheet, they are useless until your customers actually pay them. If you’re behind on collecting invoices, or if your customers are slow to pay, one strategy that could be useful to you is invoice factoring – financing that quickly provides you with cash tied up in outstanding invoices.

Review and Adjust Your Process

As you ramp back up post-pandemic, take advantage of the opportunity to do a complete review of your billing and collections policies. Many times, a review will reveal some holes and/or inefficiencies that, if corrected, can have a substantial impact on cash-flow stability. Once you’ve defined any gaps, consider implementing invoice management software, such as Quickbooks or Invoice2Go – useful tools that can automate the invoice, payment processing and collections systems for your business.

Negotiate with Vendors

Healthy vendor relationships are almost as important as a healthy cash flow, and one way to maintain a great relationship with your vendors and suppliers is to negotiate contracts that are mutually beneficial. Suppliers generally want to keep you as a customer, so it never hurts to ask them if you can renegotiate prices and payment options, at least until the economy gets back on its feet. Be honest about your financial situation and propose a solution that seems mutually beneficial, such as longer-term payment options.

Restructuring Your Business Should Be a Consideration in Your Company’s Turnaround

Operational restructuring should be a major consideration in any organization’s financial turnaround. Look for costly and redundant processes in your business and have a plan to streamline or outsource them. Consider that it could be cheaper to outsource certain services to freelancers or outside firms. For example, if you’re a small publishing company, it may be cheaper to streamline production services for all of your publications and hire freelance writers. If you’re a doctor’s office, for example, it may be cheaper to outsource x-ray analysis work to radiologists in a different country.

Prepare Your Business for Rapid Growth

As the COVID-19 pandemic winds down, most small business owners and economists are expecting the economy to grow. The national unemployment rate dropped to 6.1% in April from 14.8% a year ago, according to the Bureau of Labor Statistics. Consumer spending has increased by over 40% in 2021, while it was down by nearly 30% in 2020, according to the Bureau of Economic Analysis.

Whether you’re a construction company, a restaurant or retailer, you need to be ready to handle this growth. You should sit down with your accountant and produce a realistic, three-year business plan that accounts for an increase in sales, operational growth and an increase in your number of employees. Some factors to consider:

During the pandemic, employees have gotten a taste of working from the comfort of their own homes. If you’re a small business that operates out of an office and you want to permanently move to a remote working environment, you should consider relocating your company headquarters to a smaller, less expensive and more tax-friendly location. However, if you do this, talk to your accountant about the tax implications.
Consider financing to handle growth. More business should be coming your way over the next year. Whether you’re a construction company that needs a new excavator, or a restaurant owner that wants a new brick oven to make your famous pizzas, you may consider new financing that you can repay as your business grows. Kapitus offers a wide array of financing options such as equipment financing, a new line of credit or a business loan that could help you with that.
As business grows, you will probably need to hire additional employees. When you do, it is important to make sure that you are hiring within your means. The number of additional staffers you hire should be in lockstep with the rate at which your business is growing.

While the pandemic was a source of severe economic strain for many small businesses, there is a bit of a silver lining: It has created a valuable opportunity to rework aspects of your business that you may have had to put on hold in the past, which puts you on the road to recovery while providing a stronger foundation for your business in the future.

Vince Calio

Content Writer

Vince Calio has been a writer for Kapitus since 2021. Before that, he spent three years operating a dry-cleaning store in Rahway, NJ that he inherited before selling the business, so he’s familiar with the challenges of operating a small business. Prior to that, Vince spent 14 years as both a financial journalist and content writer, most notably with Institutional Investor News and Crain Communications.

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How Plumbers Can Optimize Cash Flow

Industry Challenges

by Kelley Katsanos7 minutes / April 12, 2021

Optimize cash flow at your plumbing business

One of the main reasons small businesses fail is lack of cash. And it’s possible to have no cash even if your business is making a profit. That’s because assets, like accounts receivables, are not cash until you’re able to collect what’s owed to you by your customers. Profit, in this case, will not pay your bills. This is why it’s essential to keep an eye on cash flow at your plumbing business. Doing so will ensure that the amount of cash generated by your business is sufficient to pay your immediate operating expenses, such as business loans, payroll, and rent.

Here are some key steps every plumbing business owner should take in order to optimize their cash flow.

Automate Invoices

Choosing to automate your invoices is beneficial to your plumbing business because you’ll get paid faster. This can be done easily by using accounting software, which can automate time and expense tracking, recurring invoices, late payment reminders, billing, appointment scheduling and more for your plumbing services. For instance, FreshBooks, an all-in-one accounting plumbing software solution, can manage all your bookkeeping needs — everything from creating invoices to managing cash flow and tracking employee time.

Overall, the faster you receive payments, the better. Anything that can help you maintain a steady cash flow to pay your employees and cover your business expenses is something worth looking into.

Forecast Your Cash Flow

Be sure to draft a forecast of your cash flow to ensure you have enough money to pay all upcoming bills. This will allow you to plan a cash flow budget, which should include an estimate of all cash receipts and all cash expenditures that are expected to occur at your plumbing business during a specific time period. You can make these estimates on a monthly, bimonthly or quarterly basis. Your cash flow budget should show you when money is coming in, when it will go out and what money remains each month after you’ve paid your expenses and recorded your income. To help with this task, you can use a cash flow management software solution. Many of these solutions integrate with various accounting software platforms if needed.

Outsource When Needed

Outsourcing allows you to leverage outside expertise for certain workflows, such as payroll, accounting, taxes, office cleaning, marketing and more, which can benefit your plumbing business in many ways. By choosing to outsource, you can save money by converting fixed costs into a variable expense. With outsourcing, you can decrease the labor costs of full-time employees, reduce overhead and increase plumbers cash flow. Outsourcing partners are essentially subject matter experts, so they will already have the tools and know-how for specific tasks. In turn, they can reduce the learning curve and improve workflow efficiency, saving you valuable time to focus on your core business. Additionally, outsourcing can help you grow your plumbing business by freeing-up capital to secure small business funding.

Cut Operating Costs

There are several ways to reduce costs and increase cash flow without negatively affecting your core plumbing business. You may want to start with the following:

Hire an accountant to prepare your taxes. An accountant can help you discover tax breaks and deductions to keep your business growing.
Review your insurance policies to make sure deductibles, premiums and liability coverage are both affordable and appropriate for your current business needs.
Further, evaluate your advertising campaigns to determine if they are effective enough to justify the cost.
Decrease paper filing work and paper storage at your office by using free or low-cost cloud storage.

Overall, to optimize your cash flow, prioritize your needs and cut costs in places where you’re not finding value.

Offer Flexible Payment Options

Flexible payment options – such as allowing clients to pay by cash, checks and credit cards – will make it easier for your customers to pay for your plumbing services. In addition to traditional payment methods, be sure to consider online payments or mobile payment options, which have become increasingly popular over recent years. Online payment options give your business an inexpensive, faster and reliable way to do business while offering your customers convenience and security.

There are also secure credit card payment processing solutions. EMSmobile, for instance, is specifically geared toward plumbers, roofers, electr

icians and other traveling business professionals. With this particular solution, you can accept payments right on the job.

Keep in mind, as with any payment method, there are advantages and disadvantages. However, to optimize your cash flow, you should offer your customers payment options that will work best for them. Doing so will allow you to get paid on time, every time.

Stay on Top of Accounts Receivable

It’s imperative to keep up-to-date on your customers’ accounts and inquire about unpaid invoices in order to promote a positive cash flow. Do this by reviewing all of your accounts receivable on a regular basis.

For customers paying for your plumbing services in installments, send reminders for payment when necessary. You can also try installment payment software to streamline this process. Installment payment software can facilitate your business’s ability to offer your customers the option to purchase an item over time through a set number of regular payments. You then have the choice to implement the software yourself or utilize a SaaS tool to provide installment payment capabilities. In those instances, the service will pay your business the full price of the item upfront and then remit the installment payments from the customer. This will help eliminate unnecessary strain on your cash flow.

Stall Your Supplier Payments

Delaying payments to your suppliers when you are able to can help increase your cash flow.

In fact, many U.S. companies are holding back payments to their suppliers for longer than at any point in the past decade, according to The Wall Street Journal. This allows them to keep more cash on hand that otherwise would be tied up in their businesses.

To keep a good relationship with your supplier, it’s important to be sure that you’re not breaking any agreements before you decide to delay any payments.

Request Deposits

Ask for a deposit when taking on a long-term contract to help maximize your cash flow. For instance, you can ask for a 10 percent deposit upfront, and after the job has begun, the remaining amounts can be paid per your agreement. This allows you to have some additional cash flow while waiting for, let’s say, the electrician or general contractor to finish up on items that they need to do in order to pass a plumbing rough-in inspection.

Raise Your Pricing

Raising your prices won’t necessarily affect your customer base, but it can make a big difference to your bottom line and cash flow. Play around with the numbers and try to predict what will happen if you raise your prices by 10 percent or 20 percent. Then, evaluate the market to ensure you remain competitive. You may even realize that you’re pricing your services too low to begin with.

By considering these cash flow tips, you’ll be on the right track to having the necessary cash to sustain or grow your plumbing business. Keep in mind, you can always work with your accountant to review how cash circulates through your business if you’re having trouble developing a solid system to track cash flow.

Kelley Katsanos

Kelley Katsanos is a freelance writer specializing in business and technology. She has previously worked in business roles involving marketing analysis and competitive intelligence. Her freelance work appears at IBM Midsize Insider, Houston Chronicle's chron.com, and AZ Central Small Business. Katsanos earned a Master of Science in Information Management from Arizona State University as well as a bachelor's degree in Business with an emphasis in marketing. Her interests include information security, marketing strategy, and business process improvement.

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Life-Saving Measures for Small Businesses on the Brink of Closure

Operating Your Business

by E. Napoletano4 minutes / October 12, 2020

Life-saving measures for small businesses on the brink of closure

No matter what part of the country you’re in, you have small business-owning neighbors struggling to keep the lights on. With erratic reopening plans, caseloads that still won’t decline, and the need for social distancing until there’s a widely-available vaccine, countless businesses have been hit hard. But what can be done? Are there any life-saving measures for small businesses on the brink of closure?

If you’re a business owner in this situation, you could find enough relief to keep your doors open and critical staff employed using one (or all) of the options below.

Review Your Expenses

While you might have already done this back in March, it might be time to review your expenses again.

Instead of eyeing luxury expenses this time around, put an eye toward ways to discontinue some low-margin services and supplies until traffic gets back to pre-pandemic levels again. This could mean paring-down your menu, hiring a delivery person instead of subcontracting to meal delivery services, liquidating inventory at a deep discount to reduce warehouse space, or even limiting workdays to the most profitable days and hours.

When evaluating expenses to cut, don’t think of these expenses as permanently on the chopping block. Instead, you can bring them back and build back up when life and revenue pick up speed once again.

Get Creative With Payment Arrangements

If you’re strapped for cash, your vendors may be as well. Reach out to your accounts payable and start a conversation about mutually-beneficial payment arrangements.

For example, if you can promise $X toward your invoice every two weeks, that’s better for your vendor than zero dollars. Your vendor gets a predictable cash flow, and you get a reasonable payment arrangement.

If you and a vendor do mutual business (they invoice you and you invoice them), set up a call for an invoice review. Explore creative options like applying their invoice for $1000 to your invoice for $800. You’ll still owe them $200, but it’s a lot better than $1000. This is a simple solution that often slips through the cracks because your AP and AR systems might not communicate with one another.

Explore SBA Loan Options

While the Paycheck Protection Program is no longer offered, there are three other SBA loan options you can explore for a much-needed cash infusion:

Economic Injury Disaster Loan (EIDL): If you’re experiencing a loss of revenue due to COVID-19, you could be eligible. Terms are 3.75% interest (fixed) for up to 30 years with no pre-payment penalty. You can even defer payments for up to one year (but interest will still accrue).
SBA Express Bridge Loan: If you have an existing relationship with an SBA lender, you may qualify for a loan up to $25,000. These loans can be regular term loans or bridge the gap between today and approval for your EIDL Loan. You just need to reach out to your existing SBA lender to inquire.
SBA Debt Relief: If you have an existing SBA loan and have trouble making payments due to COVID-related financial hardship, this program can bring you relief. Eligible loans include “7(a), 504, and Microloans in regular servicing status as well as new 7(a), 504, and Microloans disbursed prior to September 27, 2020″ per the SBA. If you qualify, the SBA will pay any principal, interest, and fees on your loan for six months.

Have a Candid Conversation with Your Bank

Finally, it could pay to sit down and have a candid conversation with your bank. Your bank doesn’t want to lose your business or see you default on lines of credit or other loans. You could find they’re willing to work with you if they know your full financial picture.

There aren’t any guarantees that your bank could come through with funds or reprieves from payments due. But, if you don’t start the conversation, you’ll never know what’s possible.

Have any other tips or advice on life-saving measures for small businesses? Let us know.

E. Napoletano

When you want your audience to listen, you have to give them a reason. Erika Napoletano has been found and written those reasons since 2007 -- colloquial, concise, and captivating are her daily writing mantras. Her work ranges from business and marketing topics to those in gender, health, consumer medicine, real estate, and personal finance. As a freelance writer with over seven years of experience, you can find her work on American Express OPEN Forum, Entrepreneur Magazine, Chicago Health Magazine, Trulia, PNC CFO, Yesware, Payment Week and more. As a formerly licensed financial professional (Series 7, 66, 31 and life/health producer), she's at home with compliance-sensitive topics and can make even the most tedious subjects sing. She's also the award-winning author of two books and lives in Glendale, CA.

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How to Support Minority Owned Businesses

Being a Business Owner

by E. Napoletano4 minutes / August 19, 2020

Food Shop Owner Holding Up Open Sign Indicating He's Open For Business

In response to recent and ongoing events in the country, you may be taking stock of how and with whom you do business and, ultimately, how to support minority owned businesses.. With minority-owned businesses totaling over one million businesses in the U.S., it’s not a difficult task to find businesses in your local community that can allow you to put your money where your mouth is when it comes to diversity and inclusion.
Here’s the challenge: Your effort has to be intentional. If you keep doing business the way you’ve always done business and with the businesses you’ve always done business with, change will be slow if not nonexistent. You might be donating money to well-deserving causes, but your wallet isn’t backing up your thoughts.
To help you both work and shop with intention and purpose, several minority business owners shared their thoughts on how the public – and other businesses – can support minority-owned businesses.

Go Easy with the Assumptions

As a publicist at The PR Shoppe, Carolyn Fraser’s job is to help other brands and businesses shine. As a certified minority- and woman-owned business, she’s been on the receiving end of assumptions in the business community, and often from her colleagues.
“I’ve had colleagues make decisions on my behalf because they ‘just knew’ my situation,” says Fraser. “One associate actually told a vendor that I ‘probably didn’t have much of a budget’ for a project, when in fact, money wasn’t a factor.”
If you find yourself assuming something about a colleague or vendor of color, step back and ask, “What am I basing this assumption on?” Is it first-hand information? Is it apparel or hairstyle? Is it the feeling that you’re in a new situation and unfamiliar with how this business does business?
Whatever your answer, the critical part is that you’re asking that question on the regular. Minority-owned businesses don’t benefit from your assumptions.
“Allow my work to speak for itself and give me a chance to wow you,” says Fraser. In the process, you just might wow yourself.

Commit to Collaboration

Kendra Hill’s day-in, day-out, is helping businesses worldwide achieve new heights and grow their businesses. Collaboration is a leading tool that creates the results her clients crave. She recommends that any business serious about a commitment to diversity and inclusion establish ways to collaborate with minority-owned businesses.
“A lot of people have huge platforms and engaging audiences,” she says. “Collaborating with BIPOCs on a project, such as a freebie, product bundle, or Instagram Live event, will expose [a business] to a whole new audience that they could potentially monetize.”
For example, one of Hill’s white counterparts invited her to take over her Instagram account of nearly 60,000 followers. Not only was Hill able to gain several new followers, but she also gained a couple of clients who then shared Hill with their networks.
“From this one collaboration, my white counterpart was able to align herself as an ally to the BIPOC community, and I was able to make over $100,000 in retainer fees from my new client base.”

Spread the Word

Cheri Williams-Franklin founded her business, LifeSnapshot so that other families wouldn’t have to endure what she did following the death of a loved one. As a platform that helps families organize and securely store personal assets and final wishes information so their loved ones can easily find it while dealing with overwhelming grief, it isn’t just for other minorities.
“Death is the universal commonality that we all have that transcends income, education, race, gender, and sexual orientation,” says Williams-Franklin.
When you find a business that benefits you in your search to diversify your wallet and make it more inclusive, Williams-Franklin wants you not to be shy about your good experiences.
“The greatest form of support for minority business owners comes from visibility and public awareness that our companies exist,” she says. “The public can make purchases of goods and services, provide positive word-of-mouth, and testimonials. Taking these steps will increase exposure, which often enables organizations to thrive as many of the products and services being offered benefit most Americans – not just a specific minority class.”
Checking assumptions, collaboration, and sharing positive experiences are three ways to put your wallet and voice to work in your local business community. If you’re a business owner and ally to the minority-owned business community, consider joining your local Urban League chapter or Black Chamber of Commerce. You’ll form powerful alliances, increase your network, and ensure that your business practices benefit from the experiences and capabilities of minority-owned businesses in your local area.

E. Napoletano

When you want your audience to listen, you have to give them a reason. Erika Napoletano has been found and written those reasons since 2007 -- colloquial, concise, and captivating are her daily writing mantras. Her work ranges from business and marketing topics to those in gender, health, consumer medicine, real estate, and personal finance. As a freelance writer with over seven years of experience, you can find her work on American Express OPEN Forum, Entrepreneur Magazine, Chicago Health Magazine, Trulia, PNC CFO, Yesware, Payment Week and more. As a formerly licensed financial professional (Series 7, 66, 31 and life/health producer), she's at home with compliance-sensitive topics and can make even the most tedious subjects sing. She's also the award-winning author of two books and lives in Glendale, CA.

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The Best Business Loans for Franchise Purchases and Improvements

Manage Your Money

by Bernadette Abel7 minutes / February 20, 2020

Are you exploring business loans for franchise purposes? You’re likely bringing some of your own money to the table to finance your dream. However, that doesn’t mean that you won’t need help with other startup costs, future expansion or ongoing funds. You might be surprised at how many options there are in the marketplace. This guide will help get you up to speed on the most popular franchise financing options according to two main objectives: buying a first/additional/multiple franchises and funding existing franchise operations.

Get ready to feel better about your financing options for the next chapter in your entrepreneurial careers. Your franchise ownership goals are within reach.

Buying Your First/Additional/Multiple Franchise Locations

Whether you’ve got your eye on owning your part of a franchise or ready to expand your franchise footprint, you’ll need one of the many flexible-use business loans for franchises.

The three most popular types of franchise financing are:

Traditional loans
Small Administration (SBA) loans
Franchisor financing

Look at how each of these financing options can fit the needs specific to someone purchasing an initial franchise.

Traditional loans

When considering the different business loans for franchises, traditional business loans top the list. Proceeds can help purchase or expand franchise holdings.

Traditional loans are smart financing options for small business owners confident that they have the financials and good credit to qualify. With generous loan limits, highly competitive interest rates, and flexible terms, these loans will likely offer some of the best rates in the market. You’ll need to come to the table equipped with solid financials. The rigorous underwriting process is one of the reasons these loans typically offer the most competitive terms. Traditional loans might be an attractive option. Show three years of tax returns, a strong personal financial history and a good credit score. The lender will verify fund source you’re using for your down payment.

With traditional loans, your franchise choice could play a significant role in the approvals process. Lenders like to see big brand names with proven track records in the market. Franchises with few locations might hurt your application. These franchises haven’t worked in multiple markets and various economies. Yet, if you’re a new franchise owner, a traditional loan can use your personal credit and financial history to launch your new venture.

SBA 7(a) loans

The SBA 7(a) loan program is hands-down the most popular loan program. It’s a reliable option for financing franchise startup and expansion costs. When you use these types of business loans for franchises, you’ll find competitive rates and virtually unlimited use of funds. Loan Limits are generous, and flexible terms are perfect for a franchise on the rise.

The first step to qualify for an SBA (7a) loan is to make sure your franchise is listed in the SBA Franchise Directory. If they don’t list your franchise type, you can apply for participation in the directory (note: the SBA will require additional documentation).

Loan limits are up to $5 million and terms range from 10 to 25 years. Interest rates are generally in the single digits (7% to 9.5% is a good range to consider). Prospective borrowers will usually have to be in business for at least two years. This makes the SBA 7(a) loan a better match for existing franchise owners, or those purchasing a franchise in an industry where they have a proven careers track record. Lenders will use your credit score and business financials for qualification. While the approvals process isn’t speedy, you’re rewarded with some of the best rates and terms, aside from traditional loans.

The only limit to an SBA 7(a) loan is borrowers can’t use the funds to finance franchise or royalty fees. If you choose to go the SBA 7(a) route, make sure you earmark other funds for these startup costs.

Franchisor financing

Many of the nation’s leading franchises offer direct financing to entrepreneurs. Of course, they want to make it simple for owners to get up and running. This one-stop-shop approach is potentially perfect for those looking to open their first location, adding a location, or purchasing multiple locations at once.

While the rates might not be as competitive as traditional loans or the SBA 7(a) loan, there’s something to be said for a streamlined process. As you consider all the options for business loans for franchises, it’s worth it to speak to the franchise and see what options are available. Be sure to have your attorney or accountant review any financing options offered by the franchise. Then you can compare the terms between a traditional loan, SBA 7(a) loan and the franchise’s direct financing side-by-side.

Funding Ongoing Franchise Operations

You may find times where you need a cash infusion to help fuel operations and growth. The best business loans for franchise needs in these cases is the one that matches:

The reason you need the funds
How long you need to repay the funds
How much you need to borrow

Here are three financing options franchises can use to keep operations running smoothly and make specific improvements.

Traditional business loans

If you know you need a fixed amount of cash for an upcoming franchise improvement or expansion expense, a traditional business loan can help. With fixed terms and rates, small business owners can fund franchise expenses with a predictable impact on their monthly budget.

Repayment terms are often flexible, including payment frequencies based on your current cash flow. Traditional loans have stringent qualification guidelines, and not all businesses can qualify with ease. You’ll need to have existing operations with a proven balance sheet, a plan, and your financials in order.

Lines of credit

If you’re looking for a more flexible way to access the cash your franchise needs, a line of credit might be the ideal tool.

Lines of credit can be used for nearly every purpose imaginable. You can draw as much or as little as needed–and only pay interest on the funds drawn. Once you pay it back, your credit line is once again fully available for use. There’s no need to go through the qualification process again.

For businesses that may not qualify for a traditional loan, lines of credit can fill that financing gap. Credit scores aren’t weighed as heavily in the approval process for most lines of credit, either. These features combined make lines of credit ideal to fund everything from cash flow gaps to seasonal inventory ramp-ups. The sky’s the limit.

SBA 504/CDC loans

While the SBA 7(a) loan is an ideal fit for initial or additional franchise purchases, you’ll need a different SBA loan type for funding ongoing business concerns.

The SBA 504/CDC loan has a narrow scope of use. Funds must be used for acquiring, renovating, or improving real estate or equipment. A borrower’s franchise location must also be U.S.-based. This type of loan can help fund making improvements to franchise real estate, buying real estate, or even upgrading heavy equipment to speed operations.

As with the SBA 7(a) loan, your franchise needs to be listed in the SBA Franchise Directory to be eligible. While these loans are slower to fund than traditional bank loans and lines of credit, you’ll likely be rewarded with some of the best interest rates. With all of the options for business loans for franchises, there’s one out there that makes perfect sense for your financials, credit and goals. And, if you’re still trying to determine the next steps in your franchise financing plans, you can always reach out to a loan officer to discuss.

Bernadette Abel

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How to Recover from a Small Business Loan Rejection

Manage Your Money

by Bernadette Abel4 minutes / February 19, 2020

How to Recover from a Small Business Loan Rejection

Rejection always hurts, and when it’s from the bank on a small business loan, it can sting a little bit more than it did in high school. Loans are the lifeblood of most small businesses, and without them, the company could crash and burn. In fact, according to the Small Business Administration, 27% of the small businesses surveyed stated they weren’t able to receive the funding they needed to expand their businesses.

However, there is hope. Many businesses have been rejected only to recover and secure the financing they need on the next application. Here are our tips to help you recover from a rejection.

Why Would A Small Business Loan Be Denied?

First thing’s first, you need to be able to pinpoint your misstep to correct it in the future. Most lenders will give you the reason that your application was denied and it is usually one of two issues:

Low FICO Score
Not enough revenue

Before lending to a small business, just like any loan, they want to ensure that you have a solid history of repaying your debts on time and in full. If your business and personal credit scores are less-than-stellar, lenders will perceive you as a risky investment.

Additionally, lenders want to know that borrowers can make the minimum monthly payments on the small business loan. This is where your business’ cash flow comes into effect – they’ll calculate your debt to income ratio to see how you would be able to handle the monthly payments.

Correct the Problem

There are both short-term and long-term solutions. You can’t fix your credit score in a week, but if you make it a priority, over time, you’ll be able to improve it. In the short-term, you can, first of all, ensure that your credit report is error-free. It happens more often than you would think as 23.17% of all complaints to the Consumer Financial Protection Bureau in 2016 were about credit report inaccuracies.

Also, to improve your credit rating, you can take steps to pay off your debts to improve your debt to income ratio which will make you look more favorable to lenders.

To improve your revenue streams and to show the lender that your business is bringing in enough money to cover expenses and the loan payments, you should do your best to reduce expenses while increasing your profit margins. Improving cash flow can be a challenge for some small businesses. However, many are finding success after putting all of their attention and efforts into the process.

Other Things to Consider

There are a few things you can do to improve your odds of securing a small business loan, and are intended to make you appear more trustworthy as a borrower.

You can make a sizeable down payment on the loan to show that you’re serious about repaying the loan. You can also get a cosigner with an excellent credit score to make you appear more trustworthy. However, the cosigner would be on the hook for the loan as well, so ensure that you can confidently make the payments.

If you have a low FICO Score, you should also look into alternative financiers that could provide you with financial options. Big banks aren’t the only lenders out there. Additionally, a low credit score won’t necessarily take you out of consideration with alternative lenders.

What to Do Before Re-Applying

Before potentially going through the frustration and wasted time of a loan rejection again, you need to take a look at yourself and your businesses from the lender’s point of view; are there any red flags?

We recommend taking a hard look at your credit report. Even asking a lender’s advice about any problems they see. It may seem scary to ask them to point out problems, but the issues might arise when you re-apply for the loan anyway. So, it’s better to know beforehand.

Bernadette Abel

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