• 50 percent of U.S.-based importers have moved some of their manufacturing outside of China
• 34.2 percent are considering moving some manufacturing outside of China in 2012
• Countries where manufacturing is moving to include: Vietnam (33.3 percent); the U.S. (27.8 percent), Pakistan (22.2 percent) and Bangladesh (16.7 percent)

 Click here to read the full results from CBC’s survey and click here to read Women’s Wear Daily’s take on the results. If you have any questions please reach out to me directly or to a CBC account manager.

 Thank you,

 atananbaum@capitalbusinesscredit.com

With the release of February retail numbers that were the strongest they’ve been in months, it appears the retail industry can look forward to some much needed growth.

For the first time since Capital Business Credit launched its quarterly client survey in early 2011, manufacturers and importers of retail merchandise indicated a level of optimism for the 2012 Spring and Summer retail seasons.

Some key highlights from the survey include:

• 43.2 % of respondents say that the 2012 spring season will be stronger than 2011
• 40 % believe that the 2012 summer season will surpass last year’s sales
• 40 % of respondents indicated that retailers ordered more merchandise for the spring season compared to last year
• An overwhelming 78.3 % cited that they are receiving re-orders for spring merchandise

Click here to read the full results from CBC’s Global Retail Manufacturers and Importers Survey.

Retail numbers for the month of January were released yesterday. Here is an excerpt from an article I wrote for Apparel Magazine discussing the numbers.

While retail sales rose less than expected in January, up only 0.4 percent (including auto sales), I have moved from “cautiously optimistic” to “conditionally optimistic” with respect to retail sales in 2012. As long as consumer confidence continues to rise and unemployment continues to decline, 2012 will see healthier gains than the prior two years.

It’s important to remember when looking at January sales numbers that this is the month where retailers typically clean up and clean out leftover holiday inventory and begin preparations for Spring. January numbers may not be indicative of the growth the industry will experience during 2012, as retailers are still dealing with the excess baggage from the less than stellar holiday season.

Read more at: http://apparel.edgl.com/news/Is-It-Time-for-Retailers-to-Throw-Caution-to-the-Wind-78645.aspx?googleid=78645

]]> http://capitalbusinesscredit.com/blog/is-it-time-for-retailers-to-throw-caution-to-the-wind/feed/ 0 http://capitalbusinesscredit.com/blog/gloria-lance-credit-line/?utm_source=rss&utm_medium=rss&utm_campaign=gloria-lance-credit-line http://capitalbusinesscredit.com/blog/gloria-lance-credit-line/#comments Wed, 08 Feb 2012 15:13:22 +0000 Capital Business Credit http://capitalbusinesscredit.com/?p=1892 Gloria Lance, Inc. is a California-based women’s clothing manufacturer, whose clothing is sold in retail outlets throughout the United States. In business for almost 30 years, Gloria Lance has operated in both good and bad markets.  For many years, the … Continue reading →]]>

Gloria Lance, Inc. is a California-based women’s clothing manufacturer, whose clothing is sold in retail outlets throughout the United States.

In business for almost 30 years, Gloria Lance has operated in both good and bad markets.  For many years, the company relied on a large factor to provide them working capital, but when the company hit a few bumps in the road due to the lagging economy, their long term partner decided that Gloria Lance was no longer worth the risk.

“When our long-time factor severed ties with the Company, we knew it was time to find a company who would truly take the time to understand our business, get to know our management team and look at Gloria Lance as more than just numbers on a spreadsheet,” said, Michael Kazden, Chief Financial Officer of Gloria Lance.

In April 2011, Gloria Lance sought assistance from Capital Business Credit (CBC). Very quickly, CBC recognized the company’s potential and provided them a $4 million revolving credit line. With the CBC credit facility, not only is the Company operating at a profit, but its growth trajectory shows signs that it may nearly double annual revenues over the next few years.

Recently, I attended the Commercial Finance Association’s (CFA) Asset Based Capital Conference and Turnaround Management Association’s (TMA) Distressed Investing Conference in Las Vegas.

Overall the collective mood continued to be cautious at the events. Here is my take on both events:

CFA Asset Based Capital Conference

2011 was a good year for asset-based lenders who work with large cap companies, as many sought to refinance using ABL facilities. Many think that ABL volume would not be as strong in the New Year, as most of the companies who were going to refinance did so in 2011. However, I believe asset-based loans will see some action in 2012 from private equity firms who are going to get off the sidelines and start to make acquisitions. It’s my opinion that ABL will play a significant role in these types of deals.

There wasn’t a large amount of action in the mid-to-small cap space with respect to ABL in 2011. This wasn’t necessarily because the need didn’t exist, rather, there were not enough lenders to take on these types of deals. Federal regulators are still pressuring big banks to remove this type of debt from their balance sheets. In turn, banks are reticent to lend to small businesses. I don’t see this changing anytime soon which presents huge opportunities for non-bank lenders like CBC.

TMA Distressed Investing Conference

It appeared to me that there was a lot of ‘wishful thinking’ taking place at TMA conference. Many expect an uptick in business as large banks start to deleverage, severing ties with small, struggling companies that have relied on them. Many are under the impression that these small companies will want to sell themselves in 2012, however, I believe that these companies will try to hold on for another year or two and try to increase their valuations so when they do sell, they aren’t taking such a large hit. These businesses are gong to try to invest and grow until their business and the markets are in a more healthy position. While this might not be a great thing for distressed equity investors, there are opportunities for asset-based lenders.

Capital Business Credit Survey of Importers of Retail Goods Reveals While Outlook Remains Strong Through the Spring of 2012, Discounting is a Key Driver

NEW YORK – December 14, 2011 – With record Black Friday sales up 6.6 percent (according to ShopperTrak) and average spending per person at nearly $400 (according to Thomson Reuters), retailers, investors and economists alike have reforecast their projections for the 2011 holiday season to be stronger than last year.

A recent survey of U.S.-based importers, who sell goods at all major U.S. retail outlets, reflects the same optimism and confirms that retailers are re-ordering more merchandise to keep the shelves stocked for the remainder of the season.

According to the Holiday Global Retail Manufacturers and Importers Survey, 73 percent of respondents are experiencing or expect to experience re-orders from retailers this holiday season, an indicator of continued strength this sales season as retailers seek to restock empty shelves. Furthermore, 43 percent anticipate this holiday season will be stronger in comparison to last year and 43 percent believe it will be the same as last year.

Respondents’ positive forecast was coupled with a consensus that in order to keep the upbeat sales season alive, discounting is essential.  Sixty percent of respondents expect retailers to rely on discounting throughout the entire holiday season. Of those respondents, nearly 50 percent believe this will have a negative impact on their margins and 80 percent stated that discounting will impact their retail customers’ margins.

While importers are concerned about margins, they remain confident that sales this year will finish strong and will carry into spring 2012. In fact, 55 percent of respondents believe that Black Friday’s performance is a precursor to a stronger than anticipated spring retail season.

“The fact that importers are receiving re-orders from their retail customers is a very positive sign, one that Capital Business Credit (CBC) has not seen in quite some time,” said Andrew Tananbaum, executive chairman of Capital Business Credit, who conducted the survey. “However, we remain cautiously optimistic.  Given continued economic instability, consumers are shopping for bargains more now than ever before, and retailers are forced to respond with deep discounts. This means greater inventory is moving at smaller margins.”

Tananbaum continued, “Additionally, we are also concerned about importers’ and their Chinese manufacturers’ access to credit, as banks on both sides of the Atlantic are not helping small and mid-sized businesses fast enough.  If manufacturers can’t get access to the capital they need, they can’t make the goods to sell at retail.  Capital Business Credit is committed to working with businesses along all points of the retail supply chain to ensure they have access to the capital and credit they need to keep retail goods flowing into the U.S.”

The Holiday Global Retail Manufacturers and Importers Survey was conducted by Capital Business Credit LLC (CBC), a leading non-bank supply-chain financier with offices in the U.S. and China.  The survey was conducted the week of December 5, 2011.

About Capital Business Credit

Established in 1988, Capital Business Credit, LLC (www.CapitalBusinessCredit.com) is a commercial finance company specializing in providing creative supply chain financing solutions. The Company’s service offerings include: full-service factoring; immediate cash for receivables; single debtor credit coverage; letters of credit; accounts receivable management services; inventory lending; and international financing. CBC Trade Finance, a division of CBC, provides trade finance solutions for U.S.-based importers working with Asia-based suppliers (exporters). Capital Business Credit is based in New York, with office in Hong Kong; Shanghai; Los Angeles; Charlotte; NC; and Ft. Lauderdale, Fla.

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Contact:

Danielle DeVoren

KCSA Strategic Communications

212-896-1272 / ddevoren@kcsa.com

Over the last several weeks, economic reports coming from China have caused many to question how the stringent lending environment, disappointing manufacturing data and Hong Kong stock market performance will impact U.S. businesses who manufacture goods in the country.

This Monday, CBC’s executive chairman, Andrew Tananbaum, discussed the Chinese lending environment on CNBC’s Street Signs.

To address the Chinese lending environment, CBC has developed a Supplier Early Payment Program to provide manufactures payment upon the shipment of goods and buyers up to 120 days to pay.

Attended the commercial finance associations annual meeting in NYC this month.  Highest attended event in a number of years.  There was a good balance of asset based lenders, factors, distressed equity investors, investment bankers and service providers in attendance.

Overall there was a strong positive vibe from the attendees as many seemed to be active with deals.  Seems the lending markets for deals above $20 million is opening with rate spreads falling.  Good news for borrowers.  Below that level there are few lenders, capital business credit being one    Also seemed like many institutions are considering adding staff after a number of non hiring years.

There were a number of presentations with topics covering private equity transactions, current legal issues, etc. I participated in a discussion on current and future state of factoring. Given Capital Business Credit’s focus on supply chain financing using a cadre of products including trade finance, asset based, and factoring we were well received.  Our solutions based approach coupled with a non regulated entrepreneurial run company really resonated with the crowd.

Small and medium sized businesses in China are having great difficulty accessing credit and capital. This is directly affecting the retail supply chain as Chinese manufacturers are requesting payments earlier, while their U.S. buyers need

more time to pay.

Tuesday, CBC’s executive chairman, Andrew Tananbaum, discussed this on Fox Business.

To address the Chinese lending environment, CBC has developed a Supplier Early Payment Program to provide manufactures payment upon the shipment of goods and buyers up to 120 days to pay.