Factors are Not Fair Weather Friends
Written by: Vincent Rees, CEO & Partner of Capital Business Funding
Helene stormed into the southeast on September 27, 2024 as a Category 4 hurricane and was the deadliest such storm since Katrina in 2005. The Carolinas were one of many regions to suffer material damage and loss of life. The death toll will continue to grow with hundreds already identified and many more missing. Property damage was extensive and the pictures in areas such as Western North Carolina appear like a war zone as towns were swept away by water as two dams burst contributing to the devastation.
Many were without power for days and some residents to this date are waiting. Internet is still down for many in the area, crippling business operations as “cash only” transactions became the norm.
Situations like the one impacting the Carolinas tends to bring out the best in some, and that is a reason to be grateful. The IFA Members have displayed their true colors.
Louis Greenblatt, CEO of Evergreen Working Capital, is one such member who went above and beyond. Without power, internet, and many clients impacted by the storm, getting funding to clients was challenging. First, Louis offered to wire $500K without any documents (no power in the region so no capacity to send anything signed) so we could operate. We were fortuitous that we had sufficient cash at the time, but the offer was meaningful and demonstrates the import of relationships that are solidified during IFA conferences. Further, Louis operating in Louisiana is no stranger to natural disasters and educated us on his procedures during a time of infrastructure disruption.
Bob Kincaid, an IFA member and a Senior Officer with Advantage Business Capital, called to offer his assistance and indicated his Church was sending mission trips to the Carolinas to help rebuild. The moral support and willingness to provide substantive assistance was well received.
Many other members contacted us to offer support, prayers, and the recurring message that we were not alone. This support is uplifting to all the team members at Capital Business Funding. It reinforces the value of the IFA as it is not just education and collaborating to install best practices. The friendships are critical to many of us small factors who do not have access to large teams of expertise or geographic and system redundancies.
We believe this is important for our industry to emphasize. We are not predatory lenders eviscerated by over eager regulators who do not understand the importance of factoring to our economy as larger institutions in traditional lending effectively abandon the space for larger transactions where “scale” is critical. We factors provide working capital critical to small businesses and do so with products that make sense. Further, our industry through the IFA, operates with a code of ethics that binds us to uphold a uniform standard.
The Carolinas are a strong people and we will build back. It will be a process and our team members are thankful as we did not suffer loss of life or injury (or immediate family members). We are blessed and grateful for this and many things but it would be remiss if we did not thank the IFA and its many members. The IFA friends are not Fair Weather (pun intended).
About Vincent Rees:
Vince graduated from the University of South Carolina with honors and was awarded membership into Phi Beta Kappa and Beta Gamma Sigma.
He worked at C&S Bank which later became NationsBank for 7 years and served in various roles in retail banking, as a Senior Credit Analyst in the Commercial Credit Department, and as Vice President in Commercial Banking.
Vince worked the next 20 years in Community Banking where he helped start two community banks and served as an Executive Officer, Board Member, and Bank President. Both institutions grew to an asset size close to $1 billion. Vince directly managed the commercial lending function and oversaw the retail mortgage lending unit as well as a lending unit that specialized in loans with credit enhancements from the SBA and USDA.
Vince has spent time working in the community with philanthropies such as the United Way where he served several years as a Board Member and Treasurer along with the Chamber of Commerce where he served for many years to include being the Treasurer and Chairman.
Vince is currently the CEO and a partner in Capital Business Funding, LLC where he has worked since 2015. Vince enjoys working with our Clients and is particularly fond of growing businesses who need additional capital/funding to support their growth. Vince was originally drawn to Capital Business Funding as it mirrors the philosophy of many community banks that focus on personal relationships and old-fashioned service where knowing the Clients as individuals was critical to delivering products that were customized to each person’s unique need.
The views expressed in the Commercial Factor website are those of the authors and do not necessarily represent the views of, and should not be attributed to, the International Factoring Association.