Fall/Winter 2009-10
In this edition of the
Royal Report NorthEast Fence finds ways to grow in difficult times
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Royal Bank helps SureShade set sail for revenue growth
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Free Social Media Seminars for Small Businesses 11/20, 3/23
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fueling growth with a business By Gene Marks
line of credit
I admit it – I really don’t have a whole lot of discipline. I can’t eat just one potato chip. I can’t take just a “short” nap. And I can’t watch just a single episode of Cops on a Saturday night. It’s too addicting.
Gene Marks’ latest book is the bestselling Streetwise Small Business Book of Lists. Gene is a regular online columnist for Forbes. com, BusinessWeek.com and American City Business Journals. Gene also owns a small business outside of Philadelphia.
That’s why I don’t have a line of credit for my business. I’m afraid of what I’d do with the money if I had it in my hands. I don’t think I’d have the self-control to invest it in my business. I’d probably blow the money on a great vacation. Or some cool stuff for my house, like a Man-Cave. Fortunately, I’m not the norm. Banks loan money to businesses, big and small, all the time. And now that it’s pretty much agreed that the recession has bottomed out, a lot of my fellow business owners are turning to their bankers for some cash to fuel their expected growth. I know a few of these guys. I’m going to change their names for the purpose of this article. But they’re out there. For example, there’s Steven Snyder who runs a company that makes piping and tube fittings for the military and energy industries. And there’s Jerry Castel, who owns a 25-person architectural firm. What do these guys have in common? They’re both seeing deals out there and they’re looking to buy. For Steven, the prices of key commodities, like the iron and nickel he needs to make piping, have dropped more than 50%. For Jerry, the prices of computers and specialty copy machines he needs for his firm have also fell considerably as the economy has slowed. These guys are both predicting growth over the next year, and they see opportunities. Jerry wants to grab as many pounds of raw materials as he can; Steven wants to snap up as many computers and copy machines as he can. They both dipped into their lines of credit not for major acquisitions, but for smart business buys that will help them fuel their growth. Because for those that have the credit, now is a great time to get those end-of-recession deals that could make a huge profit contribution going forward. Sandra Nelson doesn’t care about buying inventory--she wants to buy some people. Don’t get the wrong idea, she’s not a dictator, at least not to most of her employees. Sandra runs an engineering firm whose workload has slowed through this latest economic downturn. But she, like Steven and Jerry, is looking forward. She’s seeing the money that’s being pumped by the government into construction and “green” energy. She sees a lot of Continued Inside projects coming to life, and she’s going to need people to work
Robert R. Tabas Chairman & CEO
from the
chairman’s desk A few months back, we launched our Spur The Economy initiative, an effort geared towards providing small businesses in our region the financing they need to grow during these challenging economic times... That’s right–grow! As we see it, the marketplace is primed for many businesses to not only survive, but thrive by seizing opportunities, expanding product offerings and making strategic acquisitions. Having the necessary capital to act on these opportunities (and act quickly) is where Royal fits in. You will read several stories in this issue about companies who view the current economic environment with optimism and excitement. Is your business ready to grow? Then I encourage you to speak with a Royal Bank America lender or branch manager today about how we can best help you Spur The Economy.
Royal Bank America Newsletter
5 Things You
Can Do Today To Reduce Your
Banking
Carbon
Footprint 1. Choose eStatements. (Bonus: Receive your statements up to 7 days faster!) 2. Pay your bills for free using secure Internet BillPay. 3. Use your Royal ATM/Debit card in place of paper checks. 4. Choose “No” to ATM receipts. (View your balance on screen and/or check your balance later online.) 5. Turn off your computer or place it in “sleep” mode when not in use. For more tips about green and sustainable banking and business practices, visit a Royal branch today!
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fueling growth with a LOC Continued from front these projects. The great news for her is that the labor market, pushing 10% unemployment, is now full of talented engineers and technical types that were laid off by big companies. Problem is, how can she bring them on? Like Steven and Jerry, Sandra’s going to let her bank help her with this problem. With growth predicted, and some great workers available, Sandra’s also drawing on her business line of credit to finance their hiring. To her, it’s a bet she can’t lose. She’s already got con-
tracts for work which in many cases are financed through government money. She can predict her cash flow. All she desires is some extra help to buy the “inventory” her business needs: people. I wish I had the discipline that these guys have. I wouldn’t mind taking some of those calculated risks with my own line of credit. I know of a few potential projects that, with a little financing, could turn a good profit. A competitor of mine, hurting from the recession, recently offered me his customer contracts so he could retire into the sunset. My line of credit
could help me do it. And maybe I will... right after I catch this next episode of Cops, OK?
Gene Marks
royal opens the gate for
fence company to grow
Is your business in growth mode and looking for working capital?
Royal has been in the unique position to increase small business financing at a time when others are pulling back. This is exactly what happened to one growing business in our region. Northeast Fence & Ironworks has been a leader in commercial and residential fencing for 30 years. When their existing bank readjusted their lending practices and shrunk NE Fence’s line, President Ray Longstreath knew he needed to find another option. “During these difficult times, businesses like ours use the flexibility offered by a line of credit to seize opportunities in the marketplace,” Longstreath said. “When our bank came to us and said they were cutting our line size I knew we needed to find a new lender who could truly partner in the growth and success of our business–that is when we turned to Royal.”
Let Royal help you get to the next level. Call 610.668.4700 today.
Having the ability to react to market conditions quickly is critical for businesses looking to thrive during these challenging times. Royal’s Small Business Lending initiative has proven to be the perfect vehicle to help stimulate the local economy. Joe Kitlas, a Senior Vice President at Royal, added, “As for Ray and his business, timing was very important and we were able to deliver a solution quickly and at a competitive rate.”
royal offers boating innovators Branch shelter from the economic storm Locations For many start-up businesses in today’s economy, establishing credit to support company growth can be difficult. And SureShade ® CEO Ron Russikoff knew it. SureShade, inventors of an automated, retractable canvas sunshade for boats, was at a point where it received favorable feedback from the U.S. Patent and Trademark Office on its innovative marine shade system, and so it was time to begin the international patent process. It was also time for Russikoff to find a lending solution.
hassle for boaters, and our ability to provide the visionary boat builders who can see beyond current economic conditions with a product that will help differentiate and strengthen their position when the market recovers.”
Ron Russikoff pictured with a SureShade® equipped Boston Whaler
So why did he choose Royal Bank America? “Quite frankly, it was the billboards. I remember the Royal billboards from years back, like ‘The Loan Rangers,’ and then when I saw the SpurTheEconomy.com billboard saying ‘We Have Millions to Lend to Small Businesses,’ I thought, ‘No other bank is bold enough to say that—this bank gets small business.’” “Royal really listened to our story,” Russikoff said. “They took into consideration the professional backgrounds of the company’s principals prior to launching into this venture, the potential our solution has to solve what has been a longtime
Discussing Royal’s commitment to small business lending, Vice President Jo Grech noted that SureShade “has a well thought-out business model with a clear roadmap for growth. We were excited to work with them and hope to be a catalyst for their success in the boating industry.”
“
This bank gets small business.
”
– Ron Russikoff, CEO
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Fall/Winter 2009-10
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