Blog   Tagged ‘business banking’

Happy Anniversary, Marquette Transportation Finance: Q&A with Rich Voreis, CEO of Marquette Transportation Finance

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We recently sat down with CEO of Marquette Transportation Finance Rich Voreis to talk about the company’s 15-year anniversary. Check out the below Q&A to learn more about the company and its evolution.

Tell us about Marquette Transportation Finance and how did the company started? 

We are industry leaders in providing working capital financing to companies as an alternative to traditional bank financing. We help businesses do several things such as:

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  • Drive growth by improving working capital
  • Fund acquisitions and recapitalizations
  • Improve liquidity
  • Fund restructures
  • Serve as a bridge lender until a company is able to receive traditional bank financing

We opened the doors to Marquette Transportation Finance (MTF) in September 2002. The story to how we got there is very interesting. Initially, I worked for Marquette Financial Companies, at the holding company level. After several years, I left to join a transportation finance company. When the company was sold, Marquette asked me to come back and start a transportation finance company for them.

In 2002, we had five people working for us and closed our first deal in October of that year. At the end of 2003, we started our 10-year growth trajectory. As of June 30 this year, we reported $160.7 million in factoring balances with an average balance for the quarter at $155.5 million. Factoring is a volume business and the receivables are often more important than outstanding balances. In our fifteen year history we have purchased approximately $15 billion in receivables.

Along the way, we added Marquette Commercial Finance to the family, and we merged the two together in 2012 to become one large subsidiary of Marquette Financial Companies’ Meridian Bank. In 2015, Marquette was acquired by UMB Financial Corporation, which is where we are today as we get ready to celebrate our fifteenth anniversary.

 

 

How has the industry changed?

Our industry has experienced a great deal of change over the past 15 years. First and foremost, the biggest change has been technology. Since we deal with large trucking companies that are delivering products, daily we received reams of paper to support our purchase of our client’s receivables. Each day we would receive an overnight package from every one of our clients containing this paperwork. Today, we do everything electronically, which allows us to be more efficient and standardized in our processes.

We have also seen a lot of change with our competitors and pricing. Initially, the competition was relatively small, but now more banks are adding a factoring division to their offerings. We also have to stay competitive with our pricing and rates, which is directly impacted by what’s happening economically. As we continue to rebound from the recession, we are experiencing more competition in this area.

However, we do feel our service and experience continues to be a differentiator for us. As both our company and the industry continue to grow and evolve, I’m excited about the opportunities we have in offering our clients the best service possible with the best products in the market.

What does the future hold for MTF?

I believe we have a lot to look forward to in the coming years. We are thrilled to be a part of UMB, because now we are able to offer even larger financing to our clients. With UMB’s support, we have been able to expand our offerings and use all the resources that come with UMB’s breadth and expertise.

It is truly an exciting time to be a part of Marquette Transportation Finance. I can’t wait to see what the next 15 years holds for us.

Marquette, a subsidiary of UMB Bank, n.a. located in Bloomington, Minn., is a leading provider of accounts receivable financing solutions, serving companies with annual revenue from $2 million to $400 million. Marquette assists companies in meeting their working capital needs to drive growth, fund acquisitions, improve liquidity and fund restructures. Marquette is small and nimble, which allows it to control how it manages and offers its services, yet it’s also backed by the strength of its parent company, UMB Financial Corporation, which allows the company to extend larger financing packages.


UMB Financial Corporation (Nasdaq: UMBF) is a diversified financial holding company headquartered in Kansas City, Mo., offering complete banking services, payment solutions, asset servicing and institutional investment management to customers. UMB operates banking and wealth management centers throughout Missouri, Illinois, Colorado, Kansas, Oklahoma, Nebraska, Arizona and Texas, as well as two national specialty-lending businesses. Subsidiaries of the holding company include companies that offer services to mutual funds and alternative-investment entities and registered investment advisors that offer equity and fixed income strategies to institutions and individual investors.



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Focus Items for Small Business Owners

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In December, the NFIB Small Business Optimism Index‡ had its highest reading in 12 years. In the report seven of the 10 index components rose, including small business owners expecting better business conditions and higher sales.

Optimism is currently at a high point allowing for owners to focus on their next big idea, their bottom line and how they can make things better for their employees. Their bankers should be thinking about those things, too.

If you’re a small business owner, make sure you’re talking with your financial partner about these business-critical items as you venture into 2017 and beyond.

Top Talent Identification and Retention
Companies requiring vocational talent can face challenges finding the right type of employee. As businesses look to expand, growth can be difficult without a sound workforce and could potentially force companies to outsource to other cities or move operations entirely.

As part of their talent acquisition and retention efforts, small businesses should ensure they are offering solid compensation and benefits to build and retain a strong workforce.

Business Growth
With an ultimate goal of growing their company, small businesses need to evaluate what other potential clients exist and if there are new segments where they can introduce their product or service.

Companies that did not survive the 2008 economic downturn left behind certain voids that need to be filled. Existing companies should evaluate this as an opportunity to expand to a new business target.

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Employee compensation and benefits
Currently, there are two big issues that could pose a threat to small businesses: the minimum wage discussion and health care. If minimum wage increases, many businesses will face challenges with revenue and cash flow, particularly if they employ lower-wage workers. With no offsetting revenue increase, this would affect a company’s cash flow and could create unprecedented challenges within the business.

The other topic of note for business owners is healthcare. The rules and regulations of the Affordable Care Act may change with the current administration discussing extensive healthcare reform. This could mean an extra expense without incurring any additional revenue for small businesses.

Fraud and Protection
Fraud continues to be a top concern among business owners, and the latest statistics prove it is a legitimate fear. In the 2016 Association for Financial Professionals Payments Fraud and Control survey, 62 percent of companies were subject to fraud during the survey period, and wire fraud has nearly doubled from 14 percent to 27 percent.

The truth is, businesses can plug one gap and another one opens up somewhere else. The key is to stay vigilant with your employees, train them and understand the latest tactics that are being used to commit fraud.

 

When you click links marked with the “‡” symbol, you will leave UMB’s website and go to websites that are not controlled by or affiliated with UMB. We have provided these links for your convenience. However, we do not endorse or guarantee any products or services you may view on other sites. Other websites may not follow the same privacy policies and security procedures that UMB does, so please review their policies and procedures carefully.


Dominic is a executive vice president for the Business Banking division at UMB. He joined UMB in 2013 and has more than 20 years of experience in the financial services industry.



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How to finance your dental practice: the most important questions to ask

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As a dental professional, you’ve probably spent at least eight years in school preparing for your career (12 to 14 if you are a dental surgeon). After that, your focus will be on growing your new practice by building your patient panels and providing quality dental care to the community you serve.

dental practice financing

But what’s next? There are questions you need to ask yourself as soon as you open a practice:

  • Does your practice need remodeling or construction?
  • Do you see yourself bringing on a new partner at some point?
  • And most importantly, are you adequately planning for your retirement?
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As we work with dental practitioners, we’ve noticed a trend within this profession. A lack of strategic borrowing to pay for their practice’s expenses is a leading cause that prevents dental practitioners from retiring when and how they want. Only around 8 percent of dentists are able to retire and maintain the lifestyle they had during their working days.

Dental practitioners face many challenges in today’s market. Those challenges are further motivation to properly manage your funds. An important aspect of your finances is considering the best borrowing practices for your office. Some questions to consider when thinking about a loan for your dental practice:

What are your goals for your practice?
Determine where you see your practice over time. Figure out how quickly you want to grow your practice or if you have aspirations to open multiple locations. Identify a plan and partner with industry professionals who will help you achieve your ultimate objectives. Then discuss with your banking partner what financing structure will help – not hinder – this plan.

Are you borrowing with the best interest of your practice in mind?
Ask your banking partner to explain all loan options so you can align the loan structure to the best interest of the practice.  For example, some loans have a balloon payment at the end, which could require you to pay additional interest. The money you might have to pay in additional interest could be used instead to help expand the practice or could be committed to your retirement.

What are your ramp-up and wind-down strategies?
In addition to determining the long-term growth of your practice (ramp-up), you will also need to eventually consider succession and retirement strategies (wind-down). Have you considered hiring an associate to purchase your practice as a component of your exit strategy? Have you engaged a CPA firm to complete an evaluation of your practice? These are potential issues to consider as part of a succession plan.

Every practice is unique and you might even find that long-term goals change over time. Start planning early and understand what financing options are paramount for your practice. Find a banking partner who will help you determine the best loan options for your practice and your eventual retirement and succession plans.

For more financial advice, take a look at my video on Business Banking for Dentists.

 

When you click links marked with the “‡” symbol, you will leave UMB’s website and go to websites that are not controlled by or affiliated with UMB. We have provided these links for your convenience. However, we do not endorse or guarantee any products or services you may view on other sites. Other websites may not follow the same privacy policies and security procedures that UMB does, so please review their policies and procedures carefully.

 


Dave Bauer is a Vice President / Region Manager for UMB Business Banking. He is responsible for leading the Business Banking teams in the St. Louis and Oklahoma City regions. He joined UMB in 2011 and has eight years of experience in the financial services industry.



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Business Banking for Dentists

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Should new dentists purchase their first home or buy their practice? Watch to find out our recommendation and some pitfalls to avoid when financing a dental practice.

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Dave Bauer is a Vice President / Region Manager for UMB Business Banking. He is responsible for leading the Business Banking teams in the St. Louis and Oklahoma City regions. He joined UMB in 2011 and has eight years of experience in the financial services industry.



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