Friday, January 25, 2013
by Memphis Business Journal
Senior vice president
First State Bank
Given the current interest rate environment, the cost of borrowing remains extremely attractive. That, coupled with some pent-up demand, has motivated many of my business clients and prospects to request loans for building expansion, equipment purchases and working capital needs.
With the economy struggling as long as it has, many of my clients who have weathered the storm have become lean and mean, strengthening their liquidity and capital in anticipation of a turnaround. They saw some improvement in their core businesses in 2012 and are cautiously optimistic about this continuing into 2013.First State Bank’s expansion into Memphis along with its continued investment in the latest high-tech products and services has put me in a great position to meet these growing demands from my clients so that we can grow together.
We borrowed fairly heavily in 2012 to finance the acquisitions that we did and as far as borrowing more money for this year, we’re still in acquisition mode. I have a couple of companies I’m talking to, but I don’t know I’ll need additional financing to do those deals or whether they’ll happen. 2012 was a very unusual year, driven by changes in capital gains tax laws. We won’t see another year like that and in some ways, I’m grateful for that. For 2013, we remain willing and interested in continuing to acquire complimentary businesses that fit into our model. But I can’t say with certainty there will be any acquisitions this year or that we’ll go back to a bank.
I plan to obtain a bank loan in the amount of $5.75 million in the next 90 days to acquire 50 brand-new, Class 8 tractors to better service Intermodal Cartage Co.’sinternational shipping clients. This tractor acquisition will allow the company to meet the expanding needs of our clients and also allow our company to operate equipment in a greener carbon footprint.
Congress extending bonus depreciation for equipment purchases into 2013 has contributed to the strategy of buying new equipment, but additionally, the continued expansion in global shipping has caused our company this need to expand our service capabilities.
IMCG is an IMC Company servicing international shipping needs.
Founder and owner
Advanced Dermatology & Skin Cancer Associates
I am working with a bank to finance my new clinic in DeSoto County this year. Advanced Dermatology & Skin Cancer Associates will be opening in Olive Branch in March, expanding our existing Germantown clinic.
Financing was the best option for us because it has allowed me a secure stream of funding, ensuring that our progress is ongoing and our planning is not obstructed along the way. It also allows me to focus on building our practice in North Mississippi and providing continued quality care to our patients, rather than constantly thinking about the finances behind the project.