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Presentation from the 2013 Mountain States Lumber & Building Material Dealer's Association: Growth in the LBM industry and how you plan on funding that growth. By John Kavanaugh, National Corporate Sales Manager at BlueTarp Financial
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• 20+ years in building supply industry• Focus on financial services
John KavanaughNational Accounts Rep
We are new members of MSLBMDA
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Signs
Funding
Navigating
GROWTH
Discussion Agenda Today
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Growth is here
+28%
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A steep growth rate is predicted
Projections through 2016 mirror rates last seen in the 1970’s
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Remodeling will steadily increase by 20%
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You will need $3 in Cash for every $1 in Growth
*ProSales Magazine Online; “Five Steps to Funding Tomorrow’s Growth”; Hallie Busta; September, 5, 2012 www.prosalesmagazine.com
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Reduced lending squeezes independent dealers
Lending
Housing
-25%
+28%
$Alternative Financing
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Options to Consider
Equity Investment Debt
Leasing Factoring
3rd Party Trade Credit
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Diagnose a Cash Flow Gap
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Let someone else manage your trade credit
• Guaranteed Cash Flow• Increased Sales• Reduced Risk
Customized to you
Golden Rule: Get the cash flow you need while staying in control of the way your customers are treated
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Comparison between plans
In-House Program
• 100% risk • Wait 48 days for payment• Self-source your credit checks• Staff your own back office
3rd Party Trade Credit
• No risk• Guaranteed payment every 30
days• Customizable by customer• Complete services front-back• Stay in control
Better Cash Flow = Healthier Business 2013+
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