Jonathan Hershman

Here’s a quick, side‑by‑side on total cost of capital for two common $250K business loan options, and the tradeoffs that come with them: Option A - SBA 7(a), $250K, 9.75%, 10‑year, fully amortizing (monthly): ▶️ Monthly payment: ~$3,269 ▶️ Total interest paid: ~$142,311 ▶️ Total paid over 10 years: ~$392,311 ▶️ APR: ~9.75% Option B - Unsecured working capital, $250K, factor 1.30, 18 months, weekly: ▶️ Weekly payment: ~$4,167 (78 weeks) ▶️ Total cost/fee: $75,000 (you repay $325,000) ▶️ Implied APR: ~36% nominal (~43.5% effective) ▶️ Payment cadence: weekly My Takeaway: Even though the SBA loan has the significantly lower APR, you’ll pay ~$67K more in total dollars over its longer term ($142,311 vs. $75,000) simply because you’re carrying the debt for a decade. However, while the unsecured option costs less in total dollars, the APR is much, much higher and the weekly payments hit cash flow harder. That means that if you want to borrow short-term funds, you really have to know what type of return you'll get on whatever it is you're borrowing the capital for. And, most importantly, do not abuse it! Use cases: ✅ SBA 7(a): longer‑term expansion, hiring, capex, multi‑year initiatives. ✅ Unsecured (factor): near‑term needs like inventory, supplies, materials, short‑cycle revenue. There is both a RIGHT and a WRONG way to use BOTH of these products, make sure you know the difference before accepting either one...and let me know if you need help. #SBA #WorkingCapital #TotalCostOfCapital #CashFlow #SmallBusinessFinance ______________________________________ 📰 Sign up for my weekly newsletter via email with 25,000 other subscribers discussing all matters small business related, particularly finance...https://bit.ly/3A0Jdrn

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Most small PE groups are fighting over the same scraps. By the time a broker teaser lands in your inbox, you’re already 18-24 months behind the real signal. We call this the Signal Gap. The traditional playbook relies on reactive sourcing. You wait for the market to tell you a company is for sale. By then, the auction is crowded, multiples are inflated, and the off-market gem is anything but. At Ecliptica, We approach it differently. We don’t replace the existing ecosystem; We narrow the window. We use our proprietary AI.DA 3.0 platform to identify companies hitting operational ceilings long before they look for an exit. Our approach moves in phases: first, a 45-day fix to stabilize the infrastructure, then full execution support. We build the strategic architecture that identifies targets while they are still dark to the rest of the market. It’s not just about finding deals: it’s about finding the right ones before the noise starts. We don’t just consult on the strategy; We stay and run the work to ensure the growth story plays out. High-signal sourcing isn't about being faster to the teaser. It’s about being there before the teaser exists.

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Ollie's Bargain Outlet, Inc. Earnings: Record Store Growth. Surging Traffic. Guidance Raised. 📈 Revenue: +18.6% YoY to $614M, powered by record new stores + a 3.3% comp boost. 📊 Margins: SG&A leverage improves 50 bps; gross margin holds strong at 41.3% despite tariff pressure. 🚀 Strategy: Accelerated digital marketing, expanded seasonal assortments, and robust closeout deal flow drive momentum. 🗣️ CEO Eric van der Valk: “We delivered industry-leading sales growth while significantly improving the bottom line.” 🗣️ CFO Robert Helm: “We remain committed to a fortress-type balance sheet as a strategic advantage.” ⬇️ Full earnings breakdown: https://lnkd.in/gaayfixH #CPG #FoodAndBeverage #Earnings #Stocks #ConsumerStaples 

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Earlier today I posted a depressing chart showing Chicago with the worst GDP growth rate amongst its top-25 large metro area peers. Well, misery loves company... It doesn't get much better for Illinois. I made the time period on this chart Q1 2019 through Q1 2025 to coincide with Governor Pritzker's time in office. But it's bad over other both longer and shorter time periods as well. There are real fiscal and opportunity costs to such poor economic growth. The key concern of all elected officials in Illinois - whether in Springfield or Chicago - needs to be reinvigorating growth. It's A LOT easier to solve our fiscal challenges in a world where organic tax revenue is rising faster than operational costs and pension/debt liabilities. I wish our progressive friends in charge of things here understood that they perhaps stand to benefit the most from faster growth. If you want to fund your various social iniatives, you need... funding! Thinking you can simply tax your way to more revenue is foolish when we already have a high state and local tax burden and - more importantly - we compete with other states in an increasingly competitive market for talent, investment, jobs and residents. Do you think higher taxes make us more or less competitive? Are they more or less likely to change our growth trajectory? Some common sense would go a long way. *Note that state GDP data is updated more frequently than metro area GDP data (quarterly vs yearly). Relevant to the chart I posted earlier, we won't have the 2024 metro GDP data until December this year.

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Asset-Based Lending isn’t just for distressed companies. Many large operators use it strategically. Because ABL doesn’t start with the borrower. It starts with the assets. Here’s how the structure typically works in larger transactions: ↳ Step 1: Collateral evaluation Lenders analyze receivables, inventory, equipment, or other balance-sheet assets. ↳ Step 2: Advance rates are set More liquid assets receive higher borrowing capacity — often 50–85% of verified value. ↳ Step 3: A facility is structured Usually a revolving credit line or structured term facility. ↳ Step 4: Capital scales with operations As receivables or inventory grow, the borrowing base can expand. This is why ABL is common in manufacturing, logistics, distribution, and large working-capital environments. But there’s a controversial side to the structure. Some critics argue relying heavily on asset-backed borrowing can trap companies in cycles of pledging productive assets as collateral. If asset values decline or markets shift, that leverage can tighten quickly. Asset-Based Lending isn’t a fallback option. It’s a collateral-driven capital strategy. Used correctly, it creates flexible liquidity. Used poorly, it concentrates risk on the balance sheet. If you’re evaluating $10M+ asset-backed facilities, structure matters more than speed. Book a consultation call: https://altfundsglobal.com #AssetBasedLending #StructuredFinance #PrivateCredit #CorporateFinance #CapitalStrategy

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Regional bank stocks experienced their steepest decline since April after Zions Bancorp's fraud allegations became public. Shares of Zions and Western Alliance Bancorp dropped 13% and 11%, respectively, while an index of regional banks fell 6.3%. The broader KBW Nasdaq Bank Index lost 3.6%, reflecting heightened investor anxiety about credit quality and the stability of smaller banks.

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