PRESIDENT’S MESSAGE
by Frank A Coviello
President, Boston Financial Corporation
The economy is rebounding. Boy, does it feel good
to hear the phone ringing again and getting lots of
inquiries from companies interested in our services.
The last two years have certainly been a challenge.
Unlike other economic downturns of the past, this
last cycle was influenced by so many factors outside
of the usual business and economics realm. Politics,
homeland security, war, travel, terrorism, the
failure of several large companies, the breach of
confidence in the investments market and job
security were foremost on most people’s minds and
many business decisions were influenced by them.
Uncertainty led to lack of confidence and the
unwillingness to make long-term commitments.
Due to recent changes, business
owners are now operating with renewed confidence and
planning. The doom and gloom atmosphere that
surrounded us for so long seems to have disappeared.
The up-tick in the stock markets and the positive
economic outlook have resulted in our clients and
prospects becoming more aggressive in marketing,
selling and the building-up of inventory.
Many businesses that survived the
recent economic downturn used up their cash reserves
and must now utilize capital resources such as
Boston Financial Corporation’s factoring and
purchase order financing programs. What was once
looked at in a very negative vein has proven to be
today’s preferred form of financing whereby a
company’s access to capital is tied directly into
its rate of growth/sales with fewer limitations.
Business operators like to talk to us about business
in business terms and how we are able to assist them
by utilizing our type of financing rather than
pursuing the uncertain and long-drawn-out process of
establishing traditional bank, secured financing.
Companies have come to recognize the value-added
aspect of our services. Economists are suggesting
that 2004 is going to be a great year for
businesses. And, Boston Financial Corporation is
ready for it.
Boston Financial Corporation has
earned a good reputation in the New England
marketplace, something that we worked very hard to
establish. We are becoming known, more and more, as
a "boutique" funding source that services
a discriminating clientele. We subscribe to the
theory of "quality" over
"quantity". In spite of the difficulty in
bringing in new clients during the last downturn,
BFC never compromised that theory and never competed
for clients by reducing our pricing and/or
increasing our risks. With the recent increase in
market activity, we expect to be able to continue to
be selective in our choices of clients and to add
several more "discriminating" clients to
our roster.
I hope that you, too, will find
2004 to be a year of rebound and opportunity.
Sincerely,
Frank A. Coviello
President
CLIENT SPOTLIGHT
Precise Time and Frequency, Inc.
of Peabody Massachusetts, is a new venture
specializing in the design and manufacture of highly
specialized electronic instruments. PTF manufactures
time and frequency-based components for a variety of
different industries including TV and radio
broadcasting, research laboratories, satellite and
telecommunications, as well as the U.S. Government
and U.S. military. The company has clients across
the United States and around the world.
The company was founded by two
former senior executives of another local company
that had been acquired by a West Coast competitor.
PTF’s two founders were quickly joined by an
experienced team of their previous co-workers,
providing the new firm with a knowledge-base in a
specialized market that would normally take many
years to establish.
As a result, the company has
experienced rapid growth. In order to take advantage
of additional opportunities and continue this
momentum, the company sought assistance in managing
their cash flow demands. "We were becoming
overextended due to rapid growth, and could
anticipate problems finding the resources necessary
to fulfill our growth potential," remarks CFO
and Co-founder Dan Whelan. As a result, PTF began
factoring their invoices with Boston Financial
Corporation in October of 2003 to increase their
immediate working capital. "Factoring provided
us with the up-front cash for raw materials and
components needed to complete the additional
business. Without factoring our cash flow may not
have been adequate to complete them."
PTF has been factoring its
invoices for only a few months, but has been
extremely pleased with the BFC’s services.
"We have nothing but good things to say about
Boston Financial Corporation. They have been
extremely responsive to all of our needs and have
been great to work with," remarks Dan Whelan,
Chief Financial Officer with PTF. "PTF is one
of our ideal clients," adds Frank Coviello,
President of Boston Financial Corporation.
"They have great management and are
experiencing steady and controlled growth.
For more information about
Precise Time and Frequency, Inc., call 866-PTF-INC1
or visit their corporate website at www.ptfinc.com.
PARTNERSHIP CORNER
BostonFinancial Solutions, LLC. Opens Its
Doors.
Boston Financial Corporation, recognizing the
unfulfilled need for commercial debt management in
the New England marketplace, has formed Boston
Financial Solutions, LLC. The newly formed venture
is dedicated to helping companies negotiate
favorable solutions to their commercial debt in
order to return to profitability. BFS will work side
by side with Boston Financial Corporation. Many
companies looking for financing get turned away
because of the amount of debt on their balance
sheet," remarks Frank Saia, Managing Director
of Boston Financial Solutions. "With the help
of BFS, these companies are now in a position to
reduce their debt and ultimately re-establish
profitability and growth."
Frank Saia, who will oversee the
operations of BFS, has over 25 years of experience
in commercial debt management and credit and
collections administration. BFS will also be
offering a series of training seminars in financial
management. Seminars will include,
"Understanding Financial Statements",
"Credit and Financial Management,"
"Collections 101," and "Legal Aspects
of Collections." BFS’ financial management
seminars are set to begin in March of 2004.
For more information regarding Boston Financial
Solutions, LLC. contact Frank Saia at 617-286-1122.
FROM THE SALES DESK
BFC Clients Prepare for Future Needs
Unstable or unpredictable cash
flow is a sign of the times in today’s volatile
economy. As a result, some BFC clients have chosen
to protect themselves by setting up a factoring
account with BFC before there is an immediate
cash need. They simply are preparing and
safeguarding against the lack of working capital
now, instead of waiting until it is too late.
No BFC client is under any minimum amount or term
commitment and may choose which invoices they wish
to factor. "Due to the flexibility of our
program, our clients can rest assured that they will
be able to access immediate cash whenever the need
arises," remarks Marc Kenney, Senior Business
Development Officer with BFC. Some clients who have
set up accounts still have not factored a single
invoice, while others have factored several. Other
than a marginal application fee, it costs a company
little to set up an account with BFC.
"Companies spend significant amounts of money
safeguarding against unforeseen problems in areas
like information technology, security, and worker
safety, while one of the first things they should be
safeguarding against is the lack of working
capital" remarks Mr. Kenney. BFC clients that
have already set up factoring accounts, have peace
of mind that they will ultimately never be short of
cash.
AROUND THE OFFICE
BFC Holds Post Holiday Gathering
Instead of holding a
pre-Christmas gathering during the busy holiday
season, BFC held a post holiday gathering on
Thursday, January 8th. "We felt that having our
company party in early January was a great way to
start off the new year and would ensure that
everyone could attend,’ remarks BFC President
Frank Coviello. "People have so many other
social commitments throughout December and we wanted
to make sure the entire BFC team could come and
enjoy themselves."
The holiday gathering was held Thursday, January
8th at Meze, a hip new Greek restaurant located in
City Square in Charlestown. The evening included
cocktails followed by a delicious Greek style dinner
complete with appetizers, wine, dessert, and coffee.
"It was the first time I had been there,"
noted Kris Limaye, BFC’s Marketing Manager,
"But it certainly will not be the last.
Hopefully this is the first of many company
gatherings there. Meze is just a few short blocks
from BFC’s headquarters in the Charlestown Navy
Yard.
