About Boston Financial Corporation

PRESIDENT’S MESSAGE
by Frank A Coviello
President, Boston Financial Corporation

The holiday season is rapidly coming upon us. Thanksgiving is already here and Christmas and the New Year are just around the corner. It is the time of year that we should take the opportunity to look at our lives and count our blessings. It is also the time of year that we should think about how we can help those less fortunate among us.

Last Christmas season all of the employees of Boston Financial Corporation took turns ringing the bell for the Salvation Army at Boston’s Downtown Crossing. Due, in part, to enthusiasm, energy and determination, our employees raised a substantial amount of money which was used to help needy families. Each of our employees found their experience to be enjoyable and eye-opening. This year, we plan to again participate in a charitable or community effort that will benefit the needy.

So, as you go through the next few weeks, please keep in mind that the holiday season is a very difficult period for many individuals and families. Try to think of some of the ways that you can make a difference in someone’s life and then make the effort to help ...even if you only donate a can of food or a small toy. You will make someone happy. Perhaps, it will be you, yourself.

Best wishes to all of you.

CLIENT SPOTLIGHT
Maine Poly Acquisition Corporation

At times, even the best of companies experience cash flow pressures due to changing market conditions and corporate restructuring. A great example is Maine Poly Acquisition Corporation. The Greene, Maine based flexible packaging company recently rebounded from bankruptcy and has since re-established itself as a multi-million dollar firm. The company was founded in the early seventies by Bob Neal and Bob Ray, two savvy Maine businessmen. The company thrived for over twenty five years. However, in the late nineties, the company was forced into bankruptcy shortly after being purchased by an out-of-state venture capital firm. Fortunately, current Maine Poly President, Kimball Dunton, a turnaround management specialist, was able to purchase the assets out of bankruptcy and has effectively rebuilt the company from scratch. Due to the fact that Maine Poly represents the biggest employer in Greene, Maine, saving the company from bankruptcy in effect revived the economy of the small town. So much so that the revival has attracted state-wide attention including various articles in media sources all around Maine.

Maine Poly contacted Boston Financial Corporation in June of 2003 in the midst of an immediate cash crunch. According to President Kimball Dunton, "We had access to a $150,000 line of credit with our bank, but we were sitting on half a million dollars in receivables, so factoring was a very attractive alternative." As a result, factoring their receivables helped to accelerate their cash flow and ultimately increase their profitability. With the help of BFC, Maine Poly has experienced steady, controlled growth. "We are not out of the woods yet," remarks Mr. Dunton, "but we are growing and show tremendous potential." Maine Poly has in fact grown from over $2 million in sales last year to just under $5 million this year. Forecasts project that the company will continue to grow and take in around $10-$12 million next year.

The relationship between BFC and Maine Poly is one that has been beneficial to both parties. "We have always had a cordial and profitable relationship with BFC" remarks Mr. Dunton. "And they are exactly the type of client we are looking for," adds Frank Coviello, President of Boston Financial Corporation. "They are a growing company, have strong management, and have qualified receivables." Maine Poly has been factoring their accounts with BFC for over 5 months, and as they continue to grow, are looking to utilize BFC’s purchase order financing program to help secure larger scale clients and bigger orders.

Maine Poly manufactures plastic packaging for many consumer food companies. If you eat frozen foods of any kind, nuts, or fruit, chances are you have seen Maine Poly products firsthand.

PARTNERSHIP CORNER
BFC Launches New Referral Incentive Program

Boston Financial Corporation recently introduced a new referral reward program in which BFC will pay a $1,000 cash reward to companies or individuals who refer new clients to BFC. The referring sources can choose to receive the reward themselves, have it go to their company, or it can be donated to their favorite charity. "Many of the companies we contact, even if they do not need our services themselves, often know of other people that do, from their customers and suppliers to their colleagues and friends," remarks Kris Limaye, BFC’s Marketing Manager. Referrals account for a significant portion of BFC’s client portfolio, and this program should only help to increase that amount.

The $1,000 reward is paid immediately after the referred client satisfies the minimum requirements of the program. The program requires that a referred client must factor accounts for a minimum of three months and must accrue $100,000 in total factored volume. According to CFO Richard Scott, "We are more than happy to hand out this reward in return for new business. It is a win-win situation for both parties." Not only is the program geared toward increasing business for the company, but it also has the potential to generate considerable revenues for various charitable organizations because BFC encourages referring sources to donate the reward to the charity of their choice. For more information about the program, contact BFC’s Professional Relationships Department at 617-286-1000 or email info@bostonfinancialcorp.com.

FROM THE SALES DESK
Sales Leads Abound from Recent Trade Shows

Trade shows represent an integral part of BFC’s marketing mix and recent show activity has yielded considerable success. "BFC’s clients come from such a broad spectrum of industries, remarks Kris Limaye, BFC’s Marketing Manager, and thus the trade show opportunities for us are endless."

BFC has exhibited at three trade shows in the last six weeks. The OEM New England show, held at the Worcester Centrum (October 1-2), has already brought in new business as well as several highly qualified new prospects. Second, the Automated Manufacturing Exposition, also held at the Worcester Centrum (October 21-23), has provided several new business leads. And finally, the Boston Business Exposition, held at the Hynes Convention Center in Boston on November 13th has provided an abundance of potential new business. "We have been extremely pleased with our recent trade show efforts and are in the process of evaluating what shows we will be exhibiting at in the coming year," noted Mr. Limaye, "We hope to continue to utilize trade shows to bring in new business." With the many misconceptions around the business world regarding factoring, trade shows provide BFC with a great medium to explain face to face with a large number of prospects how factoring services can be beneficial to the profitability and growth of many companies."

AROUND THE OFFICE
Charlestown Provides Perfect Business Location

In June of 2002, Boston Financial Corporation left small, cramped offices in Fanueil Hall marketplace for its new headquarters at Flagship Wharf in the Charlestown Navy Yard. The new office overlooks Boston Harbor and the downtown skyline. "This location provides the best of both worlds," remarks Frank Coviello, President of BFC. "It is easy to get to for our clients and employees, and provides a comfortable environment and a scenic landscape in which to work."

The office, located at Flagship Wharf is easily accessible from I-93 and the Tobin Bridge. It is also located adjacent to the Charlestown Navy Yard dock for the MBTA Inner Harbor Ferry that travels to North Station and Long Wharf. BFC employees can hop on the ferry to quickly head to downtown appointments or jump on the highway to travel outside the city. The office provides underground parking and exercise facilities for all BFC employees. "I love coming to work to work at the new office," raves Courtney Moore. "There is no downtown traffic; there is easy parking; and an amazing view from the office." I could not imagine a better location than this."

PERSONNEL UPDATE
BFC Looking to Expand its Operations and Sales Departments

In an effort to build on recent momentum from increased sales, BFC is looking to expand its staff by adding a new Operations Associate and an additional Business Development Officer. "We are seeing a rebound in the economy and our recent growth in sales volume has been the result. Thus we are in the process of adding staff to handle the added workload," remarks Richard Scott, BFC’s Chief Financial Officer. BFC is looking to add another operations associate to help handle the increase in factoring volume. The increase is a result of two factors. First, existing clients have seen an increase in their receivables, and second, newly added clients’ sales have created additional volume. According to BFC President, Frank Coviello, "It is a nice problem to have, having to expand our staff to keep up with sales growth."

In conjunction with adding to the operations department, the company is looking to add an additional salesperson. "We hope to continue this upward sales trend and are aggressively adding the staff to make it happen," remarks Marc Kenney, a Senior Business Development Officer with BFC. The new position should add to an already highly successful sales department. For more information about available positions at Boston Financial Corporation, visit the corporate website at http://www.bostonfinancialcorp.com/jobs.html.