PRESIDENT’S MESSAGE
by Frank A Coviello
President, Boston Financial Corporation
"How’s business?" That
is the question that I am most frequently asked.
And my response is usually the same, "Great!!!"
The clientele that Boston
Financial Corporation serves, being mostly small to
medium size companies, are most affected by changes
in the economy. When the U.S. economy is robust, our
clients usually experience rapid periods of growth.
When the U.S. economy is depressed, our clients
usually feel the impact of any slow-down. In either
case, our clients need access to capital and need to
stabilize their cash flow.
Traditional funding sources, such
as banks, become our allies in the course of changes
in the economy. Due to their very rigid underwriting
requirements, on many occasions, they are unable to
service their customer’s need for capital. This
creates opportunity for Boston Financial
Corporation.
Therefore, we are very fortunate to be in the
factoring business. Our business is practically
recession proof. How many companies can boast that
"In the good times business is good and in
the bad times, business is better"?
CLIENT SPOTLIGHT
As kids around the globe head
back to school, they may see a new learning tool in
their classrooms this year - Digi-Blocks. Digi-Block,
based in Watertown, Massachusetts, created The Digi-Block
Learning System™ - an effective math teaching
system designed for K-6 students. It is simple,
intuitive, and innovative. It also has been proven
to increase math test scores. With Digi-Blocks,
children who used to find math class to be a painful
experience, now find learning math exciting and
pleasurable.
Digi-Blocks, the central
components of the The Digi-Block Learning System™,
are math manipulatives that help young students
learn to read and write numbers, the basic
arithmetic operations (addition, subtraction,
multiplication and division) and, in the middle
grades, decimalization, exponents and many related
concepts, all in a fun-filled and rapid manner.
The Digi-Block system was created
by Harvard professor and mathematician Elon Kohlberg
in 1992, who invented the system to help his nephew
learn about math. The system became a working
prototype in 1997 and after an overwhelming response
to the pilot program, Digi-Block, Inc. formed as a
corporation in 1999.
Digi-Block sells their innovative
learning system to schools everywhere. However,
school systems are traditionally slow to process and
pay their vendors. As a result, Digi-Block came to
Boston Financial Corporation early this year to gain
access to immediate working capital in order to
expand its operations and fuel its rapid growth.
"We were not seeing any bad debt, but rather a
slow turnover of our receivables" remarks Bill
Rosenthal, President of Digi-Block. "Boston
Financial Corporation helped us bridge this gap and
stabilize our cash flow." As a result, Digi-Block
has had the working capital to expand rapidly.
"BFC has been an integral part of our growth
strategy," remarks Mr. Rosenthal. "The
increased cash flow from factoring our accounts with
BFC has provided us with the resources to expand
into new markets across the country and now around
the world." In fact, Digi-Block has sustained
growth for several years. Since 1997-1998, the use
of Digi-Blocks has grown from only a handful of
classrooms in the Boston area, to over 7,000
classrooms in 50 states and 9 foreign countries.
Digi-Block will soon introduce a home version called
Breakthrough Math!.
Digi-Block was hesitant at first
to factor their accounts receivable due to a
negative perception they had regarding the factoring
business. However, after seeing the professionalism
of BFC firsthand, Bill Rosenthal was delightfully
surprised. "It is refreshing in the business
world today to have your expectations not just met,
but exceeded. I am extremely happy with our
relationship with Boston Financial
Corporation."
For more information about Digi-Block, Inc. visit
www.digi-block.com.
PARTNERSHIP CORNER
BFC Hosts Boston Networking Cruises
An integral part of BFC’s
marketing efforts consists of networking cruises
aboard the company’s 61-foot motor yacht, the NUERA.
On September 4th, BFC entertained other New England
factors with a three-hour Boston Harbor Cruise. The
cruise signified a unique event in business whereby
BFC invited its direct competitors aboard for a
networking and strategy related forum. BFC has
created a great working relationship within the New
England factoring community in which our direct
competitors are also our friends. Yes, BFC does
directly compete with other factors in the area, but
as Frank Coviello puts it, "We are all in this
together. When any firm in the area creates
awareness of factoring, we are all in a position to
benefit." In fact, some of the companies in
attendance have referred business to BFC, and vice
versa.
BFC also hosted a Boston Harbor networking event
aboard the NUERA,
on Tuesday, September 9th. This cruise was a fun and
productive event for bankers, brokers, consultants,
and CPAs. This event helped promote factoring across
the region. Guests enjoyed complimentary food and
cocktails as well as an exciting raffle. "We
are starting to hear people around the community
talk about BFC’s boat trips," remarked Kris
Limaye, BFC’s Marketing Manager. "People are
now calling us to get invited along, which shows the
awareness that these events are creating about
factoring and BFC." Future trips are also in
the works before the typical New England climate
makes boat trips impractical.
FROM THE SALES DESK
No Summer Slump for BFC Sales
All summer, while most people are taking it easy
and using up their vacation time, the Boston
Financial Corporation sales team has been actively
bringing in a host of new clients. "In the
past, summertime has traditionally been a slow
period here at BFC. But this summer, we recognized
this fact and made a conscious effort to increase
our client base," remarks Ray Dugdale, BFC’s
Professional Relationships Manager. The great aspect
of BFC’s business is that its client base is not
tied to a specific industry. As a result, summer
sales efforts have been focused on companies that
thrive in the summer months. For example, BFC
recently closed a new client in the school bus
transportation business. This client was preparing
for the upcoming school year. Another industry that
BFC has focused on is the construction industry,
which is also very active in the summer months. BFC
recently closed a heavy equipment rental and sales
firm as well as a utility-related services company.
AROUND THE OFFICE
BFC Donates Cans for Cancer Research
Boston Financial Corporation
recognizes its civil responsibilities and has always
strived to give a little back to the New England
community. One of several campaigns that BFC
undertakes is its participation in You Can Help,
Inc.’s redeemable can donation program. Formerly
known as Cans for Cancer, You Can Help has created a
program in which the proceeds of donated cans go
towards cancer research at New England Medical
Center. The Worcester, Massachusetts-based
non-profit company provides recycling boxes at
corporate locations and physically collects the cans
upon request. You Can Help has worked with over 500
companies in Massachusetts and currently has over
200 active companies involved in the program.
Each month, You Can Help provides
BFC with a statement reflecting the total amount of
money that has been raised. In Massachusetts, as in
many New England states, each can or bottle can be
redeemed for a $0.05 deposit. Boston Financial
Corporation provides free sodas to all of its
employees which in turn generates a significant
number of cans for donation to the program. BFC has
been involved with Cans for Cancer for over 5 years
and has raised a considerable amount of money for
the program.
YOU
CAN HELP (formerly CANS FOR CANCER)
Businesses
who wish to recycle cans may call 1-800-303-9222.
Proceeds go for cancer research. YOU CAN HELP
will provide you with free recycling bins and pick
up your donation of returnables at no cost to you.
PERSONNEL UPDATE
Aimee Parrott Joins the Operations Team
Last month, BFC’s Operations Manager, Michael
Fallon left the company to attend Suffolk University’s
full-time MBA program at Sawyer School of
Management. According to Richard Scott, BFC’s
Chief Financial Officer, "Michael will
definitely be missed. He was a valuable member of
BFC’s operations department." With the
departure of Fallon, Aimee Parrott, who has been
promoted to Senior Operations Associate, will take
over some responsibilities of the operations
department, while others will be overseen by Richard
Scott. "I look forward to the opportunity of
joining the talented operations department.
Hopefully I can take over where Michael left off and
help create a seamless transition for the
department," remarked Aimee Parrott. Aimee came
to BFC in early2003 as part of the administrative
team and has flourished ever since.
