"Recession-Buster" Tips Accountants Can Offer Clients

(Excel National Bank Offers Strategies During Economic Downturn)

As dire as economic forecasts may be, some experts are saying that now may be the optimum time to fortify your business and plan for prosperity. According to Brian Carlson, president and CEO of Excel National Bank, businesses that have incorporated sound strategies during economic downturns usually emerge much stronger once the economy rebounds.

"Historically, those taking advantage of market conditions during challenging times eventually prosper," said Carlson, who regularly advises accountants and financial planners about specific strategies. "These experts want to help their clients free up much-needed capital, fortify their position in their respective industries and strengthen their overall financial picture so that they can survive the current climate and come out even stronger once the economy turns around."

Among Carlson's most common recommendations:

• RENEGOTIATE OFFICE LEASE - Landlords will oftentimes renegotiate a lease in order to keep you as a tenant even though you may be locked into a long-term agreement. It's not uncommon for them to lower the rent rather than risk losing a reliable tenant and source of revenue. If they won't budge on the rent, perhaps they will consider other perks such as added parking, a break on utilities, etc.
• CONSIDER PURCHASING COMMERCIAL SPACE - Owning your own office may prove more financially advantageous than leasing it. With real estate prices plunging, there are deals to be had in the commercial market. Not only may you benefit in the long run as this asset appreciates, but there are tax benefits associated with such a purchase. Also, if the space is large enough, you may even consider having tenants so you can generate added revenue.
• PURCHASE NECESSARY EQUIPMENT - Instead of leasing major equipment, consider purchasing it. Whether it's a commercial printer, manufacturing tool, forklift or state-of-the-art production equipment, reexamine your lease and see if purchasing might prove more prudent. Also, the market is growing for previously owned equipment so explore that cost-savings alternative.
• REFINANCE DEBT - If you've made a significant purchase in recent years and find that the monthly payments are becoming increasingly more difficult to handle, explore other financing options that will lengthen the term of the loan thus lowering those payments.
• REEVALUATE COMPANY'S BENEFITS PROGRAM - When was the last time you examined your company's health benefits package? How about the 401K or pension program? This may be the time to sit down with your accountant, insurance agent, etc. to explore cost-savings measures.
• CONSTRUCTION TIME? - Many of those in the building industry (e.g., architects, contractors, etc.) are hurting right now, so this is an ideal time to get a long-awaited construction project off the ground. Loans, particularly SBA loans, are available to push through such projects.
• PARTNER OR MERGE WITH ANOTHER BUSINESS - Now may be the time to join forces with a competitor or even purchase another company that is similar to yours. If you're starting from scratch, begin scouring publications read by your industry and/or attend trade shows to explore opportunities and develop companies to target. If a merger makes sense, make sure that you are "on the same page" as far as future plans and methods of doing business are concerned. When considering purchasing another company, do your due diligence and know what you're getting into.
• LOOK FOR BARGAINS - Scan your trade publications or the online services that pertain to your industry to determine if any of your competitors are going out of business. If so, you may be able to help them liquidate while helping your company acquire some much-needed equipment. Items like color copiers, manufacturing equipment, etc. are increasingly being sold for pennies on the dollar.

"While some types of loans may be difficult to secure, SBA loans are fast becoming a viable alternative," said Carlson. "With small businesses (those with fewer than 500 employees) serving as the backbone of our economy, the federal government is recognizing the need to fuel their growth. Now is the time to take action and those who do may find themselves in an enviable position as the economy rebounds."

Excel National Bank has been recognized as a leader in banking in terms of safety, strength and performance. It was recently awarded "Super Premier" status - the highest honor granted -- by The Findley Reports, a nationally recognized bank research and rating firm. In just two years, the bank has rocketed to the 22nd spot in nationwide SBA lending with 228 loans totaling $200 million. With assets of more than $120 million, Excel offers a full range of services including commercial real estate loans, construction loans, business lending and comprehensive retail banking services.

Its growing reputation as a preferred SBA lender, however, is the key factor in its meteoric rise. Excel has helped a wide range of businesses from motels and gas stations to professional groups (e.g., medical, dental and law practices) expand their operations and realize their true growth potential. Its primary strength is its ability to help clients quickly and efficiently navigate through the complex SBA lending process.

Headquartered in Beverly Hills, Excel National Bank maintains offices in Los Angeles, San Francisco, San Diego, Sacramento, San Bernardino and Fresno. Its out-of-state offices are in Chicago, Phoenix, AZ and Bellevue, WA. For more information, call (310) 362-2000 or visit www.bankexcel.com.