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Acrecent Financial completes private issuance of additional equity by local investors
Financing and commercial leasing company plans to provide $44 million in financing to local small and midsize businesses this year
JOSE L. CARMONA
May 20, 2005
Local financing and commercial leasing company Acrecent Financial Corp. (AFC) has completed the private issuance of additional equity by local investors, which will provide the firm with greater capacity to fund a larger volume of transactions for its commercial customers.
"The additional capital will allow Acrecent to continue with its vision to serve small and midsize businesses by providing financing and leasing of commercial equipment considered essential to customers for which few or inadequate financing alternatives currently exist," AFC President James Conner told CARIBBEAN BUSINESS.
Conner declined to reveal the local investors who provided the additional equity or the amount, citing a confidentiality agreement. Nonetheless, he said the firm has plans to provide $44 million in financing this year.
"That doesnt sound like much moneywise, but when you talk about transactions for small businesses that range between $20,000 and $500,000, the number can be significant," added Raúl Cacho, AFC vice president & co-founder. "Banking institutions havent served well the commercial sector when it comes to small businesses, and that is a niche we want to serve."
The firm was formed in 2003 by Connor and Cacho, who have vast local experience in the commercial leasing and lending fields. The company provides a variety of secured opportunities and leasing products to customers in various industries such as healthcare, manufacturing, industrial supply and support services, distribution, ports, rental, and construction.
Conner, who has nearly 11 years experience in the commercial finance industry, said Acrecent is one of the few institutions on the island to offer true leases for commercial equipment, which significantly reduces a customers monthly payment while 100% of the capital required to purchase the equipment is provided. At the end of the lease term, the customer may opt to return it without penalty and upgrade to one that is more technologically advanced, extend the lease period, or purchase the asset at its fair-market value, the Acrecent president added.
The company also offers accounts receivable factoring, which Cacho said is an excellent tool for businesses that dont have access to lines of credit. The main advantage of factoring is that no financial statements, collateral, or guarantees are usually required other than the same receivables, the AFC vice president noted.
Acrecent finances or leases commercial equipment such as CT scanners, X-ray machines, dental, and other healthcare equipment; food processing machinery and restaurant equipment; packaging equipment; machine tools; injection and blow molding machinery; aircraft; computers; telephone equipment; office equipment and furniture; print presses; fleet cars and trucks; air compressors; transformers; forklifts, trailers, tractors, bulldozers, cranes, earthmovers, excavators, loaders, and other construction equipment; conveyors; and recycling equipment.
This Caribbean Business article appears courtesy of Casiano Communications.