Archive Links

Consumer Archive
CU System Archive
Market Archive
Products Archive
Washington Archive

News Now

Products
ProfitStars service helps FIs support energy markets
MONETT, MO. (12/5/11)--Financial institutions using the BusinessManager accounts receivable financing solution from ProfitStars are increasing their return on assets (ROA) while meeting the business lending needs of their members/customers in the oil and gas market, said ProfitStars.

BusinessManager has assisted financial institutions in funding more than $500 million in accounts receivable for the energy "play" space since 2009.  

ROA, a key indicator of a company's profitability, averages 0.88% among domestic financial institutions, said the company. ProfitStars' clients average 10% ROA on business accounts that use BusinessManager and 13% for accounts in energy play markets.

Many financial institutions serving the energy play market--which includes areas in the Midwest, Northeast, and Southwest experiencing significant oil and gas industry growth--need alternative financing options to offer quick cash flow to business customers, said ProfitStars.

BusinessManager is used by credit unions and banks to accomplish two primary goals: assist creditworthy business members/customers with management and funding of accounts receivable; and earn recurring income.

"Financial institutions in energy play areas have the potential to tap into a significant source of recurring fee income if they are prepared to meet the unique lending needs of these business customers," said David Foss, ProfitStars president. "And providing these business [members and] customers with the cash flow they need to grow their businesses creates the ongoing need for manpower, materials, and services and community-wide growth opportunities. BusinessManager bridges the gap between outstanding accounts receivables and cash flow, and empowers financial institutions with a distinct and lucrative lending solution."

ProfitStars maintains a Commercial Lending Online Knowledge Center to educate financial institutions on moving beyond traditional lending strategies, whether they are diversifying their portfolio or expanding their commercial business base by bringing in new deposits, growing earnings and enhancing asset quality.


RSS print
News Now LiveWire
Housing starts swell in July #NewsNow #Market http://t.co/EdKIhXEj9l
2 hours ago
Consumer inflation tapers after spring surge #NewsNow #Market http://t.co/bgvQd8fyuF
3 hours ago
Have you read this one today in #NewsNow? What NCUA examiners look for on cybersecurity efforts: NCUA Report http://t.co/4g5wUavUAe
4 hours ago
.@CFPB sets $2.75M fine v. auto finance co. it says "distorted consumer credit records for years": TX-based First Investors Fin. Serv. Group
4 hours ago
University, college #creditunions add fin ed to higher ed. See #NewsNow http://t.co/NsyshwHPhg
6 hours ago