The Voice of Industry includes trades, engineers, executives, business developers, and more; but financing and capital is what inevitably funds a business expanding into new markets, updating equipment, purchasing new property, or completing an acquisition. In episode 15 we are joined by Brad Kiendl who is the founder of Ashdown Capital. They specialize in assisting business owners and developers that seek financing for their business and projects.
Commercial financing often has many moving parts and every company is unique with their own set of goals, return on assets, short and long term debt, management structure, and the list goes on. Brad shares the range of deals he has seen completed and gives examples of the financial range he has worked with. One example is a large national transportation company who is financing new trucks that has large property holdings with solid working capital and strong operating margins, as opposed to a bitcoin mining operation looking to finance new equipment. Both require capital, however, one is going fetch greater interest from the major banks who lend at lower rates while the other may move to private lenders who have more appetite for risk but will only lend at higher rates
Someone who is new to raising capital or dealing with commercial banks and corporate lenders may not find it easy to understand the important differences between personal financing vs. commercial financing. Brad points out that for most deals the banks will look at controlling shareholders personal credit to get a picture of who they are as an individual but commercial lenders primary focus is the company’s assets, management, operations, and above all their cash flow. It is also important to understand that in residential the rates publicly posted by financial institutions are what you will pay within 0.5%, whereas commercial your interests rates are heavily dependent how the company has performed and managed free cash flow and their return on assets.
Ashdown is unique to most commercial brokers. Many firms focus on real estate and commercial property development while other brokers offer asset financing. The company Brad and his partner Ryan Turner has developed covers everything from equipment financing to commercial real estate and working capital loans. This range offers their customers the opportunity to use one firm to structure out their full capital requirements and then work with Ashdown to present “the story” to the banks, credit unions, and even private lenders.
Not long into this conversation with Brad it is clear he has a sincere desire to help businesses raise the capital they need for the right rates and terms. During the show he talks about which parts of networking and relationship building comes naturally to him and which parts he has developed from mentorship such as developing strong partnerships. As Brad points out so much of business still comes down to people and the relationships you build with them. He gives the perspective that your lender is not just your creditor, they are your partner and vendor, and that if properly structured and managed they can equip a business to pass better purchasing terms on to their customers. Businesses all have unique opportunities and challenges, and making sure the financials are your asset not a liability is a key step to being equipped to seize opportunity and withstand the challenges.