Growth & Grace

Wesley Knight 0:00
This is a KU NB studios original program. The following program is underwritten by Crawford management group and Chris glow and does not reflect the views or opinions of 91.5 jazz and Moore the University of Nevada, Las Vegas, or the Board of Regents of the Nevada System of Higher Education even better than I was the last time. Baby

Leaha Crawford 0:35
we back and we back and we back and we back and we back. You, hey, hey, hey, good morning, Las Vegas. It is the fall. Yesterday was Nevada day, because I guess it was on celebrated on October 31 which is Halloween. You know? I hope everyone had a safe Halloween. Julian, how are you pretty good. I know last year you got me you were watching college football. Who you watching? Well, the Eagles are on a buy this week. I know that. You know my little bit of knowledge. I know that they're on a buy this week because they said it about 1000 times while watching the Giants, right? I'm sorry.

Julian Rosado 1:15
Good. NBA now still on? You still

Leaha Crawford 1:19
on NBA? They just started, all right, so we'll have some more conversations about NBA. NBA, well, y'all, it is the fourth quarter, and I thought it was important, but we thought it was important to bring back some amazing guests from Western alliance bank. So, Lamont, Keith, are you

Keith Jackson 1:35
doing great? Busy, productive, productive,

Lamont Fitts 1:38
productive. Yeah, I'm doing great. I'm doing great.

Leaha Crawford 1:41
Happy to be here. I know he's sitting here with this next cup. I ain't gonna say nothing, because I am a Sixers fan. But you know, we're gonna leave it alone. We'll talk. Yeah, we're gonna talk. Matter of fact, we need to go out the next time they play, next year, when they play, we need to go somewhere and sit down and watch the game. Let's do it. Let's do it. See what happens, and see what happens. Just see what happens. All right, y'all Western alliance bank. I love it. Y'all look good the name change, yeah, y'all look good. I love the it's a clean look that Western alliance

Lamont Fitts 2:12
bank. Yeah, thank you. And it really is. We've always been Western alliance bank, but in the different regions we we retained our regional name like we were bank of Nevada, because, you know, it had a name in the community, but it kind of made sense that, you know, with with branches in, you know, Arizona and in Las Vegas and Reno and Southern California, northern California, that we all pull into one brand name, and that's Western alliance

Leaha Crawford 2:39
bank, and that, You know what? It rolls to Western alliance bank, yeah, and you can, yeah, roll. I like that. I like it. You guys are the loan officers portfolio. I love it. Let me get that right. Portfolio managers, right portfolio managers, but you do work with people that are trying to acquire small businesses with the loan packages. Yes, correct portfolio. Man, I'm gonna write that down so I won't forget it. You'll never correct me again. Okay, got it portfolio managers. And I know we've talked about the product in the past, and I know that the product has changed a little bit, all right, so let's talk about it. What is this product that Western alliance bank is offering now?

Lamont Fitts 3:20
Well, what we used to call the streamline product is now been rebranded as the business advantage product, and it's a line of credit for $100,000 and under, and it has an interest rate of prime plus point nine five, and it's a five year term, no loan fee, $250 and dock fee, $50 processing fee. So really, your only fee for this five year term of a loan is $300 and the great part of it is that it there's no financial reporting. So we usually, you know, we have to get the business entity information, we have to have an application, but we're not in at the outset, requiring any financials,

Leaha Crawford 4:09
not any, any financials control. Okay, all right. So what are the I mean, what have you seen with the bank, with applicants? The I mean, because it's no doc, so why are you getting do people get denied?

Keith Jackson 4:23
Yeah, go ahead, they get denied, okay? Because it's a credit score driven. Okay, those are the main reasons why they do so, personal experience, personal credit score, experience, business credit score. We have a threshold that they need to meet. If they don't meet that and it's below that threshold, they get denied in those fashions.

Leaha Crawford 4:44
I wish. Can you guys take this back, teach business owners about business credit. Somebody needs to get back and teach business owners about business because we hear about it like you know how to build your personal credit. You know the things that you need to do, but business credit is so much information. Situation out there that is, I guess, inaccurate, or is not. I mean, it's not vetted all the way, just how, what is I mean, we know we have it. Yes, I see mine on with my with another bank. They have a thermometer, but I don't know how I got it.

Lamont Fitts 5:19
You got to understand, the goal of most lenders is to say yes to the client, okay, and but the but we can only say yes if the client is well prepared, and that is things like, you know they're planning for the business, their their documentation, their financial management, their their knowledge of their financials. That's important for a business owner, whenever you go into a bank, to have that information and that knowledge of your business, you have to have that grasp of of your business and where it is and what you need and how. And if you're coming to a bank and asking for a loan, we're going to have questions too. What are your plans for those funds? How are you going to use those funds? How those funds going to help you grow does? Does the product you're requesting match the structure of your business and your business needs? Because the main thing is that we have to, we want to put your business in the right product. We you know, we're not just trying to sell you a loan, if you will. We're trying to be a support and a partner in, in the growth of your business. So we want to put you in the right product to help you succeed. Because last thing we want is your failure in the bad loan

Leaha Crawford 6:30
and a bad loan, yeah, because those two go to Yeah, because those two go together, yes, those, those like, like your animals, those two go to fail business, bad loan. Yeah, right. But successful business,

Lamont Fitts 6:43
successful business is someone who, who, who knows what their goals are, understands how they need to get there. Fiscal Management, physical management is so important and you have to have a game. But let me give you an example. I had a gentleman call me, and you know, he was in the trucking business, and he felt he had, you know, grown the expertise in order to break out in his own start his own business. And I love that. But in my conversation with him, you quickly tell that his game plan was to have the bank fund everything he needed to to start up this business, and he didn't understand the capital investment that he needed to bring to the table when he started this business, and that what he needed to do to put in place when he came to the bank in order to Get what he needed that seems to be a lack of understanding, especially with startups, of how you need to structure and build your business.

Julian Rosado 7:49
Yeah, investor, a friend of mine told me to, he said, open up a Dun and Bradstreet account. So I did that, like probably about a year ago, and so he said, building a relationship with a vendor. And so I did that. And so I don't know if it I don't know how to check your credits, your business credit score, but I've been doing that for about, like, a few months, and so I don't know how that checks. You don't know how to you check your credit score on that, but when you go to the to the app, it says, like, you know your relationship with your, your, I can't say right on anybody who your vendor is, but right you know your, your your your credit is, is insubstantial. Is doing pretty well. But is that something you recommend or what

Lamont Fitts 8:41
business credit is a lot different than we think of personal credit, yeah, personal credit and Fico. With the FICO score in our advantage product, there is two aspects of it. There's the FICO score of any 20% more owner of the business, and then there's a business score. Now, even as the bank, because we go to a credit agency to pull that score. They don't give us the details of how that score is generated. What we can what we can assume is that it's the is the type of business, where that type of business is located. So they're pulling in information of like businesses. How are they doing in that area? How is that business doing in Las Vegas, and its length of time in business, it accounts for that, and it also pulls in a little bit of the owner's credit score. So there are a lot of things that go into the business credit score. The advice that it seems like he gave you is to just establish some history of that business with some business credit because I recently had one where we couldn't even pull a score in the business, because there was no public knowledge of that business out there. They hadn't really done anything out there that would kind of bring in something for that business. So it didn't even generate a score. And we couldn't go that route.

Keith Jackson 9:56
To your point, to lamont's point. You're a contractor. Yeah, you go to Home Depot. Often get a credit account at Home Depot that starts reporting, yeah, pay it Yeah, pay it on time. Yeah, yep. That's how you establish those trade credits. Yeah, that's what he's in business, yes, what

Julian Rosado 10:16
he's said to do, yeah?

Leaha Crawford 10:17
Okay, no, I just Yeah, because I'm one of those, I just, I didn't know. And I because I have the Dun and Brad, I did the Dun and Brad street years ago. It's been there sitting for years. Had no idea, and I think I wanted to buy something. And the guy was, well, you can have this thing, you can head out. I was like, hey, home. Wait, no,

Julian Rosado 10:38
yeah, your business probably, like, an eight I don't know.

Leaha Crawford 10:41
I don't know, I don't know. I just don't. The thing is, is that I don't, you, some people get credit and we abuse it, yes, and I don't use it if I don't have to. I don't use it if I don't have to. Yeah, because I'm always thinking, I mean, because my logic is, if I can't pay for it in cash, don't need it. Because every time I don't follow that logic, I get in trouble. Yeah, but every time I follow that logic, if I can't pay for it in full, I really don't need it, except for, of course, your house and your car, but your wants and needs. I like shiny stuff, and that's how I had to curb the habit. I was like, if I can't pay for it in full, I don't need it. Go work some

Lamont Fitts 11:20
more. But sometimes I give the advice that sometimes it's good to use it, and in that sense, sometimes it's good to maybe you have the cash on hand to buy that item you want. But you know, it may be advantageous to at least show that you use that credit. So you may want to buy that, and as soon as you buy it, you're going to go pay that off to that.

Leaha Crawford 11:40
Pay half of the I was told lead, don't pay it all off. Pay half and pay half. Pay something, but keep a minimum balance for some time, just so that you can establish the credit and watch the credit score go up. Yeah,

Lamont Fitts 11:51
and you, and you've and you, you've used it, you've paid it, and then you paid it down that that shows

Keith Jackson 11:56
a lot. And you avoid interest if you paid a statement balance within, you know the statement cycle

Leaha Crawford 12:02
period, I love it. I love it. So it's fourth quarter. What are some suggestions that you have? Because I'm sure the bank has as portfolio managers, you have other products, and other products might require documents

Lamont Fitts 12:14
correct. So anything over $100,000 we do, we do still do what they call streamline underwriting, from 100,000 to 250,000 now we don't initially ask for Financials on those, but we can. We can request financials. We can ask to verify your revenue, to see if you there's profitability. Another example, I just went to some people that that were looking to get financing for their business, they've they've done it all themselves. They haven't gone and received any financing anywhere. So now they were looking for some financing to grow their business. They need more people. And one of the first questions I we were talking about revenue. So how much revenue is in business? Let's, let's make sure we're getting you the right amount. You know, we they were asking for, really more than their revenue supported. But quickly, what I saw is that they, they had losses the last two years, and what I had to explain to them was that, as a bank, we have to justify every loan we make. Okay? And I can't put you in the product when your financials show that you can't repay it, and if you have losses the last two years, that means that cash flow is not available to to pay any additional debt. Like, that's why

Julian Rosado 13:36
I'm coming to you. That's why I'm coming so

Leaha Crawford 13:38
and that's probably was

Lamont Fitts 13:39
a response, and that in that is probably the one of the biggest misunderstandings out there, in in in the public, is that you're financing, you're trying to finance your cash flow shortage, and all that's going to do is is get you in more trouble. Say that again. Say that again. You are looking for financing, to finance your cash flow shortage and that and that's never going to solve the issue, because they because that loan that amount, may fill that gap for a temporary period. But if you don't change your business model, if you don't change how you're structuring your business, if you don't find a way to increase that, that profitability, or even generate any profitability, or even break even, you're going to find yourself in the same fight. And then now you now you have additional debt.

Julian Rosado 14:30
So now sounds like what America is doing right now.

Lamont Fitts 14:35
You know is you have, you have to learn, you have to learn how to to manage the structure and the cash flow your business, you have to understand business cash flow. Sometimes, I have to teach that, a lot to new business owners or unsophisticated in the finances of their business, is that you have to understand

Leaha Crawford 14:54
your cash flow. Let me ask you this, though, because I know with with other with with some other people, they certain numbers, they add. Back to the bottom line, like depreciation. Depreciation is one of those numbers, if the owner is taking a salary, maybe one, because that's subject to change depending on what the cash flow is. Is that also a consideration, like the amortization, depreciation, those those items that aren't really cash flow right, because item was purchased right, and it's over a period, and you just can't take the expense for it. You have to take it over the light. Do you take that into consideration as well?

Keith Jackson 15:27
Yeah, non cash items. Non cash items, we do add back to cash flow.

Leaha Crawford 15:32
Okay, yeah, got it. See if they can support, they can support the debt service, because that's money that's already been gone, and I just couldn't take advantage of it when it was gone.

Lamont Fitts 15:41
So, you know, not to get too technical in it. But there's what they call traditional cash, cash flow, which is EBITDA,

Leaha Crawford 15:50
right, right. But what is earnings before income and taxes go ahead.

Lamont Fitts 15:55
I'm gonna let the county, yeah, yeah.

Leaha Crawford 15:59
The thing because when people though, I have to remember when people, when we talk accounting or talk we sometimes throw terms out that we're familiar with, but the everyday person's like, what is that? Correct?

Lamont Fitts 16:10
And that's traditional cash flow, as you know, banks used to use, but now it's more where there are changes to the balance sheet, also that are inflows and outflows of cash also, right? So we take that all into account. And it's important that you know, as if you're a business owner, to leave some capital in your business, leave some of those retained earnings in your business, because that's it's it's very much looked at as as having savings in your personal life in the bank, you have to leave that amount of capital in your business, just in case you need and also, if we're looking at your if we're looking at your business, you need a line of credit. We're looking at different ways, if, in the distressed situation to justify you have the ability to repay that, whether that be collateral, whether whether it be you know you have cash flow in your business. You have assets that you could liquidate in order to repay that debt when the cash flow is short.

Leaha Crawford 17:09
Got it all right? So you're listening to growth and grace. I am Leah Crawford. This is Julian Rosado, and we have Lamont Fitz and Keith Jackson of Western alliance bank, the portfolio managers here in the studio with us. Let's give your contact information. So Lamont, you want to start

Lamont Fitts 17:23
so my contact information, my direct line is 70225263041, more time, 702-252-6304,

Leaha Crawford 17:34
and I bank at the branch that Mr. Keith is the portfolio manager for. So Keith,

Keith Jackson 17:40
you want to give me the information? Jackson, my direct line is 702-268-2048 Okay, one more time.

Leaha Crawford 17:48
702-268-2048 so at Western alliance bank, what I love is the customer service.

Julian Rosado 17:56
Yes, I open up account, business account there too, and every time you call it the actual person, person, and

Leaha Crawford 18:04
you don't have to go through the dots and the dots and the things and the person from across the water answer the phone, right?

Julian Rosado 18:13
Yeah, yeah.

Lamont Fitts 18:14
I think that's why you go to a community bank. Okay? And you're looking for that personalized service. You're looking to be able to talk to somebody. You're looking to have someone who you can go over your current position, whether it be you know, personal or your business. And how can we help you? What can we do to resolve your issues and and that's what I love. The aspect I love of community banking is that we give that you're not just a number. We're trying to develop a relationship. Then that's why Keith and I do what we do. That's why we are considered portfolio managers. More than just lenders, is because we're here to help you with your business needs. We're not just doling out loans, not

Keith Jackson 18:59
doling out loans. He stole it right out of my mouth. Yeah, that's the beauty of our role, Portfolio Manager. Once the loan is booked, we're part of the lending process, but once the loan is booked, we manage each of those clients. Okay, we may have 200 clients on average, and so there are needs over time with each of those clients. There are also, unfortunately, collection processes that we need to connect with our borrowers, with and ensure that payments are made on time, and can that continues over time. So, yeah, it's a it's a whole process. It's a

Leaha Crawford 19:41
whole process. And I love it, and I love the fact that you love your jobs, because then you put more into it, and it's consistency. You're not jumping from bank to bank to bank, because that also, because that's a relationship.

Lamont Fitts 19:52
Yeah, I can say I've been with this bank for 15 years now. Wow, 15 years. And the bank. Before that, it was, it was 12, but before that, there was a lot of that jumping around, but you found your spot. But you found you, you find your spot, and you find what you what you're looking for, and, and, and that's kind of what I found in community banking and especially in the commercial world. I can tell you, there's nothing I love more than seeing a business come in and getting a loan and then, and then seeing that business grow, and seeing how they advance that that is the personal joy I get out of what what I do is that, you know, I'm able to affect something in that community. So when I, when I drive down the street and I see your business, and I see you're thriving, and now you have a new location, I know I paid some part in that, in helping you grow your business and your dream. Now, are you local? I've been here

Leaha Crawford 20:46
long, a long time. I know you've been here a long time. No true stories. True story. So we were, I forget where we were, and one of my girlfriends, very good friend of mine, Miss Christie. Hi Christie. Hi Christy. So we're sitting across the table, and she look at him. She was like, son in law. Everybody know your name now? Son in law. Nickname, yeah, nickname, right. And all I could do because Chris, well, Christie's been here for a long time too. But really, to show just the community that and you, I mean you, you don't everybody I know that knows you. They speak highly of you.

Lamont Fitts 21:21
Well, I appreciate that. And really, I met Christy from people I went to unlv with, right? Okay, and that, and that whole community, that UNLV family is high no Christie and, and, you know, so I do go back in this community for a while and, and I appreciate, you know, I am a New Yorker. I'm a native New Yorker. I'm from Jamaica Queens and he's

Leaha Crawford 21:42
here for 40 years and still carrying his next cup

Lamont Fitts 21:46
that will never change. But I'm also a rebel, and I love how this community and the people in this community embraced me when I moved here, and the friends and lifelong friends I've made now here in this community, and watching it grow, watching this this whole area, watching this university grow, it's an incredible thing to me. You know, seeing from where, when I went here, and what the student union looked like, this building right here that we're in right now, wasn't here when I when I went to you, and I think so Okay, so, so just seeing the growth of this community and just playing some part in it that brings some satisfaction. Yes, it is yes

Julian Rosado 22:29
for some time and working with so many businesses, do you see any correlating aspects, or any correlating issues that you see going on like you can see like a well, this is a big issue that we see going on across all businesses that should be addressed.

Lamont Fitts 22:46
I don't, I don't. I mean, you have to what I see. You have to be able to adapt. And they're gonna, they're always going to be changes, and we're always going to go through cycles. And, you know, I've seen this, this town go through big real estate booms and then real estate bust, and I've seen tremendous growth. I think for the first 15 years I was here in Los and probably longer than that, Las Vegas, every year, was the fastest growing city in America. And then then it came to a point where that slowed down. And then there were other cities that started out growing it, but we're still growing, and we're just not growing at the same pace. But you got to be able to adapt to those, those high times and those low times as a business owner, and that's what I'm seeing the people who can, who can adapt and and who can make those maneuvers, are going to be here, the people that can and not prepare for those changes are going to fall by the West Side.

Keith Jackson 23:44
Consider the opportunity, though, once Vegas diversifies its industries, we're known gaming tourism historically, but when we get the that part right, when there's other companies that come here headquarter, other services, etc, that's an awesome opportunity, especially for banks like us, to support those businesses that land here. And I really do see that as something that's going to take place it has to, in order for us to be a better business climate, I

Leaha Crawford 24:24
love it. I love it. So I want to tell you, gentlemen, thank you about it, because I want to say thank you because we're coming to the end. So I want to say thank you, as always, for coming, for just making time in your schedule to come in and had a conversation with us.

Lamont Fitts 24:38
I appreciate that. But, and before we go, I would like to say this, I you know, we've come on here, and we've done the show a few times, and I appreciate you having us on, but some of the feedback I I received in in some of the people that have heard us on this show, is that they love this show, thank you and and that they really appreciate the knowledge that you two bring. To the table, because it is helping people. So I, you know, I appreciate you, and I appreciate your listeners who are out there listening, because I know they're staying in tune to what they're and they're in them absorbing a lot of what you're giving.

Leaha Crawford 25:12
I appreciate it. So I want to say this, though we are offering now more information about a tax class, because we we're gonna kick it off. We're ready to go now. Oh, good. So 702-382-5737,

Leaha Crawford 25:22
if you want more information about learning how to do taxes, personal taxes, we're actually going to take a six week course, and we're going to walk you through it step by step. Ask. You can ask any question, and let's get some good answers. Let's teach you how to research and and do the things so that we can put some good returns out there, so that they can see. Because I look at for me, I look at taxes as a way to do your annual checkup. This is what I did last year. Okay, I did this. Well, I did not do this. Well, you know, but how do I get in position to meet my goals? Because a lot of times it's money that stops people from meeting the goals. But how this tax thing can be a part of that? So, yeah, we're doing a six week course again, the number 70238257377023825737,

Leaha Crawford 26:17
it is the tax boutique. Yeah, the tax boutique. So I am looking forward to growing it. So I now looking forward to talking to you gentlemen about how we grow it, yeah, and what do we need to do? Julian, you have any final questions?

Julian Rosado 26:32
No, I think that was that was it. I'm really excited to get started and join that program that you guys are talking about, yes, which

Lamont Fitts 26:43
business advantage? Yeah, please. If anybody has any questions or want to get some more information, or not just that product, but any other lending need that they may have, we will always have that discussion

Leaha Crawford 26:55
with you. Yep, they can contact you. So give it, give us the contact information. Again, it's

Lamont Fitts 26:59
seven zero, this Lamont fits, and it's 70225263041, more 702-252-6304.

Keith Jackson 27:08
And Keith Jackson, 70226820481, more 702-268-2048.

Leaha Crawford 27:17
So even if they don't want the loan, maybe I'm not ready for the loan product at this time. Can I come in and just open up a business bank account?

Lamont Fitts 27:24
Absolutely, yeah, you sure can, and that, and that's always the way to start. And another change in in that business advantage is that you do have to have a checking account open before you can apply for the loan. So we want to make sure that you're in the relationship with the bank, so and, and also the new product of one of the features of new product is that it, once you sign the application and there's an agreement and disclosure goes with it, that's it. You don't have to sign additional documentation. That'll be, that'll be your loan agreement in your own paperwork. So it's, it's, it can be a very fast response, answer and getting cash to your business. You just have to have everything in place when you, when you come to us and and give us a call, and we can make sure you do so

Leaha Crawford 28:12
with anything. If this is something that you think you want. I mean, because today you might be I just want to open up. I just want to perform these widgets. Okay, start the business, you have to have a bank account, right? Yes. So open a bank account with a bank that you can grow with that wants to grow

Lamont Fitts 28:27
with you, right? And you know, you there are a lot of services out there that a lot of banks can give you, but what you're really looking for is someone who's gonna give you that personal touch, that relationship, that you're looking for,

Leaha Crawford 28:40
all right? So that brings us to the end of the show. Julian,

Julian Rosado 28:44
yes, you getting ready for watch your I think the Eagles,

Leaha Crawford 28:48
the Eagles are not playing this week. The Eagles are not playing this week. Thank you very much. So I have a free Sunday because the Eagles are not playing this week. So I don't know what I'm going to do this weekend, but I'm going to figure something

Julian Rosado 28:59
out. You don't watch the Sixers, six, six are doing pretty good. They are. They are, oh yeah,

Leaha Crawford 29:03
really good. I haven't started see I started watching NBA after all star because they're all I did after the all star game. I started, well, they had

Julian Rosado 29:10
a big upset. They beat the magic. I The Magic was looking really, really good. They beat the magics are on me.

Leaha Crawford 29:15
Okay, so maybe I need to go see who won that six squad. Because, you know, I stopped following all the idea, okay, I love but I love the game,

Julian Rosado 29:22
no. After, after,

Leaha Crawford 29:25
no, I watch him. No, so I watch him. I watch him. But after the all star game, just after the all star game, yeah, a lot of people pick it up after football season after football season, because I know I like

Julian Rosado 29:36
they play 80 something games they play that's a lot. Here you go. They are that load management, and she really stopped. They play a lot of

Leaha Crawford 29:46
games, all right? Until next week, until next week, we'll have some more interesting guests. Have an amazing and blessed week, and y'all stay warm because it's getting cold outside. All right. Bye.

Transcribed by https://otter.ai