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 that was the last time, baby

Leaha Crawford 0:35
we back and we back and we back and we back.

Leaha Crawford 0:44
Angry is my birthday month. It's my birthday. Full disclosure, it's real close today, though, let me say that just let me add that real close Pisces season, and I want to say happy birthday to Ashton. Ridley, happy birthday to kappa senior homes, because we are board members and we celebrate this Pisces thing, right? So, happy birthday. Y'all, happy birthday. Tt Henrietta, I mean, I know I can list a whole bunch of Pisces Happy Birthday. Dr Wilson, it's a whole lot of us that I celebrate Happy Birthday. Erica Silas is a whole bunch of people that I can tell you whose birthdays are in the month of March. Happy birthday. Jennifer, give she's not a Pisces, but she, you know, she's in the month, you know. So it's a lot of I could go on and on and on with all the birthdays.

Julian Rosado 1:36
Are you a rages fan? Yeah, happy birthday. You just got back Max Crosby, I did, yeah, cuz he was traded. Well, he was gonna be signed to the Baltimore Ravens, but he didn't pass his physical. So now he's, he's, he's back to the Ravens. So okay, so now you got a top defensive end. Now, where at the Raven? No, had the Raiders. At the Raiders? Okay, well,

Leaha Crawford 2:05
that's good, that's good. But I missed you last week because it's March Madness. Yes, it's March Madness. Who you got? Yeah, I

Julian Rosado 2:14
do like Gonzaga. Okay, that's who you got. So I'm gonna

Leaha Crawford 2:18
let our guests chime in on that too, because it's March Madness. I got a whole bunch of men in the building, all right, Keith, do right? Keith Jackson, we have Western alliance banking here with us. We're other things, but we got to get to this March Madness first.

Keith Jackson 2:30
Who you got? I want to see by you do something.

Leaha Crawford 2:33
Okay, I like it. All right, who you got? Who you got?

Lamont Fitts 2:36
To be honest with you, I haven't really watched too much college basketball this year. Seen a couple of games with BYU Duke, North Carolina, very impressed with how UNLV came back yesterday. Nice. They have a big one today.

Leaha Crawford 2:51
They got a big one today. Well, you wanna know what shots out to you the UNLV basketball team and coach, pastor, I'm passing her eye. I pray that they, you know, hey, UNLV, because every you know it's March Madness. It is March Madness. And this is my favorite month when it comes to basketball, because the games are absolutely amazing. And of course, I got USC, I'm going doing stately. All really, yeah, I don't care what, no, I don't care what I'm doing stately. I'm with you on now. I'm doing stately. Now. I don't care what happened. Doing stately, doing stately, yep, yep, yep, yep. Philly girl, absolutely, absolutely, no you, you have to. You want to know why I like what I like about her is in watching her is the care for the players, and she talks about having a different work ethic, and talking about having a backyard work ethic as no as a in a real work ethic. And just, she's just dropping gems all the time, if you watch and follow her, and I've been following her for a long time, but closely lately, just watching her. So I USC. Man, I'm and I thought USC was, was the one in California first. But I was like, oh, because I have family members that were actually in laws. My sisters in laws, they're from South Carolina, so when they used to say USC, and I was like, Y'all go to California? They like, No, honey, South Carolina. I was like, so yeah, you know, just watching it, gives you a broader perspective, but Shouts out to all the coaches, the players out there, because it's a lot of stuff going on in today's environment, and you still have to be in the mindset to get out there and play this game. It's a lot going on. There's a lot going on. We don't get into that. That's a lot going on. All right, y'all. So we have Western alliance bank in here with us today. So welcome to the show. Mr. Keith Jackson, glad to be here. La Moffitt, thank you very much. Hey. So, as always, we bring the bank in, because this is a business bank, and I love that they are a business bank. They found their niche years ago, changed the name in. Are making moves out west. So not only here in the state of Nevada, lost in Las Vegas, but in Arizona, in California, Utah, too. Are you guys or just those three? Not in Utah, yeah, not Utah, yeah, but those three states, correct? Yeah. Okay, those and just watching and then just watching them grow this business product that we're going to talk about today. So let's talk about this streamlined business product.

Lamont Fitts 5:25
Yeah, so what they what they call it now, we used to call it the streamline approval process, where it's for any business who's been established for more than two years. We offered this product where you could get approval without submitting a full package of financials. This this year, they've changed that product a little bit. Now it's called the Business Advantage revolving line of credit. And what that is, is it provides a revolving line of certain credit limit to businesses to draw down and pay down and draw and draw up and pay down. We can do it now for up to 100,000 Okay, the main requirements are pretty much the same as they were. You have to be in business and register with the Secretary of State, Nevada. Secretary of Nevada, Secretary of State, be clear now that being said, if your California business or your Arizona business, we can still do those because we have, we have banks in those areas, so that is our market area. But you know, it's, it's a great product for especially for a business that needs something to kind of gap those receivables that they have, you know, between the time they have to buy their supplies and create whatever product that it is that they're selling, and the time they get paid, sometimes businesses need that gap funded, and that's what that line of credit is really good for.

Leaha Crawford 6:57
I love it. So how long have you both been working for the bank separately? Keith, how long have you been working with the bank? Four years. Four years.

Lamont Fitts 7:05
Lamont, this year was my 16th year with this Wow.

Leaha Crawford 7:09
16th year. Okay, all right, in 16 years. So what are you finding to be the challenge for most entrepreneurs coming into the bank for this product?

Keith Jackson 7:22
Yeah, I think one of the things I'll touch on, and I'll come back to the other one, is just their understanding of their need, but also combining that with a product we have to support that need. I think there's a disconnect with if an individual needed a revolving line of credit, what does that mean to a business? That line of credit is put in place to support gap funding. But sometimes we have businesses that come and they have a term need, meaning it's a one time, for example, need where they're purchasing equipment. That's it. A revolving line of credit is not used for purchase equipment. Yeah, they can use that as a part of the line, but the main function of the line of credit is a you got receivables, you are waiting to collect on that receivable. You've already realized the sale, but you're waiting to get paid. You have to pay your own staff, for instance. So you lean into the line of credit to support your overhead until you get paid.

Leaha Crawford 8:47
All right, so instead of using factoring, in other words, instead of factoring your receiver, which is more expensive, which is more expensive,

Lamont Fitts 8:57
yes, yes, you have an answer the same, the same things that Keith just said, I mean, that's very important, and that's part of our job to make sure we're putting the customer into the right product.

Leaha Crawford 9:08
So what if y'all make a mistake and put the customer in the wrong product? How can you help the customer? Then, course correct. Can you help the customer? Course correct?

Lamont Fitts 9:17
Oh yeah, yeah. Usually you can. You can if, if you have a line of credit that's been fully advanced over a long period of time, that pretty much tells us that probably needs to be a term loan, and we can convert that into a term loan where you're making equal payments of principal and interest each month until that loan is paid off. What happens sometimes is that people use the line of credit for the wrong reasons, where they need a more, longer term financing for whatever they wherever it is that they use that those funds for and and they get into a position where they like making interest only payments each month, but then when it comes to maturity, and now you have this big debt that. You owe or that you haven't paid down. Now we have to figure out something. So it's better for them to get them into the right product at the beginning, rather than trying to fix it at the end. But we can't do that.

Leaha Crawford 10:12
But you can do that. Well, I love it because it's like, okay, you made a mistake. We got you in the wrong product. So how do we fix it? And you don't have to put your head in the sand and say, Oh, just how do we fix it? And then how do we move forward and do something? Because we want you to be in business, right?

Lamont Fitts 10:29
And we want you to have the fund, those funds available for you when you need them. Because that's the other problem that happens is that where maybe they use their line of credit for something that needs to be amortized over time, but then they have those same needs for the to get those receivables, and now they don't have the funds anymore available to to draw on those so what happens is, now you're coming back for more money when really it's just a different product you need it in the first place.

Leaha Crawford 10:56
Got it. Okay. Now how do you how do you assess that, though, is it conversations with the customers?

Keith Jackson 11:04
Absolutely, part of our role is to be an advocate, behalf of business owners. Prime example is if, like Lamont in his example, said, the line is fully advanced, we provided $100,000 revolving line of credit. It's at $100,000 keep in mind, if they're not revolving the line, then they're paying more in interest. So when they, in my example, earlier, are collecting on receivables, getting paid themselves, they should be paying that balance off or down, so that they limit the amount of interest burden that they have got it paying on a monthly basis.

Leaha Crawford 11:47
Because I know you have customers that come in and pay off the whole thing at one time. Oh, yeah, yeah. They come in, they use it for what is used for, come and pay it off so they can use it again.

Lamont Fitts 11:55
And those usually well functioning businesses, okay, as you, as you learn, as as the business owners learn how to use these tools, that they have, these financial tools that they have, the ones that use it the way they're supposed to usually are the more successful businesses. So that's that's important thing. You know, you want to put your business in a position where you're making the right decisions, where you have these, these fundings available to you when you need them. So that's why, on the front end, we trying to, you know, figure out what, what truly is your need. A lot of people learn, you know, here I have a line of credit. My business has a line of credit. Well, I need a line of credit, and you and you may, but maybe that need that you have, maybe that equipment that you want to buy, maybe that inventory that you needed, you Ness you may not necessarily want to use a line of credit for that, because it's a longer term payment period. And just like Keith said, when you're paying principal and interest on those those dollars that that does reduce your overall interest expense to your business, and that comes straight out of your bottom line.

Leaha Crawford 13:03
I love it. I love it. So how would you okay? So a customer comes in, they go through the process, because you guys are very, I mean, you're amicable and very friendly, very easy to talk to, but how do you have the hard conversation with someone to say, maybe this is not the right way to go, maybe you need to do something else, because the business could have been doing well. And I mean, this environment is changing constantly, and a business that flourished two years ago might be having some challenges now, and might have to figure out how to pivot. So what do you say to them?

Lamont Fitts 13:40
Well, a lot of times is, is that's when you have those conversations, okay? That's when you need what Keith and I are portfolio managers, okay? And and the great thing about being at a community bank is that you do have that one on one. You do have someone you can talk to. You do have someone that will come out to your business and sit down with you and talk. I recently had a meeting with a with a customer, and we sat down and we talked about what their needs are, and what what they what they needed funds for. And as we have that conversation, it's kind of easy to figure out, okay, you may need a line of credit this amount for, for of a line in this amount in term financing, and we can do both, but it's putting them in a position, and, and, and the example you brought up is, is, you know, this volatile time right now where businesses don't know exactly where the current economy is going to go. The worst thing is that you have a line of credit that's fully advanced, and now you can't use it. So have these tools available to you. So in the good times, I always stress to businesses in the good times when when that cash flow is flowing, pay down that debt, pay down that line of credit, because you never know when that cash flow starts to slow down. You're gonna need it. You're gonna need it. So you. Just have to be strategic and smart as a business owner on how you use these financial tools to benefit your business,

Leaha Crawford 15:06
and what they are. Financial tools. Are financial tools, and you should use them.

Lamont Fitts 15:11
Yes, you use them, yeah, and educate yourself as a business owner, I think that's the most important thing. I try to stress to business owners, know your financials. Get with your accountant.

Leaha Crawford 15:26
Go over, what if I don't have an accountant? And because what I find is a lot of them don't have accountants. They don't see the benefits, the benefits of having an accountant, you know, they look at, you know, the cost, but I don't know if they do cost benefit, but the cost of but the cost benefit, they're like, no, they cost too much. I don't really want to have an account.

Lamont Fitts 15:48
Yeah, we see a lot of in house bookkeepers, more so than accountants, and they can, you tell the difference? Yes, because they can run the software, they can plug the numbers in, but it's, it's that, it's that knowledge that you can get of what those numbers mean. I think that's the most important part. And I think it's always good to have an accountant that can go over those things with you. And I always tell business owners, review your financials. If you get in quarterly, monthly or quarterly statements as a business owner, don't depend just a bank statement. No, just don't depend on your bookkeeper to figure that out, because that that's gotten a lot of business in trouble. I'm sure Keith can expound them.

Keith Jackson 16:29
Yeah, more sophisticated CPA or accountant who knows

Leaha Crawford 16:36
y'all speaking my language, but you know that that's what I do and and I find it a lot, because customers come in and someone they've been doing their QuickBooks or whatever, and the first thing I look at has, have you reconciled the bank accounts? Yeah. And I want to say nine out of 10 never even looked at a reconciliation. Have no idea

Keith Jackson 16:57
the advantage of that is a balance sheet income statement tells the story and statement of cash flow and statement of cash flow over time. So that's why we request multiple years so that our underwriting team can evaluate what those changes in the story is for over the last few years, because it will say something.

Leaha Crawford 17:24
It's funny, because I know many business owners, they look at the bank statement. They look at their bank statement and their cash balance, and that's how they operate their businesses, from the cash statement, and they're not even looking at the receivables, and they're looking at those two things. And you're right. When they get more sophisticated.

Leaha Crawford 17:43
They look at the balance sheet. A lot of people don't look at the balance sheet, but they look at the balance sheet, and they look to see how the money is flowing. Because I remember a client came in and he didn't understand, he didn't understand why he didn't have any money. And we were able to sit down and break down everything. And he was like, oh, oh, okay. Or they're showing a net income, but not cash flow. I'm like, because you're servicing debt, right? Because you're paying, I mean, you're paying your debt back, right? And now you got to pay taxes on this income, but you got to pay the debt back. So yes, a lot,

Keith Jackson 18:21
or some, a lot of business owners say, oh, man, I'm growing 50% each year. What is that, though? Yeah, revenue growth. It's looking great, but you have to support that revenue growth. And how are you doing? So through cash, what does the changes in your inventory look like cycle, because that's going to put a burden on cash as well, right, depending on whether it's going south or north. So, yeah, it's all those a little idiosyncrasies that we really have to help these business owner owners understand.

Leaha Crawford 18:57
I love it. I love it. So can we have some contact information? Lamont, you first got information.

Lamont Fitts 19:02
Lamont fits with Western alliance bank. My phone number, 702-252-6304 that's 702-252-6304

Keith Jackson 19:12
Thank you. Keith Jackson, Western alliance bank, 702-268-2048 that's 702-268-2048

Leaha Crawford 19:22
and I love it, because sometimes I think we have a hard time as business owners, being vulnerable, not knowing who we can trust. And that is, I know I it's hard. That's a that's a challenge for a lot of us, because you really don't. You know, you just don't. You just don't want everybody in your financial stuff. So what would you recommend to a business owner? Okay, if they're looking for an accountant, say they're at the price. How would you tell them to interview some accountants to see if it's a good fit?

Keith Jackson 19:57
Well, fortunately, we. We as a bank, even have accountants and lawyers in our own portfolio. So we have engaged with these professionals. We get a good understanding of how they operate and how they operate their business, because we have to evaluate their own business so that alone, they can trust in us to refer them to a couple and then allow them to interview the few that we might suggest to them and get a feel for them and decide upon that. But we have opportunities to provide them with the options.

Lamont Fitts 20:41
Got it. I always stress references. Talk to other business owners that you know. Who are they using? What, what do they feel about the product they're getting from them? What kind of attention are you getting from them? And I think that's that's an important part too, because if you, if you are handling a lot of my finances, I need to be able to speak to someone when I have questions

Leaha Crawford 21:06
and say, not just not just the automation, exactly, just automation.

Lamont Fitts 21:10
And I think that's key, that you have someone that that will go over these things with you and give you the information you need, fill in the gaps and educate you where you don't understand these things, because a lot of business owners, whatever they do, is that that's, that's what their expertise is in. It's not always necessarily the financials of the business, but it's so important of a business owner to know those facts and those figures, because that's what keeps your business healthy. And don't always trust your bookkeeper to be in charge of all of that. For you, you have to. It's your responsibility as a business owner to know your financials, because I've seen over the years, over the many years, not even just in this bank, but other banks I've worked for, that is where the sometimes that's the main threat to a business is when they have someone in there doing their books, and you're not paying attention, and then all of a sudden, you know money is missing. And so that's why I always stress, yeah, if you Yes, if you have a good bookkeeper and let them do their thing, let them do their job, but you have to monitor your finances. As the business owner,

Leaha Crawford 22:21
I'm a proponent for that. Read your bank statements. Read your bank statements, look at your financial statements, and when you get the hang of it, it's really not as daunting as it may seem, you know. But I also watch a lot of entrepreneurs create a web,

Leaha Crawford 22:37
multiple LLCs, multiple bank accounts, multiple lines. I mean, just they got stuff right and trying to pull the string to get it organized. No, because it is, it really is. It's pulling the string because that's why I like doing taxes, because of the puzzle. But it's pulling a string and separating everything to put it together to do a tax return. Because, you know, I hear it all the time, I'm set up an LLC, okay, well, it's just you and somebody else. Well, no, it's just me. Well, I got four LLCs. Okay, so are they funded? Are they operating? You know, so it's all of those things too, that I see regularly.

Julian Rosado 23:18
Are you guys seeing increase in businesses over over time,

Lamont Fitts 23:25
in the increase in what way different

Julian Rosado 23:27
sectors, like more construction, business, more tech businesses over time,

Lamont Fitts 23:32
it changes with the times. It really does, and it changes, especially in this city. The city has been big on growth, big on construction through the years. So construction, land development has always been big in the city. But then, you know, we've had points in time where the real estate market is not quite the same construction, new construction is going down. So you have to, you know, you have, you have to look at the overall health of the economy, where the position of where your market is at that time, especially here in Las Vegas, it's very important to be in tune with what's going on in the city, because, you know, those are your customers one way or another, those the citizens of the city are your customers.

Julian Rosado 24:18
Then you find yourself catering the tools for this person, right? Yeah, yeah,

Keith Jackson 24:23
exactly one thing you'll find consistent here in Las Vegas is you'll see a legal lawyer billboard every Oh, just about every corner we

Julian Rosado 24:32
I know, when I first got here, I was like, is there that many accidents here?

Leaha Crawford 24:39
I see that in other cities as well, though, and be in major cities, I see that a lot of majors, mostly

Julian Rosado 24:44
like, if you're in an accident, that's it. If you're in an accident, like nothing else,

Keith Jackson 24:51
yeah, because of the claim, yeah, always at the top.

Leaha Crawford 24:56
Okay, I love it. Well, y'all as always, I really appreciate you coming. Can you give your contact information one more time?

Keith Jackson 25:02
Keith Jackson, Western alliance bank, 702-268-2048 that's 702-268-2048

Lamont Fitts 25:11
and Lamont. Lamont fits Western alliance bank, 702-252-6304

Leaha Crawford 25:17
All right, y'all so until next week, when we come back on. Oh. I also want to talk about we are. We're having a class coming up. So we have a bookkeeping class for more information, 702-382-5737,

Leaha Crawford 25:30
we're doing a live bookkeeping we're doing a live bookkeeping class, and we're also doing a professional the personality test, professional assessments all day class, 70238257377023825737,

Leaha Crawford 25:48
and we want to talk more about that in upcoming weeks, but we wanted to start an offering, to have different offerings, because what we're finding is to learn, knowing how to budget, understanding the snowball method to get that paid off, and to talk about the lines of credit is for business owners, and then talk about strategy on how you plan to pay them back, and what do you need to do, and then conversations you may need to have. So thank you for listening to us. You are listening to growth and grace. I'm Leah Crawford,

Julian Rosado 26:15
this is Julian Rosado. That's the first time that you said that you know what was supposed to do it every year,

Leaha Crawford 26:19
every 20 I know, I know, but the conversation was good and it was flowing. So, you know, we got to let it go. All right, y'all until next week. Peace and blessings. Bye.

Transcribed by https://otter.ai