US Markets in green on Friday; Dow 30 up over 345 points, Nasdaq Composite, S&P 500 up nearly 1%

US Markets were trading in the green on Friday with Dow 30 trading at 30,678.80, up by 1.14%. While S&P 500 was trading at 3,701.66, up by 0.98% and Nasdaq Composite 10,690.60 was also up by 0.71 per cent

Twitter Facebook Linkedin
US Markets in green on Friday; Dow 30 up over 345 points, Nasdaq Composite, S&P 500 up nearly 1%
Earlier today, Indian stock markets ended the week on a winning note. It was the sixth straight gains for equity markets. Source: Reuters
US Markets were trading in the green on Friday with Dow 30 trading at 30,678.80, up by 345.25 points or1.14 per cent. While S&P 500 was trading at 3,701.66, up by 35.88 points or 0.98 per cent and Nasdaq Composite 10,690.60 was also up 75.75 points or 0.71 per cent. A Reuters report said that today’s strength was on the back of a report which said the Federal Reserve will likely debate on signaling plans for a smaller interest rate hike in December, reversing declines set off by social media firms after Snap Inc’s ad warning.

Source: Comex

Nasdaq Top Gainers and Losers

Source: Nasdaq

Earlier today, Indian stock markets ended the week on a winning note. It was the sixth straight gains for equity markets. The BSE Sensex ended at 59,307.15, up by 104.25 points or 0.18 per cent from the Thursday closing level. Meanwhile, the Nifty50 index closed at 17,590.00, higher by 26.05 points or 0.15 per cent. In the 30-share Sensex, 13 stocks gained while the remaining 17 ended on the losing side. In the 50-stock Nifty50, 21 stocks advanced while 29 declined.

The Mistake: Not Taking Advantage of Fashion To Engage Consumers

Fashion and design partnerships are one of the strongest opportunities being leveraged by brands to market products to those cutting edge trendsetters and influencers that closely follow – and lead – today’s fashion trends.Fashion partnerships result in an enhanced image and an overall sense of innovation and hipness to the brand. These partnerships are typically different enough to break through the clutter, gain consumer interest, attract press, and generate consumer buzz. In fact, fashion, like music, is globally one of the most popular categories in terms of online consumer interest as it too transcends culture and breaks down barriers.No longer are fashion events and content limited to fashion brands – today you see brands of all types leveraging fashion, ranging from title-owning Mercedes-Benz Fashion Week, Subway’s runway dress made out of wrappers, Moët & Chandon on the Golden Globes Red Carpet to Intel and HP’s multi-year long partnership with fashion-themed television series Project Runway.A fashion initiative has the ability to elevate the brand and provide the perception of appearing out-of-the box and cutting edge to consumers. It is important to remember that there needs to be a rhyme or reason behind the partnership. By looking at the core fundamentals of the brand’s objectives and messaging, a mutually beneficial campaign will result in success for both the brand and the partner when identifying the common ground in messaging.For savvy brands and marketers of all types, opportunities are available at a wide range of fee levels (read: very affordable to quite hefty) to create noteworthy partnerships that will get noticed by both media and consumers, while also providing content to significantly drive social media conversations. Brands no longer need to go to Paris to find success with fashion, and almost any brand can create a successful and sales-impacting organic partnership through one of these four platforms.• Partnering With Fashion EventsFashion event opportunities exist with large scale events, such as the “official” partnerships with Mercedes-Benz NY Fashion Week to smaller Fashion Week offshoots that are often just as press worthy and impactful, including runway shows and celebrity gifting lounges. There are fashion weeks held in cities all over the world, the most prominent in the U.S. being New York Fashion Week and Los Angeles Fashion Week held twice a year, in February and September. Also included in the fashion event category are fashion designer showcases held at locations year round or celebrity driven award shows where the red carpet is often the highlight of the night.Fashion events provide immense traffic and engagement in social media. Based on data gathered by Social Curation and Analytics company Curalate, it was found that during New York Fashion Week 2013, there were 100,000 related Twitter and Instagram shared by more than 33,000 unique users. On average, the top NYFW brand photos generated 37,448 interactions per photo, most of which were product-driven. Marketing campaigns are extremely effective when they take place in real-time, live at an event or location. Out of the 100K+ posts that drove the most engagement, 90% were taken on site at the NYFW.As an example of this social success, Harman-Kardon created a NY Fashion Week partnership 3 day event to launch their fashion-friendly white headphones, based on their ‘beautiful sound’ platform. During and following the event, the brand’s social media traffic increased by 970%, and they received over 19 million social media impressions and 370 million national press impressions.• Partnering with Fashion DesignersWhether brands want to establish themselves as risk-taking and groundbreaking, or more proven with long-standing character, custom alignments exist with fashion designers and events whose personality reflect those same valued traits. Celebrity and newly emerging designers offer opportunities to create endorsement partnerships and to liven up brand campaigns, trade events or event point of sale.• Partnering With Fashion TV SeriesFashion in Television is a constant theme, with series devoted to covering and showcasing fashion trends. Networks such as Lifetime (Project Runway), E! (Fashion Police), Bravo (Rachel Zoe), NBC (Access Hollywood, Extra) all offer sponsorship opportunities as well as options to integrate brands directly into the content. Even daily talk shows typically have a fashion segment, which brands can creatively become part of. Additionally, scripted series can provide the basic storylines of fashion similar to the previous hit Sex In The City format. The targeted viewer is typically the coveted female demographic, with an average age 25 to 49.Pilot Pen created a 4 month long digital partnership with NBC’s Fashion Star television series. A branded customized fashion trivia game was developed with a grand prize trip to NY Fashion Week, supported by ad units across the NBC platform along with the series website and print. Additionally social media drove conversations both from the show’s designers and the brand’s fan base. The partnership reached more than 14 million consumers, with website visits 184% over goal and sweepstakes entries 85% over goal.• Partnering With Fashion BloggersFashion bloggers provide a very strong platform to share brand fashion driven strategies, and can include consumer sampling and sweepstakes components.Once upon a time, New York Fashion Week was only for a very exclusive group consisting of the fashion elite and insiders. Today, largely with the help of fashion bloggers – “everyday” girls who have managed to become big time influencers – everything is much more accessible with wider public appeal. In fact, fashion – above technology, food, sports, travel – is one of the most popular blog categories, with 3 million Google searches a day, second only to music.The proper strategic alignment within the fashion world can elevate and solidify a brands image, while tapping into a following that is enthusiastic and eager to engage online. To create a partnership that is relevant and makes sense, it is important to work with industry experts who understand the landscape and what kind of opportunities are out there to identify and activate exactly how your brand can harmoniously and successfully partner with a fashion initiative.

Alternative Financing Vs. Venture Capital: Which Option Is Best for Boosting Working Capital?

There are several potential financing options available to cash-strapped businesses that need a healthy dose of working capital. A bank loan or line of credit is often the first option that owners think of – and for businesses that qualify, this may be the best option.

In today’s uncertain business, economic and regulatory environment, qualifying for a bank loan can be difficult – especially for start-up companies and those that have experienced any type of financial difficulty. Sometimes, owners of businesses that don’t qualify for a bank loan decide that seeking venture capital or bringing on equity investors are other viable options.

But are they really? While there are some potential benefits to bringing venture capital and so-called “angel” investors into your business, there are drawbacks as well. Unfortunately, owners sometimes don’t think about these drawbacks until the ink has dried on a contract with a venture capitalist or angel investor – and it’s too late to back out of the deal.

Different Types of Financing

One problem with bringing in equity investors to help provide a working capital boost is that working capital and equity are really two different types of financing.

Working capital – or the money that is used to pay business expenses incurred during the time lag until cash from sales (or accounts receivable) is collected – is short-term in nature, so it should be financed via a short-term financing tool. Equity, however, should generally be used to finance rapid growth, business expansion, acquisitions or the purchase of long-term assets, which are defined as assets that are repaid over more than one 12-month business cycle.

But the biggest drawback to bringing equity investors into your business is a potential loss of control. When you sell equity (or shares) in your business to venture capitalists or angels, you are giving up a percentage of ownership in your business, and you may be doing so at an inopportune time. With this dilution of ownership most often comes a loss of control over some or all of the most important business decisions that must be made.

Sometimes, owners are enticed to sell equity by the fact that there is little (if any) out-of-pocket expense. Unlike debt financing, you don’t usually pay interest with equity financing. The equity investor gains its return via the ownership stake gained in your business. But the long-term “cost” of selling equity is always much higher than the short-term cost of debt, in terms of both actual cash cost as well as soft costs like the loss of control and stewardship of your company and the potential future value of the ownership shares that are sold.

Alternative Financing Solutions

But what if your business needs working capital and you don’t qualify for a bank loan or line of credit? Alternative financing solutions are often appropriate for injecting working capital into businesses in this situation. Three of the most common types of alternative financing used by such businesses are:

1. Full-Service Factoring – Businesses sell outstanding accounts receivable on an ongoing basis to a commercial finance (or factoring) company at a discount. The factoring company then manages the receivable until it is paid. Factoring is a well-established and accepted method of temporary alternative finance that is especially well-suited for rapidly growing companies and those with customer concentrations.

2. Accounts Receivable (A/R) Financing – A/R financing is an ideal solution for companies that are not yet bankable but have a stable financial condition and a more diverse customer base. Here, the business provides details on all accounts receivable and pledges those assets as collateral. The proceeds of those receivables are sent to a lockbox while the finance company calculates a borrowing base to determine the amount the company can borrow. When the borrower needs money, it makes an advance request and the finance company advances money using a percentage of the accounts receivable.

3. Asset-Based Lending (ABL) – This is a credit facility secured by all of a company’s assets, which may include A/R, equipment and inventory. Unlike with factoring, the business continues to manage and collect its own receivables and submits collateral reports on an ongoing basis to the finance company, which will review and periodically audit the reports.

In addition to providing working capital and enabling owners to maintain business control, alternative financing may provide other benefits as well:

It’s easy to determine the exact cost of financing and obtain an increase.
Professional collateral management can be included depending on the facility type and the lender.
Real-time, online interactive reporting is often available.
It may provide the business with access to more capital.
It’s flexible – financing ebbs and flows with the business’ needs.
It’s important to note that there are some circumstances in which equity is a viable and attractive financing solution. This is especially true in cases of business expansion and acquisition and new product launches – these are capital needs that are not generally well suited to debt financing. However, equity is not usually the appropriate financing solution to solve a working capital problem or help plug a cash-flow gap.

A Precious Commodity

Remember that business equity is a precious commodity that should only be considered under the right circumstances and at the right time. When equity financing is sought, ideally this should be done at a time when the company has good growth prospects and a significant cash need for this growth. Ideally, majority ownership (and thus, absolute control) should remain with the company founder(s).

Alternative financing solutions like factoring, A/R financing and ABL can provide the working capital boost many cash-strapped businesses that don’t qualify for bank financing need – without diluting ownership and possibly giving up business control at an inopportune time for the owner. If and when these companies become bankable later, it’s often an easy transition to a traditional bank line of credit. Your banker may be able to refer you to a commercial finance company that can offer the right type of alternative financing solution for your particular situation.

Taking the time to understand all the different financing options available to your business, and the pros and cons of each, is the best way to make sure you choose the best option for your business. The use of alternative financing can help your company grow without diluting your ownership. After all, it’s your business – shouldn’t you keep as much of it as possible?