Saturday, November 29, 2014

2015 Federal Holidays

Federal law (5 U.S.C. 6103) establishes the following public holidays for Federal employees. Please note that most Federal employees work on a Monday through Friday schedule. For these employees, when a holiday falls on a nonworkday -- Saturday or Sunday -- the holiday usually is observed on Monday (if the holiday falls on Sunday) or Friday (if the holiday falls on Saturday).

Thursday, January 1New Year’s Day
Monday, January 19Birthday of Martin Luther King, Jr.
Monday, February 16*Washington’s Birthday
Monday, May 25Memorial Day
Friday, July 3**Independence Day
Monday, September 7Labor Day
Monday, October 12Columbus Day
Wednesday, November 11Veterans Day
Thursday, November 26Thanksgiving Day
Friday, December 25Christmas Day
* This holiday is designated as "Washington’s Birthday" in section 6103(a) of title 5 of the United States Code, which is the law that specifies holidays for Federal employees. Though other institutions such as state and local governments and private businesses may use other names, it is our policy to always refer to holidays by the names designated in the law.
** July 4, 2015 (the legal public holiday for Independence Day), falls on a Saturday. For most Federal employees, Friday, July 3, will be treated as a holiday for pay and leave purposes. (See 5 U.S.C. 6103(b).)

Sunday, August 31, 2014

Keith Gilabert, "Social Security Garnished by Old Student Loans"

When co-signing for your loved ones student loan keep in mind that the loan is now your responsibility.  Often times co-signers do not believe they will be bothered by a defaulted student loan.  If the loan is issued by the Department of Education it is now considered federal debt that will stay active for up to 20 years.

Here some facts you need to know:

  • In 2013 156,000 Americans social security went towards paying old student loans.
  • It's never a good idea to co-sign for a loved one's loan.
  • When you co-sign for a loan you assume 100% responsibility.
  • Private debt collectors cannot garnish your Social Security.
  • The Federal Government can only garnish Social Security not your personal IRA.
  • Government must give you 180 days notice before commencing garnishment.
  • Maximum amount of garnishment is capped at $750.00 per month or 15% of disposable income.
  • Seek an Income Based Repayment Plan from Department of Education, this could reduce the amount you owe to $0.00.
Here is additional information on student debt.

Friday, August 22, 2014

Keith Gilabert, "Funding your Payroll when Contracting with the Federal Government"

By Keith Gilabert

One of the biggest challenges a new company first encounters is funding payroll on a government contract.  When a business first captures a contract with the government it could take anywhere from 30-45 days before you can get paid.

Often times the funding could take longer than 30-45 days following the submission of your first invoice.  If the contract specifically states you need a receiving report it could take the government office 2-3 weeks to submit the report and then the government finance office could take another 2-4 weeks to cut the check.  That is almost 2 months without getting paid. 

What makes government contracts so lucrative is the size.  No enterprise spends more money than the United States Government.  The profit margins on average are between 5-7%, but the average contract is $150,000.00, so if you can secure 2-3 contracts per month you will have a very profitable firm.  The problem is you will be out $150k waiting 2 months to get paid.  A way to work through this is by getting payroll financing.
The government requires that all Invoices must be submitted on the 1st of the month. But your first invoice cannot be submitted until you’ve had 2 payrolls and in most cases, payroll is made on the 15th and the 30th of the month. 
You should be aware that there are exceptions to the length of time it takes for payroll. Things can happen that may hold-up the payment process. I’ve seen invoices get hung up in the system to anywhere from 90-180 days from the submission of your first invoice, depending upon the cause for the hold-up.  This is rare but it does happen.
Be prepared to wait it out in the beginning and have the financing in place to keep you and your employees afloat. You may find that you have to wait a full 5 payrolls before finally getting paid. When contracting for the government, you want to fully understand what you’re getting into and you want to ensure that you have the right lender to fund your contracting project(s).
Choosing the wrong lender could lead to untimely problems for both you and the lender, because lenders who are not familiar with government policies regarding this type of funding typically end up a thing of the past.
Exceptions that Could Cause Slow Payment
These are a few problems that could arise causing slow payroll funding for government contractors:
·         A Contractor Not Invoicing Correctly
·         A Lost Invoice
·         Misdirected Payment
·         Payment Office Relocation
·         Depleted Funding
·         Redirected Funding
The most prevalent reason for slow payment is the failure on the part of the contractor to submit their invoice correctly according to the contract. When taking all of these slow payment factors into consideration, it’s important to know that these problems very rarely affect commercial contractors.
Lender Problems when Slow Payment Occurs
Choosing a lender that is not experienced in dealing with the federal government could lead to financial distress for both you and the lender. This is because the lender expects to receive payment in an allocated amount of time.
If payment is held up due to an invoice issue or any of the other reasons listed above, the lender suffers a financial loss and it could also affect future funding for the contractor by the lender. This then has a domino effect and could harm the contractor’s relationship with the government client if the money is not there to complete a project.

When a project is not completed on time the contractor will suffer a low rating from the government which will affect your ability to attain any future projects.

Choosing an Appropriate Lender
When you need to select a lender to fund a government contracting project, you want to make sure to select a lender that is familiar with government payroll funding. This is not a cut-and-dry process. There is a lot of paperwork involved and government regulation to take into consideration.
During the lender selection process, you need assistance. Seeking out the assistance of an expert who can help you connect with an appropriate lender will eliminate future problems and ensure that all of the required paperwork is in order for timely payment.
To learn more information regards to funding for government contractor, contact us today.

Monday, June 2, 2014

Bitcoin is a Pure Commodity and will continue to Rise, according to Venture Capital Partner Keith Gilabert

Keith Gilabert of Fina V Capital says, “Bitcoin has several advantages over other commodity trades, primarily that Bitcoin cannot be shorted and the speculation behind the digital currency is funded by real buyers.”

Fina V Capital has been bullish on Bitcoin (BTC) since November of 2013, with a target price for the digital currency soaring to $5,000.00 per coin.  The President of Fina V Capital Keith Gilabert stated, “Our target price is based on the demand we see from hedge funds and the decentralizing of third world currencies.” 

Gilabert states, “Bitcoin cannot be shorted like traditional currencies you can trade today.  I can open an account with Forex and short any currency but I can’t do that with Bitcoin.  So when you examine the possibility of where this currency can go in price it is much higher than other types of trading instruments due to the digital currency does not have overhead resistance.”

Winklevoss Capital  $11 million investment in Bitcoin is now worth over $60 million.  They are now in the process of getting regulatory approval for Winklevoss Bitcoin Trust exchange traded fund (ETF), which is currently awaiting approval and will trade on the Nasdaq.

Another high profile investor is Michael Novogratz of Fortress Investment Group, who stated, “the smartest guys in the room” many are beginning to turn their attention towards bitcoin.

“Bitcoin continues to develop and currently it is still a volatile trading instrument with risk, but I do expect the volatility to decline as governments around the world impose restrictions,” according to Gilabert.

Fina VC reports the current environment for Bitcoin is positive.  The digital currency survived the implosion of Mt. Gox the third largest Bitcoin exchange which collapsed because of a $450 million theft.  This has not deterred Venture Capital investors from pouring over $100 million in start-ups this year alone.  “These start-ups have learned from the mistakes of Mt. Gox and are providing a safer trading environment,” according to Gilabert 

Last week Dish Network with 14 million customers joined Overstock .com and Virgin America in accepting Bitcoin.  Gil Luria an analyst with Wedbush Securities said, “This is a mainstream company with mainstream leadership that’s decided to embrace Bitcoin and what Bitcoin technology offers.”

Gilabert states, “because Bitcoin is a pure commodity based on supply and demand, we expect for every $100 million invested in Bitcoin reserves the price will increase by about 20%.  Until you have the ability to short the currency the upside is substantial.”

Trading Risk
All trades include substantial risk of loss.  You should therefore carefully consider whether such trading is suitable for you in light of your financial condition.  In considering whether a trade is suitable you should consult with your financial advisor or broker.  Fina V Capital does not offer trading advice on securities and should note that trading instruments mentioned are published based on what we find of financial interest to the public. THEREFORE, NO RESPONSIBILITY IS ASSUMED WITH RESPECT TO ANY SUCH STATEMENT, NOR WITH RESPECT TO ANY EXPRESSION OF OPINION HEREIN CONTAINED

About Fina V Capital
Fina V Capital serves entrepreneurs by providing less dilutive, more flexible forms of capital. We provide senior and subordinated term loans in the $1 million to $20 million range to emerging businesses backed by venture capital and private equity firms.  Target clients range from emerging growth companies led by dedicated entrepreneurs to late-state, established companies seeking cash-flow for expansion.  We give our clients access to our contacts of Fortune 500 companies which will add diversity to their product lines and help fuel growth.  There are less than a dozen consulting firms worldwide that can offer this level of service.