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“
ACCESS TO CAPITAL is the KEY to Your Company
’ s SUCCESS!
”

One of the most important jobs of a CEO running a small to medium sized business is to make sure the company acquires and maintains the proper working capital to operate and grow. Access to working capital is the “ LIFE
BLOOD ” of a company, especially when a business is either growing TOO RAPIDLY or having GROWING PAINS .
As the leader, it is your job to make sure your company has ACCESS TO CAPITAL, because being without could be the difference between FAILURE or SUCCESS . In my 20 years in finance, I ’ ve worked in almost every capacity in this industry other than taking a company public or trading stocks and bonds. In that time, I have watched many
CEOs stumble and fall when faced with the notion of needing to borrow money. Because most have a LIMITED knowledge of the capital markets, and virtually NO understanding of alternate forms of capital, they normally run straight to their BANK when in need of working capital. In the case of small and medium size businesses, that move typically and immediately puts their company in JEPORDY.
HERE ’ S WHY?: As someone who has spent 14 of my 20 years working for some of the largest commercial banks in the country, I have learned ONE undisputable FACT : “ Banks don ’ t lend money to START UPs, or companies growing too SLOW, or too FAST!
” A CEO that does not understand this SIMPLE FACT has just put their company ’ s OPPORTUITIES , GROWTH and FUTURE at RISK!
The best CEOs maintain a keen understanding of what ’ s available in the capital markets. They also maintain relationships with non-traditional lenders, and ALWAYS know where capital can be found when traditional banks say NO, or NOT NOW!
Over the entire life cycle of your company, the form of capital your business will need will continue to EVOLVE .
Understanding non-traditional and alternative forms of capital, will be KEY to your company's success. Most companies FAIL by chasing a bank for working capital, when the right financing partner at the time is NOT a BANK!
Knowing where to find alternative sources of capital, whether within the industry they serve, or from a non-bank financial institution operating in the open market, successful CEOs know how to find the working capital they need to GROW!
The BEST business leaders recognize how to find the RIGHT CAPITAL at the RIGHT STAGE of their company. As a business leader, the question you have to ask yourself is … DO YOU?

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Equity from Principals or Outside Sources
Mezzanine Debt
Factoring and PO Finance Companies
Action Capital (A/R Finance Company)
Specialty Debt (Leasing, SBA, etc)
Traditional Bank Debt
Extended Trade Terms
Normal Trade Terms
Highest Cost
Lowest Cost

Traditional Bank Line of Credit Accounts Receivable Based Line
Action Capital ’ s Credit Product!
Factoring
• Least expensive source of working capital • Cost is 14%-17% APR broken down into
5%-7% APR an interest cost and processing fee.
• Requires CPA prepared financials Example Prime + 2% plus 1% monthly fee showing historical profits and low debt to worth ratios…no startups or young on net amount borrowed.
• Internal financials statements required companies and/or tax returns
• Prefers hard assets like R/E or equipment • Only collateral taken is accounts as additional collateral receivable
• Can Be Lengthy Approval Process • Approval and closing in less than a week.
(3 weeks to several months) • Advance Rates 90% on A/R
• Advance Rates 70%-80% on A/R
• Advances against unbilled revenue
• Requires expensive independent onsite
• Companies with losses, customer audit prior to closing concentrations, tax liens, start-up, high or
• Attorney cost and closing fees slow growth and in bankruptcy are OK
• Annual contracts with commitment fees • Review credit quality of the company ’ s
• Additional cost for Lock Box and
Monitoring Service customers and require change of address notification
• Little or no verification on Invoices
• Limited knowledge of government receivables
• Requires Owner Guarantees
• No closing cost or long term contracts
• Little or no verification on individual invoices
• Free Lock Box Service
• Strong knowledge of the government market
• Requires Owner Guarantee
• Cost is 20-30% APR with a discount on the face amount of the invoice and a per diem on balance advanced
• Internal financials required and/or tax returns
• Only collateral taken is Accounts
Receivable
• Approval and closing in two weeks
• Advance Rates 90% on A/R
• Companies with losses, customer concentrations, tax liens, start-up, high or slow growth and in bankruptcy)
• Typically one year contract with minimum fees and out of pocket closing fees.
• Focus on each individual invoice with up front confirmation, stamping with notification stamp, mailing of invoice and collecting invoice. High notification level to customers .
• Knowledge of the government market varies based on the factoring company
• May or may not have Owner Guarantees

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Companies Without Assets like Real Estate, Land or Equipment
Companies that are Start Ups, Early Stage or High Growth
Large Customer Concentrations
Unusual Large Product Order
Company is consistently Beyond its Credit Terms with Banks & Vendors
Companies that are Constrained by Current Lender (Bank Won ’ t Increase Their Line of
Credit)
Companies that are in Turn Around Situations
Sudden Change in Financial Performance (Decreased Revenues or Recent Losses)
Companies in the Workout, Special or Criticized Asset Group within their Bank

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Services and Professional Services Firms
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Government Contractors
Distributors and Re-sellers
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Out of Favor Industries
(Trucking, Printing, Services to Real Estate or Construction Firms)
Companies looking for Supplier Diversity Opportunities

• Action Capital Corporation is one of the nation's largest and oldest independent finance companies.
• Founded in 1959 and headquartered in Atlanta, Georgia
• Strong leadership team with diverse backgrounds in investment, corporate and commercial banking
• We specialize in accounts receivable financing to US-based companies.
• We finance trade receivables from federal, state, and local government agencies, or large creditworthy businesses.
• We have expertise in serving all industries , including service companies, distributors, staffing, and manufacturers.

• Accounts Receivable based Lines of Credit up to $5,000,000
• Funding needs can start as low as $50,000 per month
• Advance Rates up to 90% against Billed A/R
• Advances Rates up to 85% against Earned and Unbilled A/R
• Competitive Rates and Fees charged on the Net Amount
Advanced

David Mitchell
Senior Vice President
Director of Marketing and Business Development
David@actioncapital.com
404-809-5419 Cell
Becky J. Cronister
President
Becky@actioncapital.com
Patrick A. Thom
Executive Vice President
Patrick@actioncapital.com
Phone: 404-524-3181/800-525-7767 Fax: 404-577-4880
230 Peachtree Street, Suite 910, Atlanta, Georgia, 30343 www.actioncapital.com

Mission
We provide a full range of services to members companies and clients to help them realize full-growth potential.
Vision
Grow exceptional companies in the
Intelligence, Healthcare, Aerospace &
Defense, Homeland Security and
Transportation & Logistics industry sectors, striving to benefit all stakeholders.

True North
Equities
True North
Consulting
VRMC
True North
Medical
MST
True North
Logistics
True North
Cyber
Welkins
True North
Legal
MSB

Business Development
•Clients are provided end-to-end business development support services aimed at developing and implementing growth opportunities.
Capture Management
•Clients are provided capture planning, gap analysis, win themes development, pricing support, red team reviews and several other targeted services to support an effective capture effort.
Proposal Review & Preparation
•Clients receive all required proposal support by our experienced proposal preparation teams. These teams provide all services necessary to ensure a fully compliant and competitive proposal.
Shared Services
•Management of all non-core support functions, enabling our clients to focus more time and money on revenue-producing activities.
Finance Support Services
•Full line of finance solutions, including full service payroll funding, asset based lending and lines of credit

End-to-end business development support services aimed at developing and implementing growth opportunities.
Service elements:
• Relationship Building
• Federal Business Readiness Assessment
• Solution Validation
• Go-to-Market Planning
• Sales Channel Development
• Thought Leadership
• Account Planning
• Pipeline Development and Maintenance
• Pre-RFP Support
• Opportunity Analysis and Validation
• Strategic Recruiting
Benefit from:
 Reduce barriers to entry
 Shorten sales cycles
 Industry knowledge transfer
Engage
Assess
Plan
Research
Why us?
 Decades of industry experience
 Over $1B in Federal sales captured
 Robust BD methods and infrastructure

Capture planning, gap analysis, win themes development, pricing support, red team reviews and several other targeted services to support an effective capture effort.
Service elements:
•Capture Plan Preparation
•Strategic Capture Recruiting
•Gap Analysis
•Competitive Analysis
•Teaming Strategy and Formation
•Call Plan Development
•Contract Vehicle Identification
•Win Themes Development
•Price-to-Win Analysis
•Bid & Proposal Planning
•Red Team Preparation and Facilitation
•Final Contract Negotiation Support
Benefit from:
 Higher win rates
 Proven lifecycle approach
 Decades of experience
Why us?
 Asset-based approach
 Repeatable processes
 We win

Clients receive expert support from our experienced proposal preparation teams. These teams provide all services necessary to ensure a fully compliant and highly competitive proposal.
Service elements:
• Compliance Matrix Development
• Proposal Plan Development
• Proposal Writing
• Proposal Editing
• Graphics Support
Benefit from:
 Reduce internal resource burden
 Increase proposal throughput
 Compliant, competitive proposals
Prewriting
Writing
Revising
Editing
Delivering
Why us?
 Experienced proposal team
 Asset-based approach
 Proven track record of success

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Management of all non-core support functions, enabling our clients to focus more time and money on revenueproducing activities.
Service elements:
Finance Support Services
IT Management
Back Office System Support
Expense Management
Timekeeping Management
Human Capital Management Support
True
North
Equities
Finance Support Services
IT Management
Back Office System Support
Expense Management
Timekeeping Management
Human Capital Management
Support
Portfolio
Companie s and
Clients
Benefit from:
 Re-focus resources on high value activities
 Scalable infrastructure
 Compliance with Federal laws and regulations
Why us?
 Decades of experience
 Ease of switch-over, use and visibility
 We understand the details

Clients receive expert support from our experienced finance support team. These teams provide all required services including payroll processing, financing and invoicing.
Service elements:
• Payroll Funding
• Asset Based Lending
• Factoring
• Lines of Credit
• Back Office Support
Benefit from:
 Reduce internal resource burden
 Efficient payroll processing
 Improved cash management
Payroll Processing
Financing
Invoicing
Why us?
 Experienced team
 Industry leading tools
 Proven track record of success

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Acquisition
◦ Valuation difficult to ascertain or greatly over-valued
◦ Weak support structures
◦ Founders/Leaders working on the wrong things
◦ Business development weak – always a goal, no concrete actions
◦ Little to no real pipeline
◦ Weak relationships – close teammates not real
◦ No writing talent
◦ Verify quals, document quals,
◦ Verify relationships
◦ More discipline needed on follow-ups and opportunities
◦ Operating agreements
◦ Employment agreements

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Acquisition
◦ Previous teammates
◦ Valuation
◦ Investors
◦ Equity
◦ Due diligence
◦ Integration process
◦ Synergy realization

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Operations, The Integration Process
◦ Legal
◦ Accounting
◦ Human resources
◦ Insurance/risk
◦ Business Development
◦ Marketing
◦ Contract Novation
◦ GSA
◦ Website
◦ Catalogs
◦ Pricing

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Operations
◦ Teammates – new, develop a network
◦ Contract vehicles
◦ Opportunities – aggressive pipeline development
◦ Refresh/Build new qualifications
◦ Diversify – enter new accounts
◦ Establish regular communications
◦ Develop budgets – Annual, Quarter & Monthly
◦ Get in the market – conferences, visits, teammates, strategy sessions
◦ Actually write & bid
◦ Drive valuation: revenue, EBITDA, backlog, qualifications, pipeline, leadership

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Operations
◦ Repair, strengthen relationships
◦ Reach out to big guys
◦ Pricing
◦ Overhead and G&A
◦ Cost control
◦ Accounts receivable
◦ Payment terms
◦ Banking relationships

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Selling the Company
◦ Goals of the sale:
 Capital raise
 Total acquisition
 IPO – Toronto Stock Exchange
 Maintain a share
◦ Investment Banks – smart money
◦ Confidential Information Memorandum (CIM)
◦ Presentation to the market
◦ Management calls – preparation, execution, follow-up
◦ Contacting customers
◦ Integration process

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Selling the Company
◦ Valuation
◦ Projections
◦ Revenue
◦ EBITDA
◦ Backlog
◦ Pipeline
◦ Leadership
◦ Intellectual Property – Patents
◦ Competitors
◦ Diversity of Portfolio

Bob Luby
Managing Director,
True North Equities
Tom Glisson
Managing Director,
True North Logistics
• Former VP of IBM Global Business Services, in charge of the
Public Sector Consulting Practice (1.18B+ in revenue)
• Retired Navy Captain (20 years)
• Naval Academy Graduate
• Robert.Luby@tru-nor.com
• Retired Army Lieutenant General (35 years)
• Former Director of Defense Logistics Agency ($17B annual budget)
• Former Partner and Managing Director at BearingPoint
Brian Cairns
Director,
True North Equities
Helen Thompson
Director of Operations,
True North Equities
• Former Deputy Chief of Staff and Founding Member of the
Department of Homeland Security (DHS)
• Former Director of DHS Business Development at IBM and
SAIC
• Former Deputy Secretary at the Commonwealth of PA,
Department of Community and Economic Development
• 30 years ’ experience in operations management for complex healthcare, public and private sector organizations
• Former Operations Manager for IBM ’ s 1,000-person Global
Business Services Public Sector Consulting Practice
• Helen.Thompson@tru-nor.com

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• Provides financing option when credit worthiness may be weaker than the quality of assets
• Often a less expensive path
Pros
Cons
• Often has covenants and minimum borrowing fees and unused fees

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• Provides flexibility
• Reduces expense since you only pay interest on the amount advanced
Pros
Cons
• Covenants - might limit the amount of money you can take of the business, might limit your growth

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• You can choose which invoices you want to send to the factor
• Fast turnaround
Pros
Cons
• Tends to be more expensive than other options
• Notice on the invoice

Allows you to use your accounts receivables to obtain funding to meet payroll expenses.
Benefits
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Saves companies time and money and helps meet payroll demands
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Flexible options grow with business demands
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Provides financial security
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Increases ability to bid on contracts you may not normally pursue
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Provides reporting
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Available to companies ranging from startup to well established businesses.
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Available to multiple service industries including:
 IT Consulting companies
 Staffing companies
 Intelligence analysts
 Engineering firms
 Security companies

For Startup to Well Established Companies
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Payroll funding with “ back office support ”
◦ Advance and fund up to 100% of payroll Benefits
◦ Funding of “ unbilled ” receivables
◦ Payroll processing via check, direct deposit or "paycard “
Tax Administration
◦ W2 or 1099 processing
◦ Withhold, remit and file all payroll Employee "self service" portal
Invoicing
• Frees up your time to grow your business and core activities
 Customizable Invoicing
 Accounts Receivable Management & Cash Application
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Real time reporting
Advancing profits weekly
• Improves cash flow
• Empowers you to be competitive

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◦ For companies in business for 2 years+ and annual sales volume in excess of $3MM
◦ Advance and fund up to 100% of payroll and 90% advance on invoicing
◦ Profits advanced weekly
◦ Funding of “ unbilled receivables ”
◦ Accounts Receivable
Management & Cash Application
◦ Real time reporting
Benefits
• Frees up your time to grow your business and core activities
• Improves cash flow
• Empowers you to be competitive

• Publicly traded financial services firm bank based out of New York City with offices in Washington, D.C.
• Established 1929
• 6.7 billion in assets
• Delivers complete line of commercial, business and consumer banking products and services
• Depository and cash management services
• Financing solutions

New York
Washington DC
310 Crossways Park Drive
Woodbury, NY 11797
1000 Connecticut Ave, NW, Suite 900
Washington DC., 20036
(516) 998-6000
Fax (516) 762-6588 rmocerino@snb.com
www.snb.com/payroll