Published in Birmingham Magazine
By Niki Spears

Business Profile
Working Capital Overnight
Marc Porter has prospered as a financial problem solver. His Porter Capital Corporation provides cash-crunched companies with the necessary means.

Marc Porter was on a flight from Dallas, Texas returning to Birmingham in 1991 when an article in an airline magazine caught his attention. The piece outlined a unique form of asset-based and accounts receivable financing that provided businesses with quick access to working capital. Intrigued by the concept and curious as to whether or not it had caught on in the business community, Porter decided to investigate.

He found that the idea had barely pecked its way out of the eggshell. There were no such enterprises at the time in the Birmingham area, only three in Atlanta, and just a handful scattered across the country. He became excited about launching such a venture in the Magic City to fill what he perceived to be a need for this type of financial service.

Porter founded Porter Capital Corporation to provide working capital to companies when more traditional forms of financial assistance are not readily available. The business is based on the premise that companies can experience a cash crunch when faced with rapid or unexpected growth or during periods of expansion or economic slowdown. Porter sought to provide financial services to companies with solid business concepts, but without the assets, infrastructure, and established track record that banks require to secure a loan.

"Our business is fairly simple," Porter states. "We serve as financial problem solvers known for being able to dig a little deeper than banks with a more creative approach. We receive numerous referrals from banks and accounting firms who have clients that may need a little special attention and require ready capital, for example, to take advantage of a business opportunity, purchase additional materials, or hire additional workers. We give business owners control by helping them raise capital when they need it without giving up equity, losing control of the business, or putting the company in debt."

While this creative approach to accounts receivable financing was virtually unknown in the South in 1991, the idea has quickly caught on. Porter has played a key role in educating the business community on the benefits and advantages of this different form of lending.

Quickly developing a reputation for highly creative financing expertise and innovative financial solutions, Porter Capital became the popular choice for a wide variety of businesses when more traditional forms of financing were not available or when applications through channels to the appropriate loan officers and approvers.

That growth and success have been impressive. In just over a decade, Porter Capital has grown to become one of Alabama's largest privately-held businesses with annual revenue for 2003 expected to reach $115 to $150 million. The company, which began with three employees only 12 years ago, now lists 31 at its headquarters located in downtown Birmingham's warehouse and loft district on First Avenue North. Additional offices are located in New York City and Ridgefield, Connecticut.

That success also led to two recent expansions that have vaulted the company to its position as Alabama's largest commercial lender outside of banks. Porter launched Porter Bridge Loan Company in 1994 as a direct bridge lender providing financial assistance ranging from $100,000 to $5 million to corporations. The short-term, asset-based funding provides an excellent alternative to conventional bank loans for companies taking advantage of time-sensitive transactions in real estate, public offerings, new business start-ups, or crucial repair work.
The second new venture, CapitalPartners Leasing, was founded in 2001 and leases machinery and equipment to businesses throughout the Southeast.

"Marc recognized a shortage in this region of specialists in equipment leasing and financing, and he deter¬mined to fill it," says Monte Smith, the head of CapitalPartners Leasing. "Leasing as opposed to purchasing provides a great number of tax benefits to a company. And our greatest advantage is the speed with which we can react to a company's needs. The people who phone us speak directly with the decision makers. We don't have to forward information and applications through channels to the appropriate loan officers and approvers. We can offer solutions much faster than banks and traditional financial institutions, often responding in 24 hours. We're able to mix and match assets, and recommend a wide variety of financial products that can make the deal work."

Smith's 15 years in commercial lending and banking were instrumental in placing CapitalPartners Leasing in the number 17 position of Birmingham's fastest growing companies in 2002.

Marc Porter is fortunate to have a family member as another key player in his businesses. His nephew, Ron Williamson, had been a fundraiser for a political action committee in Washington, D.C before being asked to join his uncle in launching Porter Capital. Williamson brought with him the people skills necessary to market the concept and the company to manufacturers, wholesalers, distribu¬tors, and service providers who make up the majority of the firm's clients.

Together, they closed a number of very impressive lending packages:
• $2.7 million for CitiStorage, Inc of Brooklyn, New York
• $1.5 million for Simply Lite Foods of New York, New York
• $750,000 for N & R Printing of College Park, Georgia
• $525,000 for Gruppo Intermoda of New York, New York
• $600,000 for Optical Options of Tampa, Florida
• $350,000 for Campus Designs of Birmingham, Alabama

John Shank of accounting firm Barfield, Murphy, Shank & Smith, P.C. has first hand knowledge of the capabilities of Porter Capital. "We are not only Porter Capital's accounting firm, but we have referred a number of our clients to them over the years," Shank says. "I have watched Porter Capital grow from a new start-up to one of Alabama's most successful medium-sized companies."

Most recently, Porter's team founded Porter Secured Capital in May, 2003 to create a participatory fund for asset-based lending. Since its inception, the fund has grown to $3 million and is expected to top $25 million by the end of the year.

Referrals from clients, probably the sincerest form of flattery for any business, account for a large portion of Porter Capital's business.

"We take great pride in that fact," Marc Porter notes. "This business is not just about making a sale. We've helped a number of companies determine the best path to take regarding urgent financial needs, but always with an eye towards the future."

Porter's team is also proud of their civic involvement and efforts to polish the city's image. They contribute to a number of charitable events and civic organizations, including the donation of baseball shoes and T-shirts to student athletes at area high schools through the Birmingham Athletic Partnership.

The growth and success of the companies under the Porter umbrella are especially remarkable in light of the fact that Marc Porter and his talented team of professionals have made such an impressive mark in alternative financing solutions—in a city that is considered to be among the top five banking communities in the country.