Corporate factoring specializes in non-bank commercial financial products, attracting companies that would not qualify under national bank lending standards.
National banks would focus on borrowers with high earnings, excellent credit histories, strong balance sheets, and predetermined debt service ratios.
As a result, obtaining a bank loan for a business can be a long and difficult process for many corporate borrowers.
NON-BANK LENDERS CAN DO WHAT SOME BANKS CAN NOT
Non-bank lenders can consider borrowers with:
- High leverage
- Negative net worth
- Recent losses
- Fast growth or expansion needs
Under traditional lending guidelines, these borrowers would not qualify for traditional bank finance.
Non-bank lenders, in determining a potential borrower's lending criteria, would look at:
- The company's business model
- Good diversification within the receivables
- Basic management capabilities
- The ability to generate eligible sales
For more information, please submit this SHORT FORM. The affiliate office that handles your area will contact you shortly.
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