We can’t speak for the credit department but we can be fairly certain you don’t want to receive that call asking for a meet from the relationship manager… who is likely nervously smiling at the other end! Though ‘Special loans’ may be an unlikely scenario, it is a real drain on the business and can be a bit of a roulette whether you can weather it or not, if it comes to this of course. Options for your clients? Of course there are, YES…AND it’s to bridge the borrower to stabilize their balance sheet once again. Many times our clients are asking for a ‘stop gap’ option while they are refreshing their business model and, well… we love that!
Niche lenders offer more flexible financing programs than typical institutions do; subordinate on many assets and, forgiveness periods, interest only…extended/deferred terms, and if that’s not enough, even design effective financing ‘Sales’ tools to grow the troubled borrowers business. Extending your AR terms are not a Sales tool these borrowers need right now but if we can leverage financing tools to grow your clients Sales regardless of Service or Merchandise offering, you’ve navigated your client very effectively – the value add you can attest too!
Asset Based Lenders vary in terms of critical key elements to a borrower:
Ease of modelling to clients needs
Do they finance ‘all’ chattels on the balance sheets – Real Estate too?
Varying rates per Asset class/category
Varying Loan to Value per asset class
Credit quality – including CRA issues are financeable, not just 650 or better
Quick underwriting decisions
Do they offer Revolvers? Term loans suitable to client’s seasonal sales and forecast?
True Bridge financing and minimum terms
International clients – AR globally
Credible and professional underwriting, pointed at the clients cash flow needs
Additionally, you may be able to extend support via new ‘Sales’ alternative programs to grow your clients business – Sales aids to increase sales leveraging; lease programs privately designed, renewables offering longer term loans (Where you actually see merit to the plan), SaaS financing (i.e. recurring revenues) etc..
Business professionals are focused on their business as we are. We develop and expand our business as lenders seek us out to leverage their funds all the time. We only work with credible and minimum size funds – no one-off’s and only those that have a successful history.
Originating professional financing programs. Our 13 years are our testament to this practice.
Greg is a business financing advisor, accredited in commercial financing and mortgage’s.
email@example.com 905 302 4171