Corporate factoring focuses on non-bank financial products, catering to companies that might not meet the criteria set by traditional banks.
National banks typically prioritize borrowers with high earnings, excellent credit histories, solid balance sheets, and established debt service ratios.
Consequently, obtaining a bank loan can be a lengthy and difficult process for many corporate borrowers. If approved, the ongoing audits and financial requirements can create additional challenges for the company. create instability for the company.
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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