Bank-ABL Synergy Drives Business Pipeline
Asset based lending (ABL) is one step removed from traditional banking in terms of the credit quality of borrowers. Many banks have ABL subsidiaries to handle those non-bankable businesses.
Banks without in-house ABL establish relationships with independent ABL companies and refer clients to them. Whether in-house or independent, working with an asset-based lender provides opportunities for both banks and asset-based lenders to push deals up and down. Banks continue to manage and develop the deposit and transactional side of the business while asset-based lenders provide the financing needed to help the business solve the issues that kept it from qualifying for bank financing.
Referrals for ABL don’t always have to be in a “company in trouble” scenario. Traditional bank loans often have fixed limits and terms while ABL scales a company’s assets thus providing the ability for a higher overall borrowing capacity. Rather than risking a good client’s need to look for a new bank that will provide a higher credit limit, bankers who refer that client to an asset-based lender for additional financing needed for growth or a new business opportunity, work in synergy to the benefit of all parties.
Banks and asset-based lenders are not in competition with each other nor do they overlap in services provided. Bankers who develop synergistic relationships with asset-based lenders can easily create and look forward to a pipeline of business for years to come.
About Celtic Capital
Companies looking for working capital to cover operating expenses, fund growth, increase buying power and take advantage of vendor discounts and rebates turn to Celtic Capital. With an appetite for the more complex transactions, Celtic Capital has a history of success in crafting creative, flexible asset based financing solutions from $500,000 to $8 million with no financial covenants.
As an independent lender, working with companies nationwide, Celtic Capital is willing and able to alter price and deal structure and expand lines of credit to handle its clients’ increased revenues; and when cash flow is an issue, will look toward providing an inventory facility to help offset lost cash flow.
If you know of, or are, a business in need of non-traditional financing, contact Mark Hafner at 800.742.0733 or mhafner@celticcapital.com, or visit us at www.celticcapital.com.