Commercial Bankers: Given COVID, Where Are Your Marginal Clients Now?

With inflation an issue and an economy that may take a dip in the fourth quarter once COVID spending is behind us, now is a good time to begin assessing your marginal clients’ current situations. Start asking yourself:

  • Having been rescued by PPP money and EIDL, are these businesses turning around or are they still in trouble?
  • When I back out the PPP money, how are they doing operationally?
  • Are they doing okay only because of government assistance?
  • Have they fixed anything operationally that got them into trouble in the first place?

If a business is still trending negatively, maybe Celtic Capital should house it for a year and send it back to you when it’s in better shape. Remember, it will be easier to get them out now, before things get worse.

If a client has an EIDL, be aware that the process of subordinating that loan can take weeks and even months. The sooner you act, the better for all; and the sooner you’ll get the client back…and in better shape than you’re seeing now.

The same goes for turndowns. Take the deposits, we’ll take the credit relationship and send the company back to you when you want it. It’s a good way to start and keep a pipeline of business coming to you.

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 $5 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, or visit us at