Progress Billing / Medical / Retail – Not for Us. Here’s Why.
Celtic Capital is a business-to-business lender – to those that perform a service or ship products; when the work has been completed. We tend to shy away from industries where billing is conditional (progress billing). The issue with progress billing is that if a contract is unable to be completed, the receivables we’ve financed are often called into question. Progress billing is often used in the construction industry and most contracts have language in them (i.e. customers can charge back costs) that could wipe out billing owed and preclude us from being paid.
Another industry in which we do not lend is the medical industry (as it relates to health care-related receivables). Billing to insurance companies has to go through the parameters of its policies and we don’t know what will ultimately get paid. We will lend, however, to nurse staffing companies which are paid by hospitals, and to medical device companies where products are manufactured and shipped. These types of companies are different in that there isn’t any insurance company involvement.
Lastly, we do not operate in the retail sector as we do no consumer lending; we’re business-to-business only.
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 mhafner@celticcapital.com, or visit us at www.celticcapital.com.