When Will a Bank Take Me Back?

We’re often asked: “The pandemic led to my business losing money and my bank asked me out. When will the bank take me back?” Our answer is, “If you do …More

How to Turn Your Turndowns into Clients

Given the pandemic, you’re probably seeing many prospective business clients that are un-bankable. They may have suffered losses in 2020, gone through their PPP money or are finding their EIDL …More

PPP and EIDL’s Impact on Business

If you own or run a business, when you think about COVID’s effect on your business, the perspective is really about the effect of any PPP money you received and/or …More

A/R Turn Rate Never Lies. What’s Your Turn Rate Telling You?

Do you know the turnover rate of your receivables? You should. It’s one of the most important numbers to know because it tells you how long it’s taking your customers …More

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 …More

President’s Message (July 2021)

In January, I closed my Letter with, “Wishing everyone a better year.” We’re now halfway in and while Celtic Capital’s new business activity and number of proposals issued have improved, …More

What Asset Based Lenders (ABL) Look for Besides Collateral

Business owners often ask what lenders want in their relationships with borrowers. For Celtic Capital, it’s two things:

Good Communication
Timely and accurate reporting


Good communication because lenders need to understand what’s going …More

90 Day V. 30 Day Extensions

The Scenario:

A bank deal
The bank can’t assist anymore (company is either in trouble or growing too fast)
The bank asks the company out and gives it 30 days to exit
At the …More

Bank Payoff Hurdle Eliminated for EIDL Borrowers

An unexpected consequence of COVID’s effect on businesses this past year has been the challenge imposed on small, independent finance companies to bring on new deals. First there was PPP …More

A Fact-Based Approach to Asset Based Financing

FACT: You own a small business
FACT: Your business doesn’t qualify for bank financing or your bank has asked you to seek alternative financing
FACT: Asset based financing is a great solution …More

Equipment-Only V. CapEx Loans

At Celtic Capital, we make equipment-only loans on existing manufacturing equipment (and/or rolling stock) that’s company-owned and housed in its own facility. As we’re looking for the equipment to be …More

Business Owners: Bank Asks You Out. Now What?

When your bank asks you to exit, don’t panic. This may just be the best way to get your business back on track. And don’t ask for an extension. Prolonging …More

Commercial Bankers: For Maximum Recovery, Exit Deteriorating Deals Quickly

When banks look at a portfolio company, see it deteriorating and know it’s going to be asked out, the sooner, the better. Don’t prolong the inevitable, get in front of …More

Equipment Appraisals: How Much Could You Get?

Equipment appraisals can vary depending on the appraiser. And for a lender, who the appraiser is, is critical. Sometimes, we see appraisals from people we’ve never heard of and we …More

You Keep the Credit Line. We’ll Take the Equipment

Although we’re a full service shop, we also do equipment-only financing – appropriately evaluating equipment on the front end to, if needed, get out equitably on the back end.

If you’re …More

A Less Subjective Method of Inventory Valuation

Recently, we’ve fielded questions about how asset based lenders evaluate inventory. The following is an article we wrote a few years ago that’s still applicable today. The policy outlined is …More

How Secure Are You with Your Bank Financing?

If your business has been impacted by COVID, (regardless of whether or not you received PPP money) you should be talking with your bank. Show your banker 2020 year-end results …More

Are You Preparing Your Clients for a Bank Exit?

After almost a year of COVID, banks undoubtedly have a policy about how they’ll look at PPP money’s effect on their clients’ businesses. The issue is: if a business has …More

PPP Money Running Low; Now What?

Businesses received PPP money in April and May of 2020. Hopefully, those that truly needed the money to cover cash flow shortages did some accompanying cash flow planning to project …More

President’s Message (January 2021)

While 2020 is technically now history, its after-effects are still being felt. What a year it was and we’ve yet to catch our collective breath. As of the writing of …More

The Two Types of Borrowers You Don’t Want to Be

All too often, we find two categories of borrowers each of which actually hinder the growth and success of their businesses – most times, without the borrowers even realizing it. …More

Bank Participations

At Celtic Capital, we’re always open to the idea of participating with banks on deals; for a few reasons. From our point of view, participations are good for borrowers because …More

Equipment-Only Loans at Celtic Capital

We get many questions from business owners about our Equipment-Only Lending Program so we asked Mark Hafner, President and CEO of Celtic Capital, a series of questions to clarify the …More

6 Criteria To Analyze Business Loan Proposals

You own a business and for whatever reason, you’re unable to secure traditional bank financing. You’ve been referred to some alternative lenders and you have proposals from three of them. …More

Referring Clients to the Right ABL

As a referral source, especially a bank looking to exit a deal, it’s extremely important to have confidence in the asset based lender to whom you refer. It’s always best …More

PPP and the Importance of Cash Flow Planning

Part of the government’s COVID-19 stimulus package was the Paycheck Protection Program (PPP) – a loan designed to provide a direct incentive for small businesses to keep their workers on …More

President’s Message (July 2020)

In my January letter, I said we’d have “more of the same” this year. Well…we did…for two months. Obviously, COVID-19 was not something I could have predicted. The virus hit …More

A Short-Term Financing Solution When Banks Say “No”

Businesses have life cycles. They go through good time and bad times. During the bad times, many business owners find it difficult to get the financing they need from traditional …More

Reporting Structure is One of the Biggest Differences Between Banks and Asset Based Lenders

When bank clients are asked to leave the bank, sometimes business owners ask what the difference is between being with a bank versus an asset based lender. Besides the obvious …More

Long-Term Financing Tips for PPP Borrowers

Part of the government’s COVID-19 stimulus package is the Paycheck Protection Program (PPP) which is a loan designed to provide a direct incentive for small businesses to keep their workers …More

Once Out of the Coronavirus Crisis, Banks Will Tighten Up On Lending

As the recession deepens, and we get past the government-backed SBA lending program, banks will tighten up on lending; they always do during a recession. So if you own a …More

How Borrowers Are Affected By the Difference in Factoring Vs. Asset Based Lending

There is a difference between factoring and asset based lending and that difference can matter dramatically to the borrower. The following are the main ways in which typical factoring and …More

President’s Message (March 2020)

The heart of our business is the relationships we have with our referral sources – with you. While social distancing has necessitated that our Client Development Officers cancel and not …More

Top 5 Criteria To Choose a Lender

If you’re asked to exit your bank and move to an asset based lender, how do you know which asset based lender is right for your business? Just as lenders …More

Tips For Commercial Bankers To Mitigate Portfolio Risk

The tech bubble in 2000/2001 and the housing bubble in 2008 started those recessions. Who would have imagined that a virus could be the catalyst for the next recession; yet …More

The Benefits of Asset Based Lending in Terms of Imposing Forced Discipline

One thing former borrowers tell us is that while they may have resisted tight control reporting initially, they learned it imposed a discipline (a form of which) they continued when …More

Audits: Trust But Verify

Audits are an important part of any lender’s ongoing due diligence the main reason being that they verify how a business is doing and if the business is in compliance …More

A/R Turn

As an asset based lender, the biggest, single statistic we look at relative to an accounts receivable (A/R) loan is how the business’ customers are paying their invoices. That’s what …More

President’s Message (January 2020)

As I usually start my Letter with a recap of the prior year, there’s no reason to change course this year, so let’s take a look at 2019:

New business activity …More

Top 3 Reasons for Choosing Celtic Capital

We’re often asked why prospective clients (and referral sources) choose Celtic Capital over other asset based lenders. Here are a few of the reasons we know are of greatest importance …More

Lenders, Borrowers and Covenants

There are three kinds of covenants:

Affirmative (the borrower says, “I will do… this or that”)
Negative (the borrower says, “I won’t do… this or that”)

Most lenders impose financial covenants as a …More

When a Bank Hangs In with a Marginal Client, It May End Up Hanging Itself

Generally, when companies struggle with declining sales or increased losses, unless management clearly solves the underlying issue(s) and the business has turned the corner, problems will continue to mount. Vendors …More

Personal Guarantee vs. Validity Indemnification and Why Do Lenders Request Them?

With a personal guarantee, the lender can go after the signer for any loss, anytime, for any reason – not necessarily because of any fraudulent activity. If the collateral isn’t …More

Equipment-Only Loans at Celtic Capital

We get many questions about our Equipment-Only Lending Program so we asked Mark Hafner, President and CEO of Celtic Capital, a series of questions to clarify the lending parameters:

When will …More

President’s Message (July 2019)

The first half of the year was quite active for us. In fact, in terms of fundings, the first quarter was one of the most active in our recent past …More

Taking a Business to the Next Level – Part Two: The Importance of Loan Structure and Borrowing for Current Assets vs. Long-Term Assets

Many times, the entrepreneur who started the business is not a finance person. His/her expertise lies in sales or production. Successful business owners hire strong people in their weak areas …More

Taking a Business to the Next Level – Part One: Key Drivers

A business driver is a process or activity that drives operational and financial results and is vital for the continued success and growth of a business. Successful business owners know …More

The Value of Time in Making Business Decisions is Priceless…Or Is It?

Ever come to the disappointing realization that if you had acted on a problem sooner, you could have saved yourself a lot of money? Or worse yet, made a lot …More

It Pays to Look Beyond the Interest Rate to Find the Best Lender for Your Business Needs

For whatever reason, (broken covenants, losses) your bank asks you to find alternative financing for your business. The bank has also probably referred you to a few asset based lenders …More

Would You Trust an Admissions Cheater?

Michael Hiltzik’s column in the Los Angeles Times on Sunday, March 17th posed the question: “Would you trust an admissions cheater?” This was prompted by the college admissions scandal in …More

The Importance of Inventory Management

Inventory is oftentimes one of a company’s largest assets. It’s also, oftentimes, one the company’s least managed assets because it’s the most difficult to manage.

Purchase – built – shipped. The …More

Exiting a Credit Before the Business Gets in Further Trouble Is the Best Help You Can Give Your Struggling Client

An increasing interest rate market coupled with concerns about a looming recession will have a negative impact on small businesses; that’s a given. And that means that more and more …More

Cash Flow Planning is Perhaps The Most Important Tool for Small Businesses

Understanding the cash needs of your business and where cash is coming from is critical to running a successful business. When you don’t know what cash you have coming in, …More

President’s Message (January 2019)

It seems like I just wrote the 2018 President’s Message and here we are at the start of another new year. Let’s recap how we fared in 2018 and set …More

4th Quarter Tip for Increasing Your Bonus Potential

We’re well into October but there’s still time before the holidays to take a good, hard look at your portfolio and exit your marginal deals – clean house, so to …More

Loans Too Good to Be True, Usually Are

Many times, companies try to grow sales without adequate capital to support the up-front expense. This scenario inevitably causes a sense of desperation when payroll or some other critical expense …More

How Asset Based Lenders Evaluate a Deal

When you need to exit a client and want to refer them to an asset based lender, you might want to relay the following information as it will help …More

President’s Message (July 2018)

I mentioned in my January letter that we had plans to expand in the southeast this year. I’m pleased to report that we brought a new Client Development Officer on …More

Helping Exiting Clients Determine the Type of Alternative Financing Best for Their Businesses

The Differences Among Asset Based Lending, Factoring and Fintech
After the last recession, even after the economy began to improve, banks were still lending very conservatively. To fill that void, Fintech …More

What Bankers Should Tell Their Clients When Referring Them to an Asset Based Lender

Whether asking a client to exit the bank or if a credit request is not approved, we believe, when referring the relationship to an asset based lender, the direct, honest …More

Equipment-Only Financing

In case you hadn’t heard, Celtic Capital provides equipment-only financing. This is of great benefit to banks, other asset based lenders and factors because if they have a relationship with …More

Getting Back to Bank Financing

Financing Through an Asset Based Lender Instills Discipline in Businesses

Many small businesses (primarily those with less than $30M in revenue) are understaffed or have the wrong staff in their finance …More

President’s Message (January 2018)

For Celtic Capital, the first half of 2017 was pretty slow. The market was soft and we didn’t see many deals coming from banks. In addition, we lost two of …More

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