Early Referrals Protect the Bank and Your Clients

When it comes to referring a client to an asset-based lender (ABL), timing isn’t just important, it’s everything. In today’s slower-moving market, clients are hesitating and deals are stalling. Banks often extend credit short-term (60–90 days), but these extensions can do more harm than good.

Here’s why:

• Clients are left without clear direction or access to working capital.
• Banks remain exposed with uncertain repayment.
• ABL lenders are left in limbo and can’t act until the client commits.

This no-man’s land scenario weakens options and increases risk, especially when a client is already under stress.

As a commercial banker, you often spot early signs when a client may no longer fit your credit profile. Covenant violations, seasonal cash flow issues, or upcoming renewals that may not be extended are critical moments. Identifying these inflection points early is key to ensuring a smooth transition for both the client and your bank.

The solution is early and proactive referrals. By introducing an ABL lender sooner, before stress turns into crisis, you give your client time to evaluate options, complete due diligence, and transition to a more flexible credit solution. You protect your bank’s position and preserve client goodwill.

Let’s work together to ensure your clients land safely with working capital in place and relationships intact.

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 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 celticcapital.com.