The Day a Borrower Chose Staying with Celtic Capital Over a Bank

Most business owners assume they will move their financing to a bank once they qualify for a lower interest rate. Recently, however, we had a borrower do the opposite. Despite having the opportunity to refinance at a lower rate with a bank, the owner chose to stay with Celtic Capital. Here’s their story:

In 2024, Celtic Capital acquired a loan from the asset-based lending group of a bank. The borrower was a strong company with consistent profitability and solid performance. It was a quality credit by any standard.

About ten months into our relationship, the owner contacted us and let us know that at renewal, the company planned to move the credit facility to a bank. That’s not unusual. Many businesses naturally want to explore lower-cost financing as they grow.

Within two weeks of the loan renewal, the bank contacted us requesting a payoff letter. They explained that if their loan process wasn’t completed in time, the borrower might need a short extension from us. We asked the bank to keep us informed.

Then something unexpected happened.

Before any transition was completed, the owner called again, this time with a different request.

He asked if it would be possible for the company to remain with Celtic Capital instead of moving to the bank.

What Changed?

As the owner worked through the bank’s onboarding and approval process, he found the experience far more complicated and time-consuming than expected.

Questions multiplied. Internal approvals took time. Decisions required committee reviews. Even routine matters felt slower and more bureaucratic.

The owner summed it up simply:

“If it’s like this now, what’s it going to be like going forward?”

He continued by pointing out something that often gets overlooked in financing decisions:

With Celtic Capital, he had always been able to speak directly with decision-makers, resolve day-to-day issues quickly, and move forward without layers of approvals or delays.

In his words:

“I never had issues with Celtic Capital. Things were handled quickly and easily. I want to stay.”

Why Lending Experience Matters as Much as Rate

This borrower was very bankable and represented a sizable relationship. Yet the owner ultimately chose to remain with a lender that may not have had the lowest rate.

Why?

Because the value of speed, accessibility, and certainty outweighed a modest difference in pricing.

For business owners, financing shouldn’t just be about the cost of capital. It’s also about how efficiently that capital can be accessed and managed as your company grows.

Consider the operational realities many businesses face:

• Opportunities that require quick funding decisions.
• Inventory or equipment purchases that can’t wait weeks for approval.
• Cash flow fluctuations that require immediate lender communication.
• Unexpected issues that need practical solutions, not prolonged internal reviews.

When these situations arise, the responsiveness and flexibility of your lender can be just as, if not more, important than the interest rate on the loan.

Key Factors Business Owners Should Evaluate in a Lender

When selecting a lending partner, it’s wise to evaluate more than just the cost of borrowing. Consider questions such as:

1. Access to Decision-Makers
Can you speak directly with the people who approve credit decisions, or must everything pass through layers of committees?

2. Speed of Execution
How quickly can the lender respond when opportunities or challenges arise?

3. Operational Flexibility
Is the lender able to structure financing around your business realities, or are they restricted by rigid internal policies?

4. Relationship Continuity
Will you work with the same team over time, or will your loan be handed off through multiple departments?

5. Problem-Solving Mindset
Does the lender focus on solutions when issues arise, or simply point to policy limitations?

The True Cost of Slow Financing

In many cases, the hidden cost of financing delays can exceed the savings from a lower interest rate.

A missed growth opportunity, delayed inventory purchase, or slow response to a market change can have a far greater impact on profitability than a small difference in loan pricing.

That’s why experienced business owners increasingly view financing as a strategic partnership, not just a commodity transaction.

Interest rate will always be an important consideration when choosing a lender, but it should rarely be the only one.

The right lending partner provides more than capital. They provide accessibility, speed, flexibility, and confidence that decisions can be made when your business needs them most.

As this borrower discovered firsthand, the ease of working with Celtic Capital was worth far more than a slightly lower rate.

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.