Banks vs Factors
If you’re a smaller company looking for help managing your accounts receivable, a commercial factor can be the solution to ensure you have the capital to reach new levels of success.by Ryan Kendrick, Senior Vice President - Portfolio Management
We’ve all seen the banker stereotype in a multitude of movies: giant, costly, and ornate buildings that
house surly bank managers and loan officers whose default answers to most questions is a firm “no.”
While this stereotype is of course over the top and a broad generalization, it reflects the difficulties the
banking industry faces when it comes to lending out capital. Government regulators and bank
shareholders require banks to perform extreme levels of due diligence when lending out money. This is
why, for example, if you’re a business that has less than two years of tax returns, is experiencing a
working capital crunch due to recent growth, or needs a lending decision made quickly, acquiring
financing from a bank can be a difficult or impossible path.
I recently watched one of those “Mega Yacht” shows, featuring $100 million yachts cruising around the
world. One of these yachts contained a garage that housed a smaller luxury boat the owner would use
to cruise into port or sightsee in areas where the larger yacht couldn’t fit. Carrying this story into the
finance world, due to their structure, banks aren’t the most nimble or agile solution for tricky financial
situations. A nimbler solution, such as factoring, can often step in and provide creative financing
solutions that otherwise wouldn’t be available.
Whether you are a newer company with less than two years of financial performance, an established
company facing unprecedented growth and cash flow needs, or you’re a smaller company looking for
help managing your accounts receivable, a commercial factor can be the solution to ensure you have the
capital to reach new levels of success.
Please reach out to us at Pavestone Capital and we’d be happy to answer your questions, look into your
specific financing needs and develop a solution that works for you.
(855) 621-3996 – email@example.com