Bank Partnering Offers Solid Solutions

What are your options when you don’t want to lose an existing customer or the opportunity to work with a young and growing company?

The answer may be partnering. At Capital Associates, we work with hundreds of these types of companies, providing them with working capital and a variety or other accounts receivable, purchase order and inventory financing. As a commercial finance company specializing in these areas, we frequently partner with banks to develop financial solutions that meet the needs of bank customers.

Our relationship with banks is similar to relationships between minor league baseball teams and their major league counterparts. The rookies or young companies are referred to us for training, education and seasoning in preparation for an opportunity to move up to major banking institutions. In addition, seasoned companies that experience temporary financial needs are often referred to us so we can work with them through their challenges and they can return to a state of profitability, growth and bankability.

It is a win-win-win relationship. With a referral to Capital, banks retain their deposit customers and often all or a portion of their existing credit accommodations. Meanwhile, we supply the customer with working capital by financing their accounts receivable, providing advances against purchase orders and inventory, or a combination of two or more of Capital’s financial products. The customer ends up with cash to take advantage of trade discounts, remain current with existing vendors and the opportunity to continue growing.

Banks benefit from partnering because it helps them retain positive customer relations. Instead of turning customers away, they can turn them toward Capital Associates. Partnering is good for us because its one way we can serve a variety of clients and make a return on our investment. And, partnering helps companies facing transition, those working through temporary down turns, and young companies with great potential but no financial track record.

Consider partnering with Capital and let us be a valuable tool in maintaining and growing your loan portfolio.

back

back to top