It’s not uncommon for us to get calls from companies that need business financing but have been declined by banks. Many of this prospects consider their experience of trying to get bank financing to be a sour experience. “They don’t understand me. They have no idea how quickly my business can grow!” they complain. I am going to play devils advocate for a second and say that actually, many people don’t know how banks lend.  And if they understood how banks operated, most of these prospects wouldn’t have even bothered approaching a bank for business financing. Maybe it’s the bank’s fault for not making it clear…. perhaps.

Let’s start by looking at the typical factoring prospect. Many prospects have less than three years of operations, though some have more. A number of them have no hard assets such real estate or equipment either for the company or personally the owners. And Read more…