Creative Financing Solutions through a Working Capital Lender

In the world of credit, every institution has a different risk appetite and set of parameters in which it operates. Given how broad and diverse the market universe is, it would be difficult to find a single bank with the ability to offer a product to match the need of every given borrower as it travels through the normal life cycle of a business. Although some banks have hundreds of different products, programs, and services, the financing needs of every borrower are different. From the smallest bank in town, to the largest bank in the world, we all have our limits.

Today, there are more regulations than ever. The amount of competition in our space is profound. The evolution of financial technology firms has taken the marketplace by storm. It often feels difficult to manage time between new and existing borrowers. What does my prospect pipeline look like? What can I do to hear “Yes” more often from the credit committee?

Have you ever been frustrated trying to service a customer that doesn’t quite fit? At VCF, we see this situation all the time. Our firm focuses on providing the best financial solution to our prospects and we often encounter situations where a prospect can be better served with traditional bank financing. When VCF comes across a prospect that may be better suited for traditional financing, we call on our bank partners with a referral.

A Traditional C&I Lender’s Best Resource

We are in this business to serve the marketplace. We believe that business owners are true American Heroes, and if we don’t have the right product for them, we know someone to call who can help. Through partnerships and collaboration with VCF, we have been able to help many banks by extending the size of their “credit box”. As credit standards continue to evolve and sometimes tighten, a strong relationship with an asset based lender can be a traditional C&I Lender’s best resource.

We can partner in many ways. Contact us today to learn how.

Creative, Collaborative Financial Solutions

Just recently, VCF made a deal happen through the strength of its relationship with a bank partner. The Chief Credit Officer of a regional bank called VCF to ask for some guidance on how to safely structure a credit he really liked. He was lacking the internal tools to make the credit an acceptable pass for his institution; he just couldn’t get home on the opportunity. The company, a distributor that sells through an online retailer, had inventory housed in hundreds of warehouses across the country. VCF was able to stretch the boundaries and offer an inventory-only loan. The loan was participated by the regional bank, increasing its loan portfolio and putting another asset on balance sheet, and just as importantly providing the borrower with a financing solution rather than a “No”. In less than one year, the borrower graduated back to a traditional bank financing arrangement.

Ancillary Products

VCF has strategically placed itself in the middle of the credit spectrum between classic factors and traditional banks. As thousands of middle-market businesses face economic and fundamental business challenges, VCF has products engineered to make the challenges less daunting for both the borrower and the banker. There is no better way to build a relationship with an existing borrower or new prospect than to have a menu of VCF’s ancillary products in your back pocket to help broaden your credit appetite.

Since our firm began over 20 years ago, we have provided financing for over 500 businesses thanks to our team of ABL experts, symbiotic partnerships, and time-tested underwriting policies. We always recommend traditional bank financing as the borrower’s first choice. We know our place in the market, understand your strengths, and are here to help you serve the overall marketplace.

If you would like to learn more about the specifics of how Virginia Commercial Finance can help you broaden your credit box, please give us a call today at 804-897-1200.