Creative Financing Insights for Commercial Bankers
In 39 years of lending, I’ve learned that the most uncomfortable conversation a commercial banker has isn’t with a struggling client. It’s with a thriving one.
A business owner walks in with a problem that sounds like success: revenues doubled last year, a major new customer came on board, and they need a credit facility three times the size of what you approved eighteen months ago. They’re not in trouble. They’re winning. And yet the underwriting math doesn’t work — not yet. Their history doesn’t support the exposure. Your credit committee wants another year of financials.
I’ve sat in that chair. I know the conversation. And I know what happens when the banker can’t give a thriving business owner what they need: they leave. Sometimes they find it somewhere else. Sometimes they don’t find it at all, and the growth stalls at the exact moment it could have compounded.
The Factoring Bridge for Fast-Growing Clients
Invoice factoring is uniquely suited to hypergrowth scenarios because the facility grows automatically with the business. As a company generates more invoices, more capital becomes available — without a new credit approval, without an annual review, without a committee. The collateral expands in lockstep with the business.
A fast-growing business that isn’t yet bankable at the level they need can use factoring to fund their growth, build their financial track record, and arrive at your institution in twelve to twenty-four months with the history to support a full commercial credit relationship.
We think of this explicitly as a bridge back to banking. We help clients understand their financials, coach them on what banks will want to see, and hold the line on their cash flow while they build the record that makes them bankable at scale.
A Referral That Comes Back
The referrals I value most from banking colleagues are the ones where they say: “This client isn’t ready for us yet, but they will be. Can you help them get there?” A client you refer to us today may be your borrower tomorrow. That’s not a figure of speech. It’s a pattern we see regularly.
Warm regards,
Shaun Rovai
CEO, Asset Commercial Credit™ | 39 Years in Commercial Lending
(916) 614-1850 | www.assetcc.com | srovai@assetcc.com
CA Finance Lender/Broker License #607-1896
Have a client who doesn’t fit your credit box? Send me their name: srovai@assetcc.com
