Asset Based Lending | The Difference Between Bank and Non-Bank Financing

Bank And Non-Bank Financing

What is The Difference Between a Bank Loan and Non-Bank Finance?

The difference between bank financing and non-bank financing is simply the qualifying process - lending criteria and the long uphill struggle of dealing with red tape and a mountain of paperwork requirements.

FDIC Banks' focus is on borrowers with high earnings, excellent credit history, strong balance sheet and a predetermined debt service ratios.

Non-bank asset based lenders do not have the restrictions imposed to banks by regulators and therefore allowing for flexibility throughout the qualifying process. A process that can help companies when they are unable to qualify under the requirements of a traditional bank line, or borrowers that have been turned-down because of stringent bank lending criteria, including certain borrowers with high leverage, negative net worth, recent losses and those faced with fast growth/expansion needs.

A non-bank lender looks at the overall merits of the company, including the company's business model, receivables diversification, management capabilities and abilities to generate eligible sales.

Is your company refinancing, expanding or restructuring? Please don't hesitate to contact us 24/7. One of our ABL managers will get back to you shortly.