Financial Industry professionals including mortgage brokers, commercial real estate brokers, business brokers and financial planners are dealing with small business owners all the time. They will often see businesses that face gaps in cash flow and need some short-term financial help. Any transition in business, be it selling, moving, expansion, changes in partnership or owners, restructuring, or strategic financing and borrowing, can create additional strain on cash flow and the resources needed to continue to operate the business profitably. As a direct lender, Philmark is able to supplement conventional banking services to those clients where a conventional Bank line of credit cannot be implemented or simply is inadequate for the client’s needs. Philmark specializes in short-term financing as small as a few thousand dollars and as large as maximum commercial credit scores of the receivable allow. It is dependent on the credit worthiness of the businesse’s customers not so much the business itself.
Our services are targeted to those clients who fall outside of normal banking and full service conventional factoring parameters. Scenarios may include:
- Changes in ownership structure, buyouts or acquisitions.
- Any short-term ‘bulge’ financing requests that cannot be fully accommodated by the Bank
- Often includes borrowing clients who have exceeded their current line of credit or have invoices that do not fall within necessary margining criteria.
- Companies that are unproven, (less than 2 years old) or do not have current financial information available
- Companies who are in arrears with CCRA, GST, PST WCB etc.
- Companies; that given adequate financing, have the opportunity to expand their customer base and grow.
With the addition of Philmark’s services, companies often become more bankable, develop stronger balance sheets, increase their annual profits and grow to a size where long-term lenders may now consider a conventional accounts receivable margining program or an increase in any existing conventional Bank financing feasible.
Consider discussing the benefits of accounts receivable or trade financing when discussing new strategies with your business clients.