Business Cash

Bank Factoring

The Benefits of Outsourcing Bank Factoring

The nature of bank lending practices often puts bankers in the position of having to turn down a business loan application – even from a current client – because the client’s balance sheet is overextended, it does not have any further available collateral to increase its line of credit, or for other reasons.

Often, bank clients may wish to use invoice or receivables factoring as a way to raise additional cash for working capital, business expansion, or investment in new equipment.

While some banks offer factoring services, that requires the bank to invest a lot of resources in a specialized type of financing operation, necessitating staff experienced in analyzing the company issuing the receivables, in monitoring the receivables portfolio, in collections and other activities. Because of these requirements, the bank may not be able to earn a sufficient profit on the factoring business to justify this investment. Indeed, over the years, many banks that have in the past provided clients with factoring services, have eventually exited the business because of the specialized expertise and additional personnel required to profitably run such an operation.

A Better Solution: Collaborating with an Experienced Factoring Service Provider

There is another way to go. The banker can refer the client to an experienced and highly competent factoring company. One that will collaborate with the bank to provide the client the extra funding it needs, with the bank retaining the relationship with its banking customer.

For a bank that does not provide factoring internally – that includes perhaps most commercial banks – this outsourcing solution makes business sense. It gets the job done for the client, preserves the bank’s resources for its core lending activities, earns the bank a positive return through the referral and collaboration, and maintains a good relationship with the client.

Go with is a long-established and highly reputable factoring firm. This provides outsourced factoring services for many banks across the country so that the bankers can meet the complete banking needs of their customers. This is great without the burdens of having additional expertise and staff required to run a profitable factoring operation.

That’s what we do for the bank. We provide a complete outsource factoring capability so that you can refer your long-standing clients to us with confidence that we will deliver quality factoring services, and treat your customers with care, concern, and respect. is not a banking business. We will not compete with you for your customers. The way we work with bankers is the way we work will all of our factoring clients – with integrity and the desire to maintain high-level long-term relationships.

The bottom line for a banker: When your client has exhausted its ability to borrow along traditional bank lending standards, you can refer them to Especially if they are looking for a quick, reliable, and experienced factoring capabilities. We will work with you to provide the client with the service that they have come to expect from your financial institution. That way, you can maintain a strong long-term relationship with them.

Get a funding today using bank factoring! Call 866-598-4295 or use the fast, safe & secure online funding application.

Other Business Cash Articles:

Understanding Factoring Fees Why hide from the facts Working Capital from an Invoice Factoring Company is more expensive...

Understanding Factoring Rates If you are considering utilizing Invoice Factoring to fund your B2B or B2G sales growth...

Rating: 5.0/5. From 2 votes.