Bank financing is often the first choice for many small and mid-sized businesses. For these businesses that qualify, bank financing is great - offering low cost solutions tied to banking relationships. The problem, however, is that many applicants are being rejected by traditional banks, facing obstacles such as size, profitability, and years in business. Given limitations of national and community banks today, these options may not be the best initial solution for small businesses.
We discuss here why it's not always you - it could be them. However, non-bankable small businesses still need financing opportunities that are less onerous than online lenders such as Ondeck or Kabbage and more scalable than friends and family money.
Being non-bankable does not mean that a business cannot qualify for traditional funding down the line, but that they need assistance from an alternative capital provider in the near term - preferably one that can get them "Bank Ready."
There are a variety of alternative lenders for those who do not yet fit typical bank parameters. In addition to "Fintech" options, there are also Factors, Purchase Order Funding, Non-Bank Asset Based Lenders or Merchant Cash Advance companies. These other forms of capital work with companies that banks either cannot or will not work with. While they all provide funding, it is important for businesses to partner with the lender that can put them on the path towards traditional bank financing.
Understanding that bank debt is a business' long-term goal - a "plan A" - alternative lenders and non-bank debt solutions serve as the plan B. The key is to find a plan B who is incentivized to get your small business back to the bank. Certain asset-based lenders do just that, focusing on growth and building discipline to prepare clients for traditional bank financing.
Dwight Funding is an asset-based lender that specializes in industries such as consumer goods, business services, technology and manufacturing. Dwight's goal is to get clients to a bank by serving as more than just a lender.
We recognize that companies are looking to get "Bank Ready" and are comfortable being the B-plan to get them there.
Therefore, we act as a resource hub for our clients - providing expertise, networking, advice, and when the time is right, connections to our bank partners.
Dwight Funding looks to partner with great companies that are not yet Bank Ready by providing better working capital solutions. We seek to fill the gap that banks have left in the working capital space due to size, industry, profitability, or otherwise.
Book a call with Dwight Funding today or call us at 212.960.3750 to learn how we can help.