SALT LAKE CITY, Oct. 1, 2012 /PRNewswire/ — Celtic Bank Corporation has announced the introduction of a non-recourse factoring product for small and middle market business customers nationwide. Drawing on the Bank’s expertise in asset-based lending and underwriting small business credit risk, the product will be offered and serviced by the Bank’s Asset-Based Lending Division.
According to CEO Reese Howell Jr., “We are excited about the introduction of this new product to the marketplace. We feel like it is a strong complement to our asset-based and other small business loan programs. In addition, we have strong management and staff experience in the industry which will serve us well going forward.”
Non-recourse factoring entails the sale to and purchase of accounts receivable by the Bank at a discount. Under the arrangement, the Bank will accept an assignment of and assume the credit risk of approved accounts receivable.
Primary business candidates include customers in the consumer goods sectors who wish to effectively minimize or even eliminate bad debt losses, outsource back-office accounts receivable management, improve accounts receivable turnover, and increase access to working capital. Additional industries may include other manufacturing and distribution, temporary staffing, trucking and transportation, or even other factoring companies (Re-Factoring). Inventory financing is also available with this program.
About Celtic Bank:
Headquartered in Salt Lake City, Utah, Celtic Bank is a national leader (Top 15) in Small Business Administration loans and asset-based working capital lines of credit under the SBA Working Capital CAPLines program. Celtic Bank is an Equal Housing, SBA Preferred, and FHA Lender. Member FDIC.
Media Contact: Alfred Quinn
SOURCE Celtic Bank