Factoring for Community Banks
Say yes to the customers you are turning away. Keep them for the life of their business.
You own the relationship and the asset. We handle underwriting, documentation, servicing and portfolio management. A full 50/50 partnership, booked in your bank’s name, live in about 30 days.
How It Works
You originate from the customers already walking through your door
We underwrite, document, verify and service the facility
The asset books in your bank’s name, on your balance sheet
True 50/50 partnership on both risk and reward
Core Features
In Your Name, On Your Books
The facility belongs to the bank. Your customer never leaves your relationship and never meets a third party who wants to take it from you. We do the work behind it and stay out of the front of it.
Operators, Not a Software Vendor
Our team built and ran factoring divisions inside banks for more than a decade before we ever ran one outside of them. We know what your credit committee will ask, because we have sat on that side of the table and answered it.
Live in About 30 Days
No platform to license. No division to staff. No policies to write from scratch. One setup fee and you are booking deals inside of a month.
Stop Losing Customers at the Bottom of the Credit Box
A business owner has banked with you for ten years. They start a company. They come to you first. And you have to tell them no, come back when you have two years of financials. So they go to an MCA, or a broker, or a bank three towns over. That is the customer this program is built to keep.
1
Say Yes Earlier
Take the deal you would decline today. Underwrite the collateral instead of the balance sheet. The customer gets funded and stays yours.
2
Incubate
Teach them to be a bankable customer while you fund them. Clean financials. Real reporting. Profitability targets. You watch the collateral perform in real time, every invoice, every payment.
3
Graduate Them
Factoring to an asset based line. Asset based line to a conventional line of credit. Same bank, same officer, same relationship, from their first invoice to their last.
It runs the other direction too. When a line of credit customer slips and your examiners want them watched closer, you can move them into a factoring facility, rehab them, and never lose the relationship.
Why Choose BRS?
Fee Income Without New Overhead
Building this yourself means a division manager, a credit manager, a salesperson, software, legal documentation and a policy build. Half a million a year before your first dollar goes out the door. There is not a faster way to add fee income than putting our back room behind your name.
Character First Underwriting
Industry leading portfolio management standards. Daily asset monitoring. Weekly KPI reporting. Verification that is actually verification. Our default rates run in line with what a bank already carries on its C&I book.
Weekly KPI reporting
A Relationship Tool, Not a Liquidation
Relationship is the first word out of every community banker’s mouth, and it is one of our six non-negotiables. If we cannot build the relationship, it is not a deal. That is not marketing language here. It is an underwriting standard.
Half a Deal, More Revenue
Run the numbers on a customer you already have. Half of a factoring facility earns your bank more than the whole of a conventional line on the same relationship. Your outstandings go up. Your fee income goes up. And the loan you were going to decline becomes an asset you own half of instead of a referral you gave away.
You are not buying a product. You are participating in deals, at 50 percent, with the people who underwrite them.
60%
Nearly 60% of U.S. small business loans under $1 million are made by community banks
45,000
Nearly 45,000 community bank locations nationwide
1 in 5
One in five U.S. counties has a community bank as its only physical banking presence
Who We Work With
Bank CEOs
- Looking to grow fee income without adding a division
- Want to keep customers through their full life cycle
- Ready to move faster than a build allows
Chief Credit Officers
- Want collateral based lending with real monitoring
- Need loss rates that hold up in committee and in exam
- Looking for expertise, not software
Workout Officers
- Have relationships worth rehabilitating instead of exiting
- Want a landing place for credits that no longer fit the line
- Need daily visibility into collateral performance
Factoring Frequently
Asked Questions
Whose asset is it?
Yours. The facility is booked in your bank’s name and sits on your balance sheet. We participate at 50 percent and we do the work.
How is this different from buying factoring software?
Software gives you a system and a bill. It does not give you underwriting, verification discipline, portfolio monitoring, or anyone to call when a general contractor stops paying. We are a partner, not a license.
What does it cost to get started?
A setup fee and about thirty days. Compare that to staffing a division, buying a platform and building your legal documentation, which runs well into six figures annually before you fund your first deal.
What are the loss rates?
Our default rates over time run in line with what banks carry on C&I lending. The difference is where the risk sits. You are lending against verified receivables you monitor daily, not against a balance sheet you see quarterly.
What happens when the portfolio gets big enough to run ourselves?
You buy us out. After the portfolio reaches the size where your own staff makes sense, the whole thing belongs to you. We have always said that out loud, because the alternative is a vendor relationship you cannot leave.
Will this pass an exam
This is C&I lending, underwritten against commercial receivables, with daily collateral monitoring and full audit trails. We build the policies and procedures with you before the first deal goes on the books.
How long does the process take?
Setup runs about a month. The conversation before it usually runs longer, and that is fine. We have been at this since 1988 and we would rather you take the time to get comfortable.
Ready to Say Yes More Often?
Let’s talk about what this looks like inside your bank, with your customers and your credit box.