Hey DF,

Most banks today are inundated working their current customers through the PPP process. In the meantime there are several companies that I have spoken to that have lines with banks that are not providing enough liquidity during this crisis. All have approached their banks for line increases an have been denied or get no answer. Right now smart business owners and advisors to those companies are seeking alternatives to their smaller LOCs an SBA facilities so they can keep pace with liquidity needed and in some cases demands from customers.

Example: Right now I a proposing a factoring facility for a specialty food manufacturer/distributor that sells to grocery store chains and some big box stores. The Company has a small line and their bank is not willing to increase their line. AR sits at $2.2Mil and growing quickly. The bank LOC is $500K. That being said, the company is starving for liquidity to keep pace.

We intend to offer a $3Mil facility that will certainly help with their current day to day needs and help with demand from customers. We intend to close this quickly.

This is one example of many sitting on my desk.

Best,

KH