Quote Originally Posted by Kevin Henry-Seacoast View Post
Adeel,

Have you considered an asset based line of credit or factoring? Using either tool for working capital is much better as they are revolving facilities. Term loans van be a good tool, but they are not revolving and the borrower must be a good shepard of capital.

The percentage of straight WC deals that qualify for ABLOCs and Factoring are less than 5% in our pipeline. Besides continuously riding factoring companies for month end statements to show what our true compensation is an exercise in futility. There is no transparency and nearly everyone quits paying in a few months. That's my experience and one main reasons why I don't push factoring anymore.

Non-SBA backed working capital loans would be a god send. Especially given that 50% of them will qualify for a loan consolidation from the SBA after the TIB hurdle is overcome.