Compare Capital Solutions to a Bank or Traditional Line of Credit
| Important Issue/Variable | Bank Line of Credit | Capital Solutions A/R Financing |
| Ownership | Company keeps | Company keeps |
| Management | Company keeps | Company keeps |
| Cost | $$ | $$$ |
| Personal Guarantee | Required | Not required |
| Audits (your cost) | Required, at least once a year, usually twice | Not required |
| Line Growth | Subject to Credit Committee, not easy | No approval necessary |
| Who benefits from Upside growth of company | You do | You do |
| Lender's focus on |
Previous 2 years Financials Personal Credit |
Company's ability to produce invoices to credit worthy customers |
| Risk of your customers going Chapter 11 | Your risk | Capital Solutions' risk |
| Cost of Exit of program | Usually some early termination fees | No cost, no questions asked |
| Satisfaction Guarantee | None | Yes |
| Performance Covenants | Many: Financial, Profitable, Growth(if default occurs, your fees go up). Bank sometimes expects you to pay off the line once a year | None |
| Can program be changed to suit me? | No | Yes |
| Decision Taking: speed, contact person | Credit Committee, you are mostly dealing with clerical person | No committees, person with 'a brain' takes same-day decisions. |
Save money by dealing with the lender, not a broker. Find out how easy it is to qualify or contact us today and speak with one of our business financing executives to see how we can help you make your business grow.
