By Michelle Myers, SVP, Sales & Marketing at Faccorp International
Most of the conversation around tightening bank credit focuses on retrenchment — banks pulling back, credit boxes narrowing, fewer approvals. That’s real, but it’s only half the story. The more interesting part is the gap it leaves behind, and who’s positioned to fill it.
Falling Between the Cracks
There’s a group of businesses that can easily fall through that gap: too complex for an automated lending model, too small for large private credit funds, and outside a bank’s credit box, while still being fundamentally good businesses. Think startups, rapid-growth companies, businesses with customer concentration, foreign ownership, transitional credit situations, or companies that simply need time to become bankable.
These aren’t struggling businesses. They’re businesses that don’t fit neatly into anyone else’s underwriting model.
Where Good ABL Lenders Add Value
That gap is exactly where a good asset-based lender can make a real difference — not by trying to compete with huge pools of capital on price alone, but by competing on credit judgment, structure, accessibility, and execution. It takes a genuine understanding of a business’s assets and cash flow to structure financing for a company that doesn’t fit a standard model, and that’s a different skill than simply running an application through an automated approval process.
Not Competing With the Bank — Building Tomorrow’s Bank Customer
Importantly, this doesn’t have to put independent lenders and banks on opposite sides. A good ABL relationship can act as a bridge: it provides the working capital a company needs today, helps it grow, and strengthens its financial position over time — ultimately managing that borrower toward the point where it is bankable again.
That’s not competing with the bank. That’s building tomorrow’s bank customer.
Who We Work With
If your business is in that gap — too complex for automated underwriting, too small for institutional capital, but fundamentally sound — that’s exactly who we work with. Faccorp International structures asset-based lending and factoring solutions for lower middle market companies that don’t fit neatly inside somebody else’s box. Let’s talk about what your business needs.
