Just How Flexible Are eCapital's Alternative Lending Solutions?
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Fact-checked by: Bruce Sayer
Retaining flexibility when you borrow funds is a vital component of a company’s financial structure. Ready access to working capital and the ability to self-direct funds allows the business to execute a strategic plan and respond to growth opportunities. The financial covenants associated with traditional bank financing are restrictive in nature and tend to limit a borrower’s ability to stretch and grow their business. To be more agile and responsive to market conditions, businesses need the freedom to deploy funds as needed without having their lender constantly monitor and audit fiscal performance. Businesses looking for the freedom to run their business, their way need the flexible benefits of alternative lending.
What are the flexible benefits of alternative lending?
The flexible benefits of alternative lending start with faster, easier qualification and a higher loan approval rate than bank financing. Leveraging online tools, advanced technologies, and industry expertise, alternative lenders streamline underwriting and lending processes to accelerate the speed of funding. Alternative lenders can also provide flexible repayment schedules allowing businesses to coordinate loan compensation with billing cycles to maximize cash flow management. Businesses that align their capital needs with a trusted alternative lender become more agile, resolve cash flow issues, and have greater capacity to expand operations and grow the business.
For companies seeking the flexible advantages of alternative lending, the challenge is knowing how to recognize the best lender to be your trusted financial partner.
What is a trusted alternative lender?
A resilient business is one with sufficient capital to support current operations and fund future growth. An alternative lender worthy of trust will deliver uninterrupted cash flow you can count on throughout the many varied challenges and complexities of business. An alternative lender capable of delivering on these expectations will be innovative, dedicated to customer service, and provide flexible alternative lending terms.
How do eCapital’s flexible alternative lending services stack up?
eCapital is built on a history of industry-leading innovation, superior customer service, and flexible funding solutions tailored to meet customers’ capital requirements. Our technology team continues to develop advanced technology platforms to provide clients with more control and faster access to their funds. A dedicated account manager oversees funding processes and communicates with the client to ensure regular, reliable funding and a positive customer experience.
eCapital’s mission is to empower companies by accelerating their access to capital.
Access to more money: Using a high percentage of net orderly liquidation values to calculate terms, eCapital’s ABL financing provides elevated opening balances. Our invoice factoring products feature industry-high advance rates with the additional benefits of 90-day recourse periods and industry-low factoring rates. More capital equals more flexibility.
Access to faster funding: Quick, easy qualification and onboarding of new clients lead to first funding within days of application. Account receivables are processed without delay for our factoring clients to ensure funds are transferred, and capital is accessible when needed. Developing innovative technology, eCapital continues to elevate industry standards for fast delivery of capital funding. Faster access to capital makes your company more agile.
Access to lending solutions with less hassle: Funding requests, monitoring of account transactions, balances and credit limits, reporting, and more are easily managed via a robust online account management portal. A dedicated account manager coordinates submissions, approvals, and transactions to ensure seamless funding without delay or hassle. Our technology team continues to develop unified systems to streamline services for faster, easier access to capital. All of this adds up to hassle-free financing solutions and enhanced capital management efficiency. Leveraging increased efficiency allows companies to improve profitability.
Access to funds with no restrictive covenants: eCapital’s funding agreements are void of restrictive financial covenants that could impede your ability to stretch resources. Business owners have the autonomy to direct funds in whatever way best meets their needs. It’s all designed to promote growth and help your company succeed. Your success is our success.
Alternative lending solutions with no surprises: eCapital’s alternative lending agreements are free of convoluted legal jargon. Terms, conditions, and costs are clearly documented in straightforward language. Trust starts at the beginning.
These flexible benefits are further enhanced by the specific advantages offered with our ABL financing and invoice factoring solutions. Depending on the circumstances and capital requirements of the client, eCapital will recommend the alternative lending solution best suited to meet your company’s capital requirements.
Just how flexible are eCapital’s alternative lending solutions?
eCapital provides two types of alternative lending solutions:
Although invoice factoring is a specific form of ABL, it has product and service distinctions that separate it from the broader category. Let’s take a closer look at eCapital’s flexible features of these two alternative lending solutions:
The flexibility of eCapital’s asset based lending
To qualify for traditional bank lending, the borrowing company’s operations are evaluated, and its future cash flow is projected. The focus is on the company’s financial performance and its ability to pay back the debt. In contrast, asset-based loans are assessed on the quality of the collateral offered up for the loan – qualification is much easier!
Asset based lending is a powerful alternative to conventional loans and lines of credit. It can turn assets into working capital to invest back into your company. ABL can provide the capital required to take advantage of opportunities or turn your business around with a loan secured by your inventory, machinery, equipment, or real estate.
The more capital resources at your disposal, the more flexible your business becomes. eCapital’s ABL financing features high opening balances:
- Inventory: Up to 85% of net orderly liquidation value.
- Machinery and equipment: Up to 85% of net orderly liquidation value.
- Real estate: Up to 75% of fair market value.
eCapital leverages your assets to finance growth, purchase new equipment, fund acquisitions, and turnaround situations, cash in on supplier discounts, increase purchasing power or prepare for seasonal demands.
The flexibility of eCapital’s invoice factoring
Cash inflow is the lifeblood of your business to support operations, payroll, inventory, paying bills, and to cover overhead. Invoice factoring is a mainstream alternative lending solution that allows a business to obtain immediate capital based on the future income attributed to accounts receivables. This accelerated access to working capital provides a valuable service to companies that operate in industries where it takes a long time to convert receivables to cash, and to companies that are growing rapidly. The more flexible the features, terms and conditions of the factoring arrangement, the more valuable the service.
eCapital provides highly flexible invoice factoring services tailored to meet the exact needs of our client companies to manage risk, strengthen customer perceptions, and fuel growth.
Managing risk:
eCapital provides both recourse and non-recourse factoring to provide a choice of cost-effective and risk-mitigating factoring solutions.
Recourse factoring is the lower-cost option because you remain liable for all unpaid invoices by your clients. If your clients fail to pay their invoices, your company would be obligated to buy back the invoice. Recourse factoring is the better choice for clients with a good customer mix of credit-worthy customers as it is the most cost-effective.
Non-recourse factoring is like recourse factoring but with an added layer of bad debt protection. If the debtor (your company’s customer) does not pay the invoice by the end of the recourse period, eCapital will be obligated to absorb the loss (some restrictions apply). If your customer mix includes debtors with diminished credit scores and less than stellar payment histories, you may want to consider non-recourse factoring as the better option. Non-recourse factoring is more expensive than recourse factoring. Still, the additional expense could be worth it to ensure that your business’s cash flow is shielded from damage in the event of customers’ defaults.
Managing customer perception:
Under normal circumstances, a factoring company will notify customers of clients (debtors) that their invoice payments are to be paid to an alternative lender (the factor). This in known as Notification factoring. However, in some circumstances, companies want to keep their funding sources low profile and hidden from their customer base. eCapital can manage this need with non-notification factoring.
Non-notification factoring is an arrangement in that the customer (debtor) is not notified, nor made aware that the client is factoring invoices. Instead, the customer’s paperwork and communication are made as if they were coming from the client.
Managing growth:
Growing your business requires ever-increasing access to capital. eCapital keeps pace with your funding needs. As we develop history and confidence with your customers, our forward-thinking team provides the flexibility to push your credit limits higher. When the volume of invoices submitted for funding increases, we proportionally increase your credit limit. This service feature is a prime benefit to companies with an active growth strategy.
Tailored alternative lending services to meet your exact needs
eCapital is a customer-centric organization dedicated to supporting the business success of our clients with flexible alternative lending solutions tailored to your exact requirements. Traditional lenders go by the book, eCapital provides out-of-the-box solutions to support our clients’ growth strategies. If it makes business sense eCapital is behind you all the way with flexible alternative lending solutions.
eCapital’s innovative approach to business financing is strongly endorsed by our customers:
“There were no ratio calculations or strict black-and-white underwriting guidelines. eCapital has been nimble and expedient to meet our funding needs.”
Medical Staffing Agency
California
“We consider eCapital as an extension of our business. They are our financial division and a trusted business partner”
Healthcare Business Owner
Maryland
“Do I consider eCapital a valued financial partner – 100% I do! If challenging business opportunities come up, we figure it out and make it happen. ”
Staffing Agency Business Owner
Chicago
eCapital – a trusted alternative lender
Since 2006, eCapital has been providing flexible alternative lending solutions to client companies needing the confidence of having a trusted financial partner. Our customer base continues to grow as our reputation for dedicated service and forward-thinking alternative lending solutions to even the most complex situations endures.
For more information about eCapital and how your company can benefit from flexible, tailored alternative lending solutions, visit eCapital.com.
ABOUT eCapital
Since 2006, eCapital has been on a mission to change the way small to medium sized businesses access the funding they need to reach their goals. We know that to survive and thrive, businesses need financial flexibility to quickly respond to challenges and take advantage of opportunities, all in real time. Companies today need innovation guided by experience to unlock the potential of their assets to give better, faster access to the capital they require.
We’ve answered the call and have built a team of over 600 experts in asset evaluation, batch processing, customer support and fintech solutions. Together, we have created a funding model that features rapid approvals and processing, 24/7 access to funds and the freedom to use the money wherever and whenever it’s needed. This is the future of business funding, and it’s available today, at eCapital.
eCapital Corp
eCapital Corp. is committed to supporting small and middle-market companies in the United States, Canada, and the UK by accelerating their access to capital through financial solutions like invoice factoring, factoring lines of credit, asset-based lending and equipment refinancing. Headquartered in Miami, Florida, eCapital is an innovative leader in providing flexible, customized cash flow to businesses. For more information about eCapital, visit eCapital.com.