How Cash Flow Problems at Marketing Agencies Create AR Lending Opportunities for Community Banks
Marketing agencies often face a cash flow crunch. AR financing can help.
The Essential Guide to Adding an AR Financing Program to Your Community Bank
Sometimes commercial clients are growing faster than the credit products built to fund them, and banks that cannot keep pace are losing those relationships to fintechs, factoring companies, and larger banks with broader product sets. AR financing is the product gap many community banks have not closed, and it offers a path to retaining commercial... Read More →
Why Commercial Janitorial Services Are a Strong AR Financing Opportunity
Commercial janitorial and facility cleaning companies sit at an interesting intersection for community bank lenders. They are in every market, they serve creditworthy customers, they generate predictable recurring invoices, and they are passed over by the conventional commercial lending market. For a community bank building or expanding an AR financing program, this industry deserves a... Read More →
Five Common Questions About an AR Financing Program
Question 1: What Is the Risk Profile? The risk in AR financing sits in a different place than the risk in a conventional commercial loan. In a term loan or revolving credit facility, the bank’s primary risk is the borrower’s ability to generate cash to repay the debt. In AR financing, the primary risk is... Read More →
How AR Financing Deepens Commercial Relationships at the Moment Businesses Are Growing Fastest
A manufacturing client lands a contract that triples its order volume, which looks like a win for the bank. The client is growing and the relationship manager is happy. Yet rapid growth creates a moment when a commercial relationship faces its highest exposure. The same client who lands the big contract may be the client... Read More →
The Staffing Industry’s Working Capital Problem and the Lending Opportunity It Creates
Key Takeaways: Staffing agencies pay placed workers weekly or biweekly while client companies pay invoices on net-30 to net-90 terms. That timing gap repeats every week across every client account. According to the Bureau of Labor Statistics, temporary help services employment tracks closely with broader employment conditions, making staffing agencies a persistent and embedded part... Read More →
How AR Financing Reduces Commercial Real Estate Concentration in Community Bank Portfolios
Key Takeaways: According to the FDIC’s 2025 Risk Review, roughly 31% of all U.S. banks were classified as CRE-concentrated at year-end 2024, meeting or exceeding the regulatory thresholds that trigger heightened supervisory scrutiny. CRE concentration has been linked to bank failures and asset quality problems across multiple economic cycles, and regulators have continued to emphasize... Read More →
How Community Banks Can Generate Fee Income Without Adding Operational Complexity
Key Takeaways: Community bank net interest margin remained below its pre-pandemic average through 2024, finishing the year at 3.44%, compared to a pre-pandemic average of 3.63%, according to FDIC data. Non-interest income has become a more important contributor to overall profitability as margin compression persists. AR financing programs generate recurring fee income on every... Read More →
The Case for Offering AR Financing Before Your Commercial Clients Find It Elsewhere
Key Takeaways: 24% of small businesses sought financing through an online lender in 2024, up from prior years, driven by speed, perceived approval likelihood, and lack of collateral requirements. Many of those applicants had an existing bank relationship. Online lenders consistently receive the lowest satisfaction scores in the Federal Reserve’s annual Small Business Credit Survey.... Read More →
The Transportation Sector’s Working Capital Problem and the Lending Opportunity It Creates
Key Takeaways: Truck transportation employs 1.6 million workers and accounts for 24% of all transportation and warehousing jobs in the U.S., according to the Bureau of Labor Statistics. Behind that workforce is a large base of small and mid-sized carriers with a persistent, structural cash flow problem. Trucking companies complete deliveries and then wait 30... Read More →