Let’s face it; this economic environment has been tough on everyone. When demand for goods and services is down, businesses suffer. And, the banking industry has been hit from both sides dealing with low business owner confidence and government regulation. Fortunately, many economic indicators are moving in a positive direction for 2011 and demand for working capital is increasing. RMP Capital is helping banks find a way to say “yes” to businesses, when at first they had to say “no,” through our Community Bank Program. We offer a hybrid turnkey Accounts Receivable Funding Program for banks to offer their customers and prospects at no risk or cost! Accounts Receivable Funding is an alternative to traditional bank financing, specifically to increase cash flow and fund growth. A common theme I am hearing from banks all across the country is to increase deposits. RMP Capital partners with community banks as a third-party asset-based lender. Therefore, a non-bankable borrower often can secure necessary working capital the bank cannot provide. As a result, RMP Capital can help clear the way for the bank to service the deposit relationship and maintain the trust of the borrower. All while earning fee income throughout the relationship. And, the best news of all is that typically, the challenges facing the business will be solved in time, allowing the business to return to the bank for future credit needs.
As most bankers say: “It’s another arrow in our quiver that we have to have in this economic environment.” What do you think?
Chuck Stover, Manager of Bank Relations