Alternate financing: Facts you and your clients need to know
Mar 15th, 2010 | By Ernie Brown | Category: Alternative FinancingAlternative financing is typically an alternative to lending. A bank or financial institution lends money based on a borrower’s credit strength, and then holds that borrower responsible for repayment of the loan. But did you know that the bank or financial institution has the right to pursue the borrower’s customer in a case of default?
The alternative financer typically provides working capital based on the credit of the paying customer. The alternative financer also provides funding and, more often than not, funds on the non-performing assets of a company by assessing future and/or past transactions.
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