Tech CU (Technology Credit Union) is expanding its commercial loan services by providing asset-based lending, including accounts receivable and inventory financing. The credit union will provide small- and mid-size companies (manufacturers, distributors and service companies) revolving credit facilities from $100,000 to $5 million, to be used for debt refinancing and equipment purchases, as well as to supplement working capital.
Jeff Johnson, former EVP and co-owner of BFI Business Finance, has joined Tech CU’s commercial banking group as SVP and division manager of asset-based lending. Tech CU is the first credit union in the country to offer a comprehensive loan program for this type of specialized financing. Hank Noon, former account executive and analytics manager with BFI Business Finance, also joins the asset-based lending division as VP and credit manager.
Johnson has more than 24 years of experience in asset-based lending, having served in a variety of senior-level management and sales roles within the financial services industry. Prior to joining Tech CU, he was among the group that led Bay Area-based BFI Business Finance in its expansion to 13 western states and growth from $19 million to $100 million in loans from 2001-2007. Noon, who was also a member of that team, has 10 years of experience in financial services and business lending, with a specialized focus on credit risk and asset-based loan portfolio management.
As Tech CU’s membership has grown, the credit union has expanded its business services to meet the needs of business members, including adding a variety of options for commercial lending, such as SBA loans, and commercial real estate and construction loans. Asset-based loans are an additional source of working capital for growing companies in a wide range of industries, including:
- Manufacturing, wholesale and distribution
- Technology (hardware, software and storage)
- Consumer products and services
- Healthcare
- Telecommunications
“Jeff and Hank come to us from a high-performance, service-oriented culture, and that’s a great fit for Tech CU as we focus on growing and diversifying our products,” said Tech CU’s EVP and chief banking officer, Joe Anzalone. “We’re expanding our offerings to provide more financing options for our members and companies throughout the Bay Area. The expertise and proven experience Jeff and Hank bring in asset-based lending will be a great addition to our commercial banking group.”
“With asset-based lending, Tech CU can offer more flexible and accessible funding options to businesses that need capital, but are unable to get it from traditional lending sources,” explained Johnson. “Pair that with Tech CU’s long-standing reputation as a trusted, local lender and the experience of the commercial banking team that has been assembled, and I believe we’ll be very successful in growing this business.”