Think Partners, Not Competitors – In Good Times and Bad, Banks and Factors Should Collaborate

Not so long ago, small- and mid-sized businesses had an all-you-can-eat buffet of capital. Investment, regional and community banks, asset-based lenders, hedge funds, factors and individuals all vied for the entrepreneur’s business — holding out carrots of competing rates and lighter terms. Banks competed with banks, and banks competed with alternative financing firms.