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Charter Capital is a non-bank provider of working capital funds and accounts receivable factoring services to small
businesses. Commercial bankers regularly refer to
Charter Capital their small businesses customers
constrained in their ability to qualify for
conventional financing. By employing its factoring
services, Charter Capital quickly becomes a
predictable source of working capital for many
such referrals.
The lending and funding problems that have beset
retail banking are spreading into small-business
banking as well. Overextended on credit lines that
often were based on home equity, small businesses
are increasingly hard-pressed to service debt in
an atmosphere of slowing sales. Working capital,
often held in bank deposits, is coming under
strain as well.
Shifting into protective mode, banks are
ratcheting up the emphasis on credit quality and
core funding in their small-business portfolios.
And this has created a particular problem for
small-business banking officers, who are being
redirected from a former bull market for loans to
what increasingly is a bear market for deposits.
Problem solved
Charter Capital provides incentives to small
businesses to maintain their deposit relationship
with the referring bank. The banker helps the
small business establish an alternative source of
funding and preserves the deposit business it
would otherwise most certainly lose to the
competition.
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