This is an archived article that was published on sltrib.com in 2012, and information in the article may be outdated. It is provided only for personal research purposes and may not be reprinted.
Celtic Bank, Salt Lake City, is introducing a non-recourse factoring product for small and middle-market business.
Non-recourse factoring entails the bank purchasing a company's accounts receivables at a discount. Under such an arrangement, the bank assumes the risk of collecting on the debt.
The new product, which draws upon the bank's expertise in asset-based lending and underwriting small business credit risk, will be offered and serviced by the bank's asset-based lending division.
"We are excited about the introduction of this new product to the marketplace," Reese Howell Jr., CEO, said in a statement announcing the availability of the new factoring product. "We feel like it is a growng complement to our asset-based and other small business loan programs. In addition, we have strong management and staff experience in the industry, which will serve us well going forward."
He added those who may be interested in the new product could include customers in the consumer goods sectors who wish to effectively minimize or even eliminate bad debt losses, outsource back office accounts receivable management, improve accounts receivable turnover and increase access to working capital.