Service and Support9.3/10
- Offers invoice factoring.
- Same day funding for invoices (once approved).
- 90% advance rates common.
- Meta Bank takeover provides deeper funding pool for small businesses.
- In business since 1997, weathering both the technology bubble and financial crisis.
- Recently taken over by a publicly traded company- could pressure fees.
- Only offers discount factoring (customers retain credit risk).
- Initial funding takes 5-15 days.
· Headquarters: Troy, Michigan
· In Business Since: 1997
· Funding Category: B2B Financing Services
· Total Amount Funded: $2 billion+
· Primary Financing Method: MCA Financing
· Popular Options: Asset based lending
Crestmark Bank is headquartered in Troy, Michigan, with additional ‘division’ offices in Boynton Beach, Florida, Newport Beach, California, Baton Rouge, Louisiana and Franklin, Tennessee. The bank was founded back in 1997 by Dave Tull who saw the opportunity for middle market lending and small business financing.
Crestmark offers business customers funding options including:
· SBA 7(A) loans
· Term loans
· Accounts Receivable Financing
· Equipment Leasing
· Startup Loans
· Machinery Financing
The Franklin location is Crestmark’s Transportation Services Finance Division which offers funding for truck fleets and other transportation businesses. As such, they compete with trucking factoring companies including OTR Capital, Apex Factoring, Triumph Business Capital and Fleet One Factoring. Specifically, check our Fleet One reviews to see how they score versus our Crestmark reviews.
Crestmark also provides asset based funding and working capital business loans to business customers via a network of sales representatives in locations including:
· Castle Rock, Colorado
· Houston, Texas
· Benton, Arkansas
· Jamestown, North Carolina
· Ontario, Canada
The bank also provides equipment and x leasing to business customers through representatives in:
· Weyauwega, Wisconsin
· Morristown, New Jersey
· Walpole, Massachusetts
· Stowe, Vermont
How is Crestmark Bank Different from Factoring Companies?
Crestmark is a bank, not a factoring company per say, but does offer invoice factoring solutions. We like to call Crestmark a factoring company in bank’s clothing. Such funding helps B2B clients including construction companies, government contractors and manufacturing entities. Crestmark is also a direct lender, meaning they don’t rely on outside sources of capital for their funding options (and rates).
Unfortunately, Crestmark only offers discount factoring. Non recourse factoring transfers the credit risk of the account debtor to the factoring company. While it is more expensive to the customer, it is a risk management tool that many small businesses appreciate (and will pay up for).
Crestmark offers financing to businesses not generally covered by factoring companies.
· Book Publishers
· Promotional Marketing Companies
· Footwear Companies
· Insurance Agencies
· Communications Installers
Also, Crestmark is owned by a publicly traded company, unlike most factors. Crestmark Bancorp was taken over by South Dakota-based Meta Financial Services on August 1, 2018.1
The acquistion provides Meta Bank with a national, B2B footprint. In addition to community banking and payments, Meta provides tax services to it’s business customers. Now, this service should provide a value add for Crestmark’s business customers.
As long as there’s no major culture clashes or power struggles with the takeover, things should be fine. But publicly traded companies have their own set of metrics that are, by the nature of financial reporting and accounting, short-term (quarterly). We hope this can align with offering business customers the best funding options at the lowest price. An inherent conflict between the two exists.
Finally, by utilizing Crestmark’s receivables management program can lead to more traditional, and cheaper, bank financing such as a small business line of credit. And your business doesn’t need to leave and go to a bank for it-you’re already there!
Crestmark Pros and Cons
In addition to the Crestmark reviews above, we reiterate these key pros and cons:
· Offers invoice factoring
· Same day funding for invoices (once approved).
· 90% advance rates common.
· Meta Bank takeover provides deeper funding pool for small businesses
· Been in business since 1997, weathering both the technology bubble and financial crisis.
· Recently taken over by a publicly traded company- could pressure on fees
· Only offers discount factoring (customers retain credit risk).
· Initial funding takes 5-15 days.
For more information on Crestmark:
Who Uses Crestmark Bank?
Where does their funding come from?
Do they offer specialty financing options?