Invoice Factoring at Green Bank
(Read Time: 2-3 Minutes)
Green Bank Information:
· Green Bank Headquarters: Cleveland, TX
· FDIC Insured: Yes
· In Business Since: 1998
· Direct Lender: Yes
About Green Bank
Green Bank is an FDIC-insured bank based in Texas with branches throughout the state as well as Kentucky. They provide banking services to both consumers and businesses.
For consumers their services range from basic checking accounts and CDs to IRAs and remote deposit banking.
On the institutional side, they offer a full array of Treasury management solutions and funding options ranging from factoring to lines of credit and SBA loans.
Green Bank Funding Options
· Lines of Credit
· Warehouse Lending
· Business Loans
· Invoice Factoring
· Merchant Card Services
· SBA Loans
Green Bank is a major participant in the U.S. Small Business Administration’s loan programs. The most popular of these government guaranteed loan programs is the 7(a) but Green Bank also provide the SBA Express, Patriot Express and CDC/504. SBA loans are generally used for working capital loans, equipment, debt refinance and leasehold improvements.
In fact, the bank reports being a top ten SBA lender in the State of Texas. Green Bank is an SBA preferred lender, meaning that customers can get access to funding at an accelerated pace-often just three days. Traditional bank loans typically take weeks, even for many SBA loans.
Invoice Factoring at Green Bank
Green Bank prides itself on offering financing solutions that are customized to each business. They offer facilities ranging from $200,000 to $5 million, so they help both small and larger businesses alike. Green Bank provides the funding by purchasing your outstanding invoices and advancing you an amount of funding based on the face value of the invoice, up to 95%.
They then work directly with your customers for repayment. This takes the awkwardness out of your day-to-day business and frees up more resources for general operations. And the collections and credit services are free (included with the factoring fee).
According to Green Bank, the total time until funding can be as little as four days. First, you complete an application and, upon acceptance, you can receive a proposal within 24 hours. From then, funding can commence in as little as three days. In this time length it would be impossible to obtain a traditional bank loan, assuming you could even qualify.
Banks are notoriously strict lenders and if your business has bad credit, you can forget it. With invoice factoring, your credit doesn’t matter-it’s the credit of your customers that Green bank is concerned with because that’s who’s going to pay them after factoring invoices.
Your business won’t incur any additional debt with factoring since it’s an asset sale, not a loan. Your outstanding invoices are considered accounts receivable on your balance sheet. This is why invoice factoring is also known as accounts receivable factoring.
Once you obtain the funds, Green Bank places no restrictions on how the funds are used. And unlike with a traditional loan, you don’t have to pledge your personal assets as collateral or have an existing business checking account at the bank.
Further, Green bank accepts international accounts receivable (not older than 90 days) but prefer them to be insured by the Export Import Bank.
Green Bank’s factoring group has been busy over the last year, especially in Texas. They have provided $10 million in funding to a specialty I.T. firm in Irving, $4 million to a specialty packaging manufacturer in Dallas, and $4 million to a legal aid services firm in Austin. But you don’t have to be a large company with an oversized factoring facility. Green Bank also services smaller companies, providing $500,000 to a metal recycling firm and $250,000 to an organic beverage maker in Houston.
Green Bank Factors Invoices for:
· Staffing (Temp) Companies
· Consultants and other Business Services
· Printing Businesses
Printers and temporary staffing companies examples of industries that experience cash flow issues stemming from delayed customer payments.
Green Bank Invoice Factoring Info:
· IFA Member: Yes
· New Account Set Up: As quickly as 4 days
· Funding Advance: Up to 90% of eligible invoices
· Funding Time: Under 24 hours
· Monthly Minimums: None
· Contract Length: One year
· Dedicated Rep: Yes
· Factoring Support Services: Credit services, collections
Green Bank Invoice Factoring Company Review
Abundant Capital Sources
As of 2016, Green Bank has nearly $4 billion in total assets with $3.38 billion in deposits. They also have a Texas Ratio of 13.56%, which is above average. The Texas ratio is an important metric for a bank since it communicates how much capital a bank has relative to non-current loans.
Green Bank has a Solid Reputation
Reviewing what customers were saying about their dealings with Green Bank uncovered generally positive comments. There were some unhappy customers, but few in number. They involved account fees, not uncommon with a bank, but there was nothing related to their factoring division. The bank is rated A+ by the Better Business Bureau, but is not accredited.
Numerous Funding Options
Green Bank offers a wide variety of funding options. For businesses that don’t want to take on additional debt, they offer invoice factoring to improve cash flow by selling off assets (outstanding invoices) at a discount. They also offer asset based lending, revolving lines of credit and SBA loans.
Can Help Your Business through the Lifecycle
When a traditional bank doubles as your factoring company, it increases the financing options for your business. Invoice factoring is a great way to improve short term cash flow, fast.
As your business matures, cheaper financing sources become available to improve net working capital. Green Bank’s accounts receivable financing and ABL programs offer funding based on the level of assets such as accounts receivable, inventory and equipment. A small business line of credit should be your next option, or a small business loan guaranteed by the SBA. Remember, Green Bank is a preferred SBA lender.
Should I be Factoring Receivables with Green Bank?
Considering their financial resources, generally positive reviews and numerous small business funding options through their SBA programs, we would certainly be factoring receivables with Green Bank. They have also been in business since 1999 which provides a level of security.
The only negative we see is the one year contract length-we prefer the shortest contract lengths possible for businesses. Still, there is no early termination fee with their factoring contract.
Get a free quote and see how much you qualify for from an invoice factoring company.
Other Invoice Factoring Companies like Green Bank:
· Tab Bank