Invoice Factoring With National Bank of Arizona
National Bank of Arizona Information:
- National Bank of Arizona Headquarters: Phoenix, AZ
- FDIC Insured: Yes
- In Business Since: 1998
- Direct Lender: Yes
About National Bank of Arizona
National Bank of Arizona is an FDIC-insured bank based in Phoenix, Arizona with branches throughout the state including numerous locations in Flagstaff, Scottsdale, Glendale and Yuma. Their mailing address for information requests is Salt lake City, Utah. NB-AZ provides banking services to both consumers and businesses.
For consumers NB-AZ services include checking and savings services, conventional and jumbo mortgages and auto and recreational vehicle financing. On the commercial side, they offer Treasury Management services, equipment financing, small business lines of credit, invoice factoring, small business credit cards and invoice financing.
Invoice Factoring at National Bank of Arizona
Through their Business Credit division, the National Bank of Arizona provides invoice factoring for almost any business with cash flow issues stemming from late payment, funding transactions up to $50 million in size. NB-AZ has the ability to service business customers all across the West with locations in Arizona, California, Colorado, Nevada, Oregon, Texas, Utah and Washington.
National Bank of Arizona uses its affiliate division, Amegy Bank, for the factoring resources. Like NB-AZ, Amegy Bank is a division of Utah’s Zions Bank. The factoring application that potential businesses use is from Amegy Bank and is quite thorough. Be prepared to have your paperwork in order.
Required Documents at Amegy Bank Include:
- Accounts Receivable Aging
- Accounts Payable Aging
- Corporate Financial Statements (prior full year and most recent interim)
- Tax Returns (last two years)
- Detailed Customer Lists with Addresses and Phone Numbers
- Personal Financials on all Guarantors
- Sample invoices
The Business Credit division has been quite busy factoring accounts receivable for area businesses. In 2016, the National Bank of Arizona provided Asphalt Maintenance Company with a $750,000 financing facility. This was a new company, just two years old, but had been experiencing rapid growth maintaining asphalt in and around the real estate industry.
National Bank of Arizona also provided a $3 million facility to a technology company that provided cyber-security solutions for the U.S. Department of Defense. Government contracts often result in delayed payments and the tech company had net working capital needs.
National Bank of Arizona Factors Invoices for:
- Staffing Companies
- Government Contractors
The aforementioned industries often experience cash flow issues coming from delayed customer payments. These customers are granted the ability to purchase goods or services on credit. In the trucking industry, for example, the invoices cannot be paid until after the trucks have delivered their loads.
National Bank of Arizona Invoice Factoring Info:
- Funding Advance: Up to 90% of eligible invoices
- Funding Time: Under 24 hours
- Contract Length: None, but 60 day termination notice
- Dedicated Rep: Yes
- Credit reports
- Collection services
Invoice Factoring Company Review: National Bank of Arizona
We were impressed with the asphalt company transaction. The company was working with a different bank as well as a traditional factoring company for its working capital management. National Bank of Arizona was able to steer them to NB-AZ for all their financing need, in one shop. This shows that NB-AZ has the ability, and willingness, to be flexible to win new business.
For example, it was refreshing to see that there was no term length with their factoring facility. Banks typically like to lock factoring clients up for at least one year as a general rule. The only thing National Bank of Arizona requires is a 60-day notice before termination. This tells us that they are providing the right services at the right price, if they are so confident that their clients will stay with the bank.
Although, we would have liked to see the advance rate a bit higher than 85%, we understand how banks can be a bit skittish when it comes to the credit worthiness of real estate companies and/or developers, especially in Arizona and other hot real estate markets.
Plentiful Capital Sources
Since National Bank of Arizona is a subsidiary of Zions Bank, it is backed by a financial institution with roughly $63 billion in total assets and $53 billion in deposit, as of 2016 end.1 They also have a Texas Ratio of 7.1%, which is above average.2 This metric is important for a bank since it demonstrates how much capital it has relative to non-performing loans.
A Solid Reputation
Reviewing what customers were saying about their dealings with NB-AZ and the associated factoring divisions uncovered generally positive comments. We found a few unhappy customers with NB-AZ, but few in number. They were mostly related to overdraft fees (not factoring)-all of which were resolved. National Bank of Arizona is rated A+ by the Better Business Bureau, but not accredited.
Amegy Bank is similarly A+ rated with few complaints. Zions did show a C+ rating at the BBB which is a bit disappointing, as it shows dissatisfaction among customers. There are two sides to every story and none of the transgressions were with the factoring division.
Should I be Factoring Receivables at National Bank of Arizona?
Given, their deep-pocketed parent, Zion Bank, positive reviews and broad factoring experience (the) we are comfortable factoring receivables with National Bank of Arizona. NB-AZ’s Business Credit Division has been accounts receivable factoring for almost twenty years (since 1998) and their management has a combined 100 years in the factoring industry providing a level of security.
Get a free quote and see how much you qualify for through small business factoring.