Vectra Bank Colorado

Business Credit

Factoring / Business Credit

An alternative solution to conventional working capital financing.

Factoring / Business Credit

Our Goal
To deliver innovative working capital solutions, through a modified factoring program.

Our Solution
To offer a flexible source of funding that provides available capital for growing or transitioning businesses, in various industries, often as a bridge to conventional bank financing.

What is Factoring?

Factoring is working capital financing provided through the discounted purchase of qualified accounts receivable, typically offered to rapidly growing companies or businesses in financial transition. The factor purchases eligible invoices from a completed service or accepted product and essentially transfers the credit risk from the client to the client's customer.

How does the process work?
  • Invoice issued by client to customer
  • Invoice is sold to ABBC
  • Cash is used by client for growth, payroll, and/or other expenses
  • Invoice pays through client's lockbox
  • ABBC receives payment
  • Client receives reserve amount less fees
What if I'm already factoring?
  • Great, so you understand the product and basic process. Would you be interested in hearing how we may be able to offer you a better structure and price with a bank managed factoring facility?
Isn't factoring expensive?
  • It certainly can be more expensive than traditional bank financing but for the additional flexibility, frequently it is a trade-off that many companies are willing to make. Plus, it is viewed as bridge financing, a 6-36 month solution on average.
What if I already have an existing line of credit?
  • If you have an existing line of credit and you are happy with the structure and line amount, you should not look at making a change.
What if I don't want my customers to know that I'm factoring?
  • Much of our contact is transparent to the customer. We will need to have invoice payments sent to a Vectra Bank lockbox and notification is made to the customer, usually the AP department, regarding the payment redirect. We also verify a certain percentage of outstanding invoices. This can be done via portal, email, or phone call. Every situation is different. Plus, having a Bank managed working capital facility gives a business c redibility with its customers.
What if I don't want to send my checks to a lockbox?
  • Our customers actually prefer using our lockbox as we handle their invoice collection paperwork and all the information is available online wherever/whenever they need to see it.
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Companies and Industries Serviced


  • Staffing
  • Service Companies
  • Trucking
  • Energy
  • Manufacturing
  • Wholesalers / Distributors
  • Government Contractors
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Business Challenges

At Vectra Bank, we recognize that business challenges sometimes create non-traditional banking needs. In these situations, a more aggressive source of working capital financing may be the answer but also may be difficult to find. We look at the following challenges as opportunities to explore creative funding solutions for our customers and prospects:

  • Newly formed, early stage
  • High-growth
  • Seasonality
  • Acquisitions
  • New large orders
  • Owners with limited net worth and/or damaged credit
  • High debt or inadequate company net worth
  • Highly-leveraged
  • Leveraged or management buyouts
  • Turnaround or restructure
  • Unhappy with existing factoring or asset based lending relationship
  • Payroll tax issues or liens
  • Bankruptcy (DIP)
  • Non-compliance with required loan covenants
  • Inadequate existing revolving loan facility
  • Loan facilities anticipating decline
  • Concentration
  • Inadequate advance rate
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The Vectra Business Credit Advantage


  • More than 100 years of combined business credit experience
  • Colorado based institution, through the business credit division, providing same day funding for qualified clients
  • Unlike independent Business Credit providers, your funds are federally insured
  • Our low cost of capital allows for competitive client pricing
  • Flexible program compared to big bank structures
  • Advance rates up to 95% of the invoice amount
  • No exit fees with 60 day notice and no long-term commitments
  • Bridge financing that potentially leads to a traditional bank facility
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Correspondent Banking


  • The capacity to fund transactions up to $50MM*
  • A unique combination of business credit services and commercial banking creating an advantage with competitive pricing and relationship based bankers
  • Over 100 years of combined business credit experience
  • Financing a variety of business types as well as unique, non-traditional situations
  • No long term contracts
  • Ability to strengthen your customer relationships
  • Opportunity for our correspondent bank partners to participate in the client relationship and fee income

**Important Details**
*Loans subject to credit approval. Terms and conditions apply.

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About Us

Vectra Bank Colorado, a division of ZB, N.A., through it's affiliate division, Amegy Bank Business Credit (ABBC), is a leading provider of working capital finance throughout the U.S. The Business Credit Division of Vectra Bank has offices located in Arizona, California, Colorado, Nevada, Oregon, Texas, Utah and Washington with experienced relationship managers who serve businesses nationwide.

Since 1998, The Business Credit Division of Vectra Bank has operated as one of the largest business credit companies in the U.S., and has the ability to fund transactions up to $50MM. Our management team represents over 100 years of combined credit experience in the accounts receivable financing sector.

The Business Credit Division of Vectra Bank is respected for its stability, strong client relationships, and high levels of customer satisfaction. We deliver a simple and easy cash flow vehicle to enhance your ability to obtain working capital financing.

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Success Stories

DEAL SUMMARY


DATE FUNDED: April 2016
RELATIONSHIP MANAGER: Tia Kavas, A/R Relationship Manager
REFERRAL SOURCE: Downtown Commercial Banking

COMPANY DESCRIPTION
A well-established Denver company involved in the distribution of food products. As a distributor, they operate on thin margins and cash availability is very important to the company. Our factoring facility enables the company to take advantage of cheaper vendor prices, buying in bulk or in advance.

FINANCING DESCRIPTION
FACILITY: $1,750,000
ADVANCE RATE: 85%
TERM: No term, 60 day notice to terminate

NOTABLE ASPECTS
The company had an existing $1,5MM LOC with a competitive bank and were struggling with some of their profitability covenants, due to the rise in commodity prices. The bank posed several restrictions regarding account debtor concentration and cross aging, which restricted the company’s availability and ability to grow. Business Credit was able to approve a larger line of credit, with no concentration restrictions. They also opened up a Vectra Bank lockbox and business checking accounts.

The company will utilize the factoring facility until they qualify for a more substantial conventional line, which is estimated to be in 12-18 months.

DEAL SUMMARY


DATE FUNDED: 2016
RELATIONSHIP MANAGER: Tia Kavas, A/R Relationship Manager
REFERRAL SOURCE: North Metro Business Banking

COMPANY DESCRIPTION
A newly established asphalt maintenance company experiencing rapid growth, doubling in revenues from the first year in business.

FINANCING DESCRIPTION
FACILITY: $750,000
ADVANCE RATE: 85%
TERM: No term, 60 day notice to terminate

NOTABLE ASPECTS
The company had an existing small LOC with Vectra Bank, but quickly needed a larger working capital facility. The company had actually moved to another factor, but the Bank was able to introduce its factoring option. The Business Credit team provided more favorable terms to the client while also moving the entire relationship back to Vectra. The client currently has a small traditional LOC in addition to their factoring facility. The company also opened up a Vectra Bank lockbox and business checking account.

The company will utilize the factoring facility until they qualify for a more substantial conventional line, which is estimated to be in 12-18 months.

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Forms

The following forms are available online:

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For Conventional Working Capital Financing and to start the cash flow process, please complete the form below, contact us or complete the Amegy Business Credit Application today!

Tia Kavas
Vice President
720-947-7490
Tia.Kavas@amegybank.com

David Cook
Senior Vice President
713-232-2586
David.Cook@amegybank.com