At Allied, we partner with banks to create a win-win situation for the bank and its customers. A referral arrangement with Allied allows a bank to provide an alternative financing source for their customers and prospects who could not otherwise receive financing.
As a result, the bank can gain an inside track on obtaining deposits and offering other financial services, as well as lending opportunities when the client becomes bankable again.
After a detailed evaluation of the bank’s organizational structure, goals, credit approval processes, officer calling programs, compensation and bonus programs, Allied customizes an implementation plan that fits well with the specific bank’s needs and objectives and addresses the unique qualities of the bank. This is all part of Allied’s general approach for building a successful bank referral program.
The overall success of Allied’s referral program is largely determined by the strength of the bank’s commitment to and endorsement of Allied as their preferred alternative financing relationship. The Allied team is 100% committed and eager to work with the bank’s business bankers to create a win-win situation for all.
How Can Allied Help a Bank as a Referral Source and Partner?
We want to help you win business through offering alternative financing services to clients that aren’t a fit for the bank. A partnership with Allied gives a banker the ability to help a prospect/customer by offering an alternative financing source rather that just turning down an un-bankable credit request.
Selecting Allied as your partner allows your bank to:
• Focus on establishing cross-selling opportunities for other bank products while Allied handles the working capital facility. • Monitor the credit worthiness of the client and, at any time during the term of the factoring relationship, move the client into a traditional bank facility without the client paying a termination fee. • Refer existing client relationships who no longer meet the bank’s credit standards to Allied, creating a quick exit strategy and a seamless transition for the client. • Earn fees from deals that are of zero value today with minimal effort. Prospects currently declined due to lack of earnings, cash flow or equity can now be considered as prospective customers without increasing the bank’s overhead.
If you are interested in becoming a “Referral Bank Partner” with Allied, please contact:
Allied offers nationwide referral relationships with banks. We currently partner with more than 30 different banks across the United States to provide a highly tailored, “turn key” process that allows the banks to provide an alternative lending solution to their clients that do not, for various reasons, meet the bank’s credit criteria.
When a banker who is part of our formal referral network refers a customer to Allied, and we then close and fund a transaction with that customer, a twofold referral fee is paid to the bank. This referral fee can then be divided between the bank and the referring banker and would be paid as follows:
• A closing bonus paid immediately following the first funding to the closing banker • An on-going fee to the bank, paid monthly for the life of Allied’s relationship with the referred client
Depending on the size and length of the client’s relationship with Allied, total referral fees can easily exceed $100,000 per year and, depending on the size of the bank, can exceed $1,000,000 per year.
Factoring In A Recession
The factoring industry tends to perform well in periods of economic recession. The chart below shows the year-over-year growth of factoring compared to its nearest competitor – asset based lending.
Factoring Fact
Allied Founded in 1992
Allied Affiliated Funding is a nationwide, commercial finance company founded in 1992, specializing in factoring accounts receivable, generally for businesses that do not qualify for traditional bank financing.
