Your Small Business Funding Partner

Banks, realizing the value and profitability of small business clients, are increasingly trying to attract small enterprises with services tailored to meet their unique needs. This can sometimes be challenging, but Magnolia Financial makes it easy with innovative small business financing solutions.

Smaller businesses can have a more difficult time maintaining cash flow, a problem that can put the firm in jeopardy if it lasts for several months. Bankers are put into a difficult position when their clients apply for a small business loan but do not meet the necessary credit requirements to receive funding.  Now, your small business clients can be referred to Magnolia Financial. Magnolia provides accounts receivable financing, which allows small businesses to exchange outstanding invoices for immediate cash advances. Bankers can help build better relationships with their clients by establishing a referral opportunity with Magnolia. Since we specialize in small and mid-size customers, banks can simultaneously avoid risk while helping their small business clients get the financing assistance they need.

How Our Small Business Financing Program Works

The Magnolia Cash Flow Program is a working capital line of credit offered to small to medium size business customers using their accounts receivable as funding collateral. Magnolia's small business financing program places the customer on an all-cash basis, giving them today's dollars to use in their company that would otherwise not be remitted for 30 or 45 days from now, sometimes longer. Our programs will allow the small business owner to keep payables and loan payments current. The small business funding also increases their operating capital, saves them time and resources by outsourcing collections, and gives them the ability to grow their business.

Program Benefits to Your Bank

We realize that each business customer is different and your relationship with your customer is essential. That's why we work hard to understand your customer's business in order to develop a funding solution that best suits the company's needs. This benefits your bank in a number of ways:

  • Protect Customers – Magnolia helps you prevent the loss of your commercial relationships to competitors by providing you with alternative sources of lending.
  • Risk Free – Unlike many third-party relationships that leverage the financial resources of their "partner bank," Magnolia Financial uses its own capital to fund the customer, eliminating any and all credit risk for your bank.
  • Increase Revenue – Magnolia will offer your bank a perpetual revenue stream that would otherwise be untapped or exploited elsewhere.
  • Increase Deposits – Magnolia increases bank deposits by wiring funds directly into your customer's checking account.

When your customers apply for a small business loan but don't meet your bank's credit criteria, refer them to Magnolia Financial. By offering your small business clients alternative financing options, you can reinforce your business relationship without any credit risk for your bank. Please contact us today for more information.