Scott Valley Bank has announced the launch of the exclusive new SVBusiness Excelerator™, an innovative, incubator-style program designed to help growing businesses achieve financial milestones and provide a clear path toward conventional bank financing. The SVBusiness Excelerator is offered through SVBusiness Capital, Scott Valley Bank’s Asset-Based Lending (ABL) Division.
Conceived by Scott Valley Bank’s ABL Division Head Kevin O’Hare, the SVBusiness Excelerator takes a systematic, yet highly tailored approach to helping growing companies qualify for conventional bank financing.
“For years, our industry has been challenged by the gap between asset-based lending approaches and the lower-cost, less intensive structures available in bank commercial financing. The notion of a systematic method for pre-qualifying and subsequently transitioning worthy bank prospects from an ABL credit relationship over to the conventional side of the bank, was something that made sense but seemed rare as a ‘natural occurrence,’” according to O’Hare. “A working group within Scott Valley Bank saw this need and responded with a unique product that rewards financial improvement with reduced monitoring and lower cost financing, as well as provides for an orderly path to the bank’s commercial lending arm.”
During the first phase of the program, businesses will begin with an enhanced “light” form of ABL-style lending, which provides companies with flexible forms of financing that are less restrictive than conventional ABL financing. These revolving lines of credit and term loans typically range in size from $250,000 to $7.5 million. Companies that perform well during phase one will move into phase two, where they will be assigned a Scott Valley Bank Commercial Lender to guide them through a seamless transition to conventional bank financing. SVBusiness Excelerator offers improved pricing and less stringent bank monitoring, bolstering profitability and reducing impact on daily operations.
“The SVBusiness Excelerator provides companies with a genuine ‘leg-up’ by tailoring financing that is responsive to their changing needs. It further equips them for success by providing the tools necessary to understand the qualifications and reporting requirements of traditional commercial financing,” commented Craig Van Selow, Scott Valley Bank’s President and CEO. “In a world of one-size-fits-all financing solutions, the SVBusiness Excelerator truly stands apart as banking the way it should be.”