National Bank of Arizona on Facebook  National Bank of Arizona on YouTube Subscription Page
National Bank of Arizona

NB|AZ® Business Credit Division

An Alternative Solution To Conventional Working Capital Financing


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.



 
About Us

National Bank of Arizona, 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 NB|AZ 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 NB|AZ 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 NB|AZ 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.



 
 
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 NB|AZ 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 credibility 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.


 
 
Companies and Industries Serviced
  • Staffing
  • Service Companies
  • Trucking
  • Energy
  • Manufacturing
  • Wholesalers / Distributors
  • Government Contractors


 
 
Business Challenges

At NB|AZ, 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
 
 
The NB|AZ Business Credit Advantage
  • More than 100 years of combined business credit experience
  • Arizona 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

 
 
Success Stories
Learn more about how the NB|AZ Business Credit division has provided credit financing to various industries across the country.

COMPANY NAME: Asphalt Maintenance Company
DATE FUNDED: March 2016
RELATIONSHIP MANAGER: Tia Kavas, A/R Relationship Manager
REFERRAL SOURCE: Business Banking
COMPANY INFORMATION: The Company is a recently established asphalt maintenance business experiencing rapid growth due to significant owner relationships in the real estate industry. Revenues increased to $4MM in 2015 from $2.5MM in the prior year, its first in business.
FINANCING DESCRIPTION: FACILITY: $750,000
ADVANCED RATE: 85%
TERM: No term, 60 day notice to terminate
NOTABLE ASPECTS: The company had an existing bank but quickly needed a larger working capital facility. The customer moved to another factor, but Business Banking was able to introduce the bank's factoring option which provided more favorable terms to the client on price and structure while also moving the entire relationship to the banker. The client currently has a bank LOC of $300,000 in addition to their factoring facility. The customer also opened up a bank lockbox and business checking accounts. The company will utilize the factoring facility until they qualify for a more substantial conventional line.


COMPANY NAME: Government contracting company
DATE FUNDED: May 2016
RELATIONSHIP MANAGER: Tia Kavas, A/R RelationshipManager
COMPANY INFORMATION: The subject is a government contracting company, specializing in cyber security solutions and training for the Department of Defense. Due to their emphasis on R&D, they had several years of losses and negative equity.
FINANCING DESCRIPTION: FACILITY: $3,000,000
ADVANCED RATE: 90%
TERM: No term, 60 day notice to terminate
NOTABLE ASPECTS: Most of the company's funding came from private investors, but they were in need of a working capital solution flexible enough to accommodate their growth. ABBC was able to provide a substantial factoring line, encouraging the company to move all of their accounts to the Bank. In March of 2016 the company asked to terminate their relationship in order to move to another alternative lender promising to offer a $1MM LOC over and above their factoring line. Once it came time to sign with the other financing company, they asked to return because the terms of the relationship were not what they had been promised. As of May, the company renewed their relationship with ABBC and the Bank. The company will utilize the factoring facility until they qualify for a more substantial conventional line.


COMPANY NAME: Wholesaler / distributor of meat and meat products
DATE FUNDED: April 2016
RELATIONSHIP MANAGER: Tia Kavas, A/R RelationshipManager
REFERRAL SOURCE: Commercial Banking
COMPANY INFORMATION: The Company is well established company in the distribution of meat and meat products. As a distributor, they operate on thin margins and are heavily dependent on beef prices. Cash availability is very important to the company, in that it enables them to take advantage of cheaper vendor prices when they buy in bulk or in advance.
FINANCING DESCRIPTION: FACILITY: $1,750,000
ADVANCED RATE: 85%
TERM: No term, 60 day notice to terminate
NOTABLE ASPECTS: They 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. ABBC was able to approve a larger line of credit, at competitive rates, with no concentration restrictions. They also opened up a lockbox and business checking accounts. The company will utilize the factoring facility until they qualify for a more substantial conventional line.

 
 
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

*Loans subject to credit approval. Terms and conditions apply.
 
 
Forms
The following forms are available online:

Amegy Business Credit Application

NB|AZ Personal Financial Statement
 
 
Contact Us
For Conventional Working Capital Financing and to start the cash flow process, you may contact us using the following:

Tia Kavas
Vice President
P: 720.947.7490
E: Tia.Kavas@amegybank.com

David Cook
Senior Vice President
P: 713.232.2586
E: David.Cook@amegybank.com