Minimizing Risk is among the many benefits afforded to the CCS Bank client. A primary benefit is the ability to make commercial loans more safely based on collateral in addition to real estate.
Businesses turn to their Community Banker because they need stable and adequate cash flow, but these working lines of credit are very difficult to underwrite without the necessary collateral. The CCS system provides the Community Banker with a safer and more secure method to retain these customers who would normally be referred elsewhere. Returns for loans made in the CCS program are stellar, with our Banks averaging 16.5% net/net on an annual basis.
Principal benefits of this program:
- Credit insurance backs invoices up to 90% - even in bankruptcy.
- Cash reserves of 10% to 20% are held for each customer account.
- FDIC-compliant audits are systematically and randomly performed.
- FDIC-regulated SAS-70 lockboxes control all payment streams.
- All invoices are dual screened for legality, availability, and accuracy.
- 100% of all invoices are verified prior to funding.
- Certified fraud examiners manage all operations.
Loans made within the CCS program are zero percent, self-liquidating, short-term credit facilities. A 2% to 4% discount fee is charged on invoices funded in the receivables program, and this income is shared with CCS. Once a reserve has been established, advance rates of 98% - 96% are available to your customer. Bank yields are in the teens, reflecting appropriate pricing in today's market.
Our Asset Based Lending Program provides benefits that factoring and other ABL programs simply cannot offer, at costs well below market rates. This service has proven effective in attracting new clients, as well as providing needed low-cost liquidity for existing customers.