|HOME WHY FOSTRIAN CASE STUDIES FOR BANKS PRESS CONTACT|
As a factoring company Fostrian's mission is 100% centered on fostering our clients' growth and overall emergence to success. We want our clients to strengthen their financial position and graduate to bank financing.
Fostrian and Banks
There are two basic scenarios where Fostrian is providing help to banks:
Scenario 1 (Bankís prospective customers)
In this type of scenario, Fostrian is partnering with the bank, with Fostrian providing a bridge line of credit, while the bank is able to obtain the deposit accounts. Not too far down the road the client can strengthen its financial position, at which time the bank will take over the line of credit from Fostrian.
Scenario 2 (Bank customers in workout)
In return for the bank subordinating its position on the clientís accounts receivable, Fostrian will lend 80-90% on these accounts receivable. The proceeds can go 100% to the bank, or be split between the bank and the client, depending on the wishes of the bank together with its client. The net result is the bank is paid down (or paid out), and the client can receive a needed injection of cash from Fostrian Business Capital. The client also takes on a line of credit (from Fostrian) that is not capped, but will grow with the client and therefore be able to support any increase in sales the client may realize.
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