Factoring brokers don’t originate mortgages—and that’s an asset, not a limitation. Right now many owners are exploring cash-out financing on their residences or owner-occupied real estate to generate lump-sum liquidity, while their day-to-day working capital is still pinched by slow-pay customers. That creates a natural two-product package bankers understand: the bank provides the real-estate loan (refi/HELOC/CRE), and you provide receivables financing that keeps cash moving between closings and collections. This article shows how to use that complementarity to open doors with local lending officers, build credibility fast, and convert football-season coffee chats into steady referral flow.
Why lending officers care (and why they’ll take your call)
Bankers want to (1) retain good customers, (2) protect collateral and deposits, and (3) avoid criticized loans. A borrower contemplating a cash-out often has a second, quieter problem: timing gaps in receivables. If the customer taps home or building equity but still waits 45–60 days to get paid, cash can tighten again—and the new mortgage payment only increased. Your pitch to bankers is simple and bank-friendly:
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Purpose fit: “Use long-term real-estate debt for long-term needs; use factoring for short, repeat gaps.”
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Stabilization: “A receivables facility improves DSCR and reduces overdrafts by smoothing inflows.”
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Compatibility: “We’ll structure to coexist with your line—intercreditor in place, lockbox transparency, lender reporting.”
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Customer retention: “We help unwind MCAs and keep the borrower bankable so you keep the relationship.”
You’re not competing for the real-estate loan; you’re helping it succeed.
Your banker map: who to approach and what to offer
Don’t spray and pray. Build a small, repeatable circuit:
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Business Banking / Small Business RMs (deposits + small CRE/HELOC).
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SBA BDOs (504 refis, acquisition/build-out; they see “almost there” files that need working capital).
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Commercial/CRE lenders (owner-occupied buildings; sensitive to DSCR and liquidity).
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Workout / Special Assets (prefer self-liquidating bridges to fire-sales).
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Branch managers (hyper-local introductions to business-owner depositors).
What you offer each of them: a co-sell package that pairs the bank’s cash-out with your factoring line, plus a fast triage call when an owner mentions cash-out but admits receivables are slow.
Outreach that gets meetings (scripts you can lift)
Subject: Help your cash-out clients stay liquid (15-minute idea)
Hi [First Name]—I work with B2B owners locally. When someone asks you about a cash-out on the home or building, there’s usually a second issue: 30–60-day receivables. We pair your refi/HELOC/CRE cash-out with a complementary receivables facility so the real-estate loan performs and the client avoids MCAs.
15 minutes next week? I’ll bring a one-pager: intercreditor basics, lockbox view, and a 13-week cash-flow template you can hand to clients.
– [You], [Title], [Mobile]
Coffee agenda (15 minutes)
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Two-minute owner story (no jargon).
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The purpose-fit framework (long-term vs. short-term).
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How we coexist with the bank (priority on A/R only, lockbox, reporting).
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Three banker pain points we solve (DSCR support, overdraft reduction, MCA unwind).
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Quick “send-us-this” intake list for a same-week answer.
Bring a clean leave-behind: a single page with (a) a simple diagram of bank cash-out + factoring, (b) sample 13-week cash-flow showing the new mortgage payment and a factoring advance line, (c) your intake checklist.
The co-sell package (how to present it in the room)
Step 1: Bank cash-out (refi/HELOC/CRE) covers lump-sum needs—tax arrears, MCA payoff, equipment, build-out.
Step 2: Factoring covers recurring gaps—payroll, materials, supplier discounts while invoices age.
Operating result: steadier cash, better DSCR, fewer overdrafts, and the owner keeps the house insulated from day-to-day volatility.
Credit hygiene matters to bankers. Say this out loud:
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“We file UCC on A/R and proceeds, carve-outs in any borrowing base, and provide monthly aging, turns, and dilutions.”
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“We’ll sign a customary intercreditor, recognize your lien on non-A/R collateral, and send lockbox visibility.”
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“No term debt, no balloons—just self-liquidating working capital.”
Conversation cues bankers love
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“We keep clients bankable by eliminating daily-draft cash advances and replacing them with transparent, collateral-based financing.”
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“Our funding is governed by eligibility and verifications, not appraisals—so your deal doesn’t hinge on soft comps.”
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“When your borrower contemplates cash-out, we stabilize the 13-week cash-flow so your DSCR underwrites cleanly.”
Case vignette you can tell in two minutes
A light manufacturer sought a $300k cash-out on an owner-occupied building to clear tax arrears and buy a CNC upgrade. Collections had stretched to 50 days, payroll was weekly, and MCAs were nibbling deposits. The bank approved a conservative CRE refi; we installed a $750k A/R line. The refi retired the MCAs and taxes; factoring smoothed payroll and captured 2/10 net-30 supplier discounts. DSCR improved, overdrafts disappeared, and the banker kept deposits and cross-sell. Everyone won—because the products matched the problems.
Compliance posture (so the bank’s counsel nods)
Be explicit: “We are not mortgage lenders; we refer real-estate loans back to you or to a licensed originator. We provide commercial receivables financing only.”
Offer to share your standard intercreditor, sample notices of assignment, and a redacted report pack (aging, concentrations, dilutions). Transparency de-risks a banker’s “yes.”
Follow-up cadence (relationship, not transactions)
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Week 1–2: Meet 5 lenders. Send each a co-branded PDF (triage framework + 13-week template).
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Weekly: Email a 90-second Loom screen-share: “How to spot a factoring-fit 13-week cash-flow.”
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Monthly: Host a 15-minute “brown-bag” at a branch: one slide, one case, Q&A.
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Quarterly: Share a one-page results sheet: deals saved, MCA payoffs avoided, average DSO improvement (no client names).
Pitfalls to avoid (and what to say instead)
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Don’t bash cash-outs. Do reframe: “Great for durable, one-time needs; risky for 45-day gaps.”
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Don’t imply you can “fix” credit with factoring. Do say: “We stabilize cash so the business can perform to your covenants.”
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Don’t be vague on structure. Do show the lockbox, notice, intercreditor in a one-page diagram.
Closing thought you can use in every meeting
“Don’t mortgage the house to fix a 45-day problem. Let your real-estate loan handle the long-term need—and let us handle the 45 days. That way your deal closes, performs, and stays on your books.”
Build five of these banker relationships and protect them with responsiveness, clean reporting, and thoughtful referrals back their way. You’ll become the calm second voice the lender brings into tough conversations—turning cash-out curiosity into steady, two-way referral business for seasons to come
