Are you facing a tough choice—closing your doors or filing for bankruptcy? When banks reject your application, suppliers demand payment, or payroll gets delayed, the pressure can feel overwhelming. But what often seems like the end is usually just a point where options feel invisible. At Express Business Funding (EBF), we are leaders in alternative financial services. We help struggling businesses find a way forward. We create customized plans that restore access to capital. Our goal is to set the foundation for sustainable business growth. Chief Operational Officer Kevin Fagundes explains how EBF helps clients rebuild financial health with alternative finance.
Key Takeaways
- Many viable businesses are turned away by traditional banks due to risk profiles, CRA arrears, or rapid growth.
- Alternative finance options like asset-based lending and invoice factoring can restore liquidity and stability.
- EBF builds tailored financial solutions that address each client’s unique challenges.
- The goal isn’t just survival—it’s full business recovery, growth, and a strategic return to traditional finance within the broader finance industry.
What Is an “Unbankable” Situation?
“Unbankable” doesn’t mean unworthy. It means a business doesn’t meet the criteria required by traditional lenders.
According to Fagundes, these are the most common types:
Rapid Growth Without Historical Performance
Businesses can “suffer from success” when growth outpaces their credit facilities. Without a track record of high turnover, traditional banks often view them as risky.
Poor Liquidity
Especially common in manufacturing and construction, where capital is tied up in projects. Cash inflows are delayed, creating pressure on day-to-day operations.
Financial Distress
Companies facing CRA arrears or operational challenges may lose investor trust and bank confidence, despite otherwise solid annual turnover. For a deeper look at how professional guidance helps during tough times, read our article on 8 Benefits of Professional Financial Guidance for Businesses in Distress.
Other causes include high debt-to-revenue ratios, insufficient credit history, or poor organizational transparency.
Is Traditional Finance the Only Way?
No—and this is where many business owners make a critical misstep.
Fagundes explains: “We’ve been conditioned to think that banks are the only valid source of funding. But that’s no longer the case. At EBF, we offer multiple services that can be tailored—or blended—to meet the specific needs of each client.”
Examples include:
Blending these tools gives EBF flexibility to build short- and long-term financial solutions that go beyond the rigidity of banks.
What Does a Return to Traditional Finance Mean?
“At EBF, we don’t dismiss traditional finance—we support it,” says Fagundes.
The goal isn’t to replace banks; it’s to get clients back to a place where traditional finance becomes available again.
Here’s how we do it:
Let’s say a business has a poor debt-to-revenue ratio due to declining income but unchanged expenses. They can’t scale up because they lack the funds to course-correct.
- Asset-based lending can release capital from existing equipment or real estate.
- Invoice factoring keeps liquidity flowing to stabilize cash flow.
Together, these services help the business address arrears, stabilize income, and eventually qualify again for traditional loans.
For example, we helped a client in the manufacturing sector who was placed in special loans due to CRA debt. EBF provided a blended facility that included:
- $750K factoring
- $350K revolving loan
- $1.4MM ABL secured against equipment and property
The result? The business restored operations, repaid outstanding debts, and returned to traditional credit facilities.
Choosing the Right Financial Partner
Navigating outside of traditional finance requires caution. Fagundes offers the following tips:
- Do your homework. Research your financer. Ask for references and case studies.
- Understand their intent. The goal should be financial recovery, not dependency.
- Look for customization. Avoid one-size-fits-all offers. Your business deserves a tailored solution.
Frequently Asked Questions
What does it mean to be unbankable? It means your business doesn’t currently meet traditional lending criteria, often due to liquidity issues, growth volatility, or financial setbacks.
Can EBF help a business with CRA arrears? Yes. We frequently work with clients who face CRA debt. We build financial solutions that help them clear arrears and recover creditworthiness.
Do I have to give up equity to access alternative finance? No. Solutions like factoring and ABL don’t require giving up ownership.
How long does it take to secure funding through EBF? Unlike banks, we move fast. Many of our clients receive funding within days, not weeks.
Will I ever be able to go back to traditional banks? Absolutely. Our goal is to help you regain the financial health needed to access traditional credit again.
Conclusion
A bank rejection isn’t the end of the line. It’s a signal that your business needs the right partner to overcome the challenge.
At EBF, we specialize in turning financial setbacks into comebacks. Our tailored approach combines industry insight, flexible funding tools, and a long-term vision for your success.
Ready to explore your options?
Contact Express Business Funding to learn how we can support your business turnaround and guide you back to financial health.
Related Resources:
