Baron Capital Bank

 

Baron Capital Bank will work with existing clients to further meet the needs of the Small Cap market.  Sometimes a company is at the cusp of being ready to go public, but if they had a little capital they could increase revenue to achieve a higher valuation.

 

Baron Capital wishes to fulfill the needs of all its clients without sending them elsewhere and possibly losing a client simply because it can’t service their needs. 

 

Baron Capital Bank will offer basic standard business practices to its clients through a Federally Chartered Institution created to not only meet, but exceed the varied needs of our unique clients.

 

From our unsurpassed approach to customer relationships and our tailored services offered, Baron Capital Bank will be a Boutique institution within the Small Cap financial arena.

 

Factoring

 

Factoring is a financial transaction whereby a business sells its accounts receivable (i.e., invoices) to a third party (called a factor) at a discount. In "advance" factoring, the factor provides financing to the seller of the accounts in the form of a cash "advance," often 70-85% of the purchase price of the accounts, with the balance of the purchase price being paid, net of the factor's discount fee(commission) and other charges, upon collection. In "maturity" factoring, the factor makes no advance on the purchased accounts; rather, the purchase price is paid on or about the average maturity date of the accounts being purchased in the batch.

 

Equipment Financing

 

Equipment financing typically involves lenders writing business loans that are secured by pieces of equipment rather than real estate. Lenders do not generally write equipment loans for consumers although in some states loans used to finance solar panels are available to both businesses and consumers. Equipment loans are often insured by government entities that are keen to promote financing opportunities for start-up businesses.

 

Loan Terms - When lenders write loans secured by equipment, the amount financed cannot exceed the collateral value. If the borrower defaults on the loan, the lender can claim ownership of the collateral and sell it to recoup the outstanding debt. Generally, equipment becomes obsolete over the course of time, so loan terms cannot exceed the useful life of the financed equipment. In some instances, the state and federal governments insure lenders against losses associated with borrower default. Consequently, on government-backed loans the lenders are less strict on loan terms.