Commercial Factor Q&A: Kevin Westfall Discusses Accord Financial’s New Express Factoring Program

Accord Financial made a move to accelerate the time its takes to get working capital to its clients by launching a new division in June: AccordExpress Factoring. Following of its COVID-19 pandemic relief small business loan program, the new program provides funding of up to $2 million within 10 business days. Kevin Westfall, vice president of business development at Accord Finance, spoke with Commercial Factor about the new platform and the opportunities Accord sees in the market.

Why did Accord Financial decide to launch this new business division?

Kevin Westfall: With the onset of the COVID-19 pandemic, we could see that many businesses were struggling. Now, more than ever, business owners need fast and flexible financing solutions. We created AccordExpress to simplify access to capital for Canadian small and medium sized enterprises (SMEs).

What was the process like developing and ultimately launching the platform?

Westfall: With the success of our AccordExpress BCAP program, we could see the benefits to SMEs by being able to provide financing quickly at competitive rates. We knew that we needed to provide a unique solution for the SMEs that had cash tied up in their receivables. We got together as a team and put our efforts toward fixing the biggest issues SMEs are facing with financing: timing and flexibility. It was then natural that AccordExpress Factoring was developed to provide ongoing working capital by offering a fast and flexible solution. 

Will there be a new team in charge of leading this platform?

Westfall: While we have developed a new simplified application and modified some of our underwriting processes, the great part about the launch of the AccordExpress Factoring platform is we didn’t have to make any changes to our existing team. With decades of experience in the factoring industry, we draw on our experience to provide this market-leading solution. We just changed our method to innovate and adapt to the market needs.

What part of the market/size transactions will AccordExpress Factoring target and why?

Westfall: While we haven’t shied away from the upper middle market (our facilities still range up to $20 million), AccordExpress Factoring was developed to provide solutions to the lower end of the middle market. We identified the market as being quite fragmented for those seeking facilities ranging from $500,000 to $2 million. AccordExpress Factoring was designed to provide a fast, flexible and cost-effective solution.

What do you think will set AccordExpress Factoring apart from its competitors?

Westfall: Established in 1978, Accord has built a strong reputation for stability and service and integrity. We are drawing on our strength and experience to provide solutions to earlier stage businesses and/or those that are often overlooked at the lower end of the market. We also have the unique ability to layer in other forms of financing such as purchase order, inventory and equipment financing, all in-house. We also offer over-advance facilities, which sets us apart from most.

What has the initial reaction to the launch been like?

Westfall: The initial reaction from the market has been exciting, which proves the overlooked and neglected lower middle market has been underserved. We are seeing opportunities we might not have otherwise seen if we hadn’t launched the AccordExpress Factoring platform. We have also seen an increase in activity from brokers, which has been most welcomed.

What are your initial goals for the division and how do you and the rest of the Accord team plan to reach those goals?

Westfall: Our short-, medium- and long-term goals are to simplify access to capital for SMEs. By offering fast, flexible and cost-effective solutions, we will win the trust of clients and referral sources alike, which will ultimately drive our success.

Why is receivable financing an attractive way to unlock cash, especially in the current environment?

Westfall: Now, more than ever, businesses are looking for ways to accelerate and streamline cash flow, but as they work through recovery, they can’t afford to take on any more debt. Considered to be off balance sheet financing because they are simply converting one asset (accounts receivable) into another (cash), factoring accelerates cash flow for businesses without having to take on any new debt and/or dilute equity in a challenging time.