Stride Bank Funds $15MM Facility Using Jack Henry’s A/R Financing Program
Stride Bank leveraged Jack Henry Lending’s accounts receivable financing program, BusinessManager, to fund a $15 million credit facility for a third-party pipeline inspection company.
The pipeline inspection company approached Patty Potteiger, senior vice president at Stride Bank, last year looking for a non-traditional credit line to improve cash flow and rebound from the impact of the COVID-19 pandemic. The business chose to receive financing through Stride Bank. Using A/R financing, the business expedited the deployment of staff for jobs.
"Through Jack Henry's accounts receivable financing program, we have been able to provide easy, quick access to cash for local businesses that need it, especially during these tough times,” John Duffy, senior vice president at Stride Bank, said. “This pipeline inspection business needed funding to revamp operations and support their growth. A traditional line of credit didn't give them the advance rate needed to support their growth. By partnering with Jack Henry, we delivered the funds they needed to send staff out in the field, supporting our local community while creating a strong revenue source for our institution. The BusinessManager program made it extremely simple for the business to upload important information and communicate it securely to us digitally, thus resulting in a great customer experience.
"Jack Henry has been a strong partner in helping Stride Bank support our local community. BusinessManager gives us comfort and confidence in our loans as businesses emerge from the pandemic because we can manage risk in real time. Previously, by the time we would receive the requested financial materials from borrowers, that information was outdated. With the digital access and timely updates provided through BusinessManager, we have greater, more immediate visibility into our borrowers' financial activity, as well as our overall portfolio health."
"Businesses across the country are struggling and they often don't know where to turn when they're not an ideal fit for a traditional line of credit,” Terry Renoux, head of Jack Henry Lending, stated. “With BusinessManager, financial institutions like Stride Bank are able to provide reliable financing during times of need. And the institutions benefit from expanding relationships and gaining new sources of revenue. As we look to help our local communities rebound, we are proud to equip banks and credit unions with the tools necessary to meet businesses' specific financing needs while effectively managing risk."