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The core players in bank financing for start ups are Comerica, City National Bank, Square One, and Bridge Bank. Wells Fargo, bless their heart, is always telling startups they are getting I tot he game but can never actually produce a term sheet. The first five I listed are the banks who are likely to give your start up accounts receivable financing but you need to have the receivables to collateralize that loan.
There is another class of lender that provides loan financing to startups which is a little more flexible to use but more expensive. These groups like WTI, Triple Point, and Hercules will do bigger loan sizes and don’t need to be collateralized by the Accounts Receivable. These lenders are lending off of the company’s enterprise value and your ability to raise more equity funding 12–18 months from now.
We go into depth in our Venture Debt page about the various lenders who play well with venture capital portfolio companies. We also have written articles about the best credit cards for startups and the best business banks for funded companies, and checklists on moving banks. Please just don’t pick the random big bank down the street - go with someone who is well capitalized and safe, bonus points if they understand VC funded companies!
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