Franklin Advantage Program

Franklin Capital has developed ‘Franklin Advantage’, a unique solution for community banks that delivers attractive yields and an immediate, defensible competitive advantage for C&I financing. This ‘private label’ program leverages Franklin Capital’s 20 years of experience in asset based lending and working capital finance, and its state of the art MIS capabilities. Franklin Advantage enables community bank partners to safely grow their C&I portfolio, while achieving above market yields.

Key attributes of Franklin Advantage include:

  • Franklin Capital’s accounts receivable purchase program is the financing structure through which working capital funding is provided. Inventory and M&E loans are available to accounts receivable purchase program clients either directly or through SBA 7(a) loan programs
  • The bank is the lead lender and Franklin Capital serves as the administrative agent
  • All financial products and services are ‘branded’ in the name of the bank, which sources program financing opportunities in its local market
  • The bank and Franklin Capital each provide 50% of the funding, with the bank having a senior, ‘first out’ position
  • Franklin Capital is responsible for underwriting, structuring, documentation, credit management and administrative services. For receivable collateral, Franklin Capital directly verifies 70-80% of invoices (by dollar and number) and through it’s state-of-the- art MIS tracks each invoice in real-time. For inventory collateral, each SKU is monitored through Franklin Capital’s proprietary analytics package. All data is available to bank partners 24/7 with secure web-based access
  • The bank retains the primary client relationship, all depository accounts and the ability to cross sell other bank products and services, including any real estate loan opportunities
  • Yields to the bank exceed traditional C&I loans while offering competitive rates to the targeted small and mid-sized business market
  • Franklin Advantage meets or exceeds federal bank regulatory guidelines and therefore program related assets are entirely defensible to bank examiners