Another aspect which had to be understood by the AloStar team was the policies and procedures on which Lenders Funding based decisions. As Luke laughingly put it, “We had to get Harvey and Bob to create a narrative … they had everything in their head we just had to get them to write it down. We spent a lot of time with them getting to articulate how they manage risk, how they underwrite a client, and the lenders with whom they do business. Stories were told, laughter ensued and at the end of the day, it was a good exercise for all of us.”

Harvey puts it this way, “AloStar was the first bank in a long time that understands our concept, understands how secure we are given the fact that we have a generous amount of subordinated debt and low leverage ratios. AloStar took the time to understand us and our business model … everyone from the chairman down took the time to understand the nuances in our business. At the same time, we have dealt with banks our whole lives. We know what to expect from a bank and what we have no right to expect. Most importantly, we knew what they will expect from us without their having to ask.”

The chemistry between Lenders Funding and AloStar Business Credit works because both parties realized early on that they view the world the same way. And while Lenders Funding was looking for a partner that would give them a certain amount of flexibility with their capital, AloStar knew that the management team had the expertise and thus were able to give Lenders Funding that flexibility. The company is well capitalized, diversified and most importantly they communicate effectively. The result is a partnership where each side manages expectations and both sides agree it’s a model fit.

It’s working so well, that Bob proclaims, “If AloStar asked me to wear a sandwich board and walk the streets of San Francisco, I would do it. I’d put my logo on one side and AloStar’s on the other … but I’d do it just the same.”