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AloStar Business Credit and Lenders Funding: Sharing a Common Vision

Date: Aug 19, 2014 @ 07:00 AM
Filed Under: Lender Finance

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.”

Photo of Harvey Friedman - COO and CCO - Lenders Funding LLC

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.”

Andy McGhee
Vice Chairman | White Oak Commercial Finance
Andy McGhee serves as the Vice Chairman of White Oak Commercial Finance and leads its Lender Finance vertical and is active in the growth of the broader ABL initiatives for the firm. Andy previously served as Founder, President and CEO of AloStar Capital Finance, which he co-founded in 2011. He has over 30 years of commercial banking and asset-based financing experience and has held senior leadership roles at SunTrust Bank, Bank of America and Citicorp. McGhee serves on the Terry College of Business Alumni Board at the University of Georgia. He is a member of the Board of Directors for Piedmont Hospital of Atlanta. Mr. McGhee serves on the SFNet Board of Directors and previously served on the Atlanta ACG Board. Additionally, he is an Elder at Peachtree Presbyterian Church. He received a BA in Economics from the University of Georgia and resides in Atlanta.
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