Altriarch Specialty Finance Fund, LP (Altriarch), a leading private credit manager based in Charleston, South Carolina, recently provided US$43.5m in committed capital to factoring companies across the US.
The current economic landscape poses challenges for the factoring industry, with increasing interest rates and rising inflation. As a result, factoring companies face difficulties in managing their balance sheets and are exposed to higher levels of risk. To adapt to this changing environment and remain competitive, specialty lenders are adopting new debt management strategies. In addition, while there are challenges, there are also ample opportunities for factors as banks continue to tighten credit and reduce lending to small businesses in an effort to increase deposits.
