What happens to your financing when your bank or factoring company gets bought?
With the news of UMB acquiring Marquette Financial Companies for $182M in stock, some businesses that had their financing provided by Marquette were left finding a new financing option. They had factoring lines with Meridian Bank, a division of Marquette but made the switch to factoring with Universal Funding since their future with UMB was unclear. As UMB does not have a finance division specializing in factoring and it was unclear to their former client if their financial needs would be met by the new managing company.
While some companies will wage the risk and stay with their provider, others have sought out the services of Universal Funding. It will be interesting to see how this plays out for companies who were served by Marqette and Meridian as they transition under ownership of UMB.
“Businesses searching to switch factoring companies is a common practice when financial institutions are merging. A company chooses to use the services of a provider they trust and build a relationship with, so when that is disrupted, it’s a natural to seek the services of another factor,” explains Universal Funding’s CEO Henry Wozow.
It has been four months since the announcement was made and the executive team at Universal continues to keep a close tab on how many former Meridian customers make the shift over to Universal Funding for their business financing needs.