In an attempt to aid the expansion of small business in the U.S. Ohio credit unions are launching a program that will give businesses statewide use of a factoring tool that had been in a pilot program with the Nowaccount Network Corp. The Ohio Credit League is sponsoring the marketing push, according to Biz Journals.
The program pays small businesses immediately, effectively purchasing the receivable and taking a fee.
“We do tend to attract more startups, smaller businesses,” said Noaccount Chief Lending Officer Robert Myles.Atlanta-based Nowaccount raised $2 million in April to fund its own growth. For more on the four-year old company, check out this feature from the Atlanta Business Chronicle.
Central Ohio’s second largest credit union, Telhio with 46K members began offering the service during the summer of 2013 as part of the pilot. At press time, it has 40 small business users signed on.
