Capabilities / Alternative Commercial Finance
Comprehensive counsel for a dynamic market.
Alternative commercial finance plays a critical role in providing businesses with access to working capital outside of traditional lending models. Husch Blackwell’s Alternative Commercial Finance team offers deep industry knowledge and strategic guidance to companies engaged in factoring, supply chain finance, asset-based lending, embedded finance, and fintech-driven small and medium-sized business (SMB) finance.
We partner with alternative commercial lenders, fintech platforms, financial institutions, and investors to structure innovative financing solutions that comply with a rapidly evolving regulatory landscape. Our team understands the challenges faced by non-bank financial companies, including licensing, disclosure requirements, and consumer-style regulatory scrutiny in commercial transactions.
Our clients range from early-stage fintechs to well-established commercial finance companies and banks partnering with alternative lenders. We work closely with:
- Factoring and reverse factoring companies
- Supply chain finance providers
- Asset-based lenders
- Embedded finance providers
- Fintech-based SMB lenders
Unlike traditional bank lending, many alternative commercial finance models are subject to emerging consumer-style regulations—even when loans are made to businesses. Our team regularly assists clients with:
- State disclosure laws – Compliance with evolving commercial financing disclosure requirements in California, New York, and other jurisdictions.
- State licensing and registration – Helping finance companies, brokers, and servicers navigate complex state-by-state licensing obligations.
- Dodd-Frank Section 1071 Compliance – Advising on the new small business lending data collection requirements under the CFPB’s 1071 rule.
- Regulatory due diligence and compliance – Assisting in transactional due diligence for mergers and acquistions, debt, and equity financing involving alternative lenders.
- Banking-as-a-Service (BaaS) and fintech partnerships – Structuring partnerships between non-bank lenders and financial institutions.
Husch Blackwell provides full-service legal support to alternative commercial finance companies, with sophisticated experience in structuring transactions, managing risk, and enforcing creditors’ rights. Our services include:
Creditors’ rights and bankruptcy
We help finance companies protect their interests when a borrower defaults, advising on loan workouts, restructurings, receiverships, and bankruptcy proceedings. Our team represents secured creditors, factoring companies, and asset-based lenders in enforcing security interests and recovering assets through litigation, foreclosure, and bankruptcy proceedings.
Mergers and acquisitions
We assist alternative lenders, fintechs, and private equity investors in acquiring or selling commercial finance businesses. Our M&A team conducts regulatory due diligence, drafts transaction documents, and navigates licensing and compliance considerations that are unique to commercial lenders and specialty finance companies.
Equity and debt capital raises
Our attorneys advise finance companies and fintechs on capital-raising strategies, including private equity investments, venture capital funding, and debt financing. We assist with structuring transactions to attract investment while ensuring compliance with state and federal lending laws.
Securitizations and structured finance
We help alternative commercial finance companies package and sell loan portfolios, receivables, and other financial assets through securitization vehicles. Our team structures transactions that enhance liquidity while mitigating regulatory and credit risks.
Escalated commercial collections
When borrowers fail to repay, we help commercial lenders and finance companies recover outstanding debts efficiently and cost-effectively. Our services include demand letters, negotiated settlements, litigation, and post-judgment enforcement actions to maximize recovery.
Our multidisciplinary team provides deal structuring, transactional support, and regulatory guidance to ensure financing solutions are both innovative and compliant. Whether you are scaling a fintech lending platform, structuring a supply chain finance program, or navigating new state disclosure laws, we deliver the legal and strategic support you need to succeed.
Representative Experience
Commercial factoring
- Regularly assist all manner of commercial factoring companies in developing products, preparing legal documents, advising on state legal, regulatory, and licensing requirements, licensing requirements, and preparing financing disclosures.
- Advised major property and casualty claim factoring company expand into over 30 new United States jurisdictions.
- Worked with multiple international factors to expand operations into the United States.
- Handled escalated commercial collections and bankruptcy work for multiple factoring companies.
- Worked with several major factoring companies to create healthcare factoring products.
Supply chain finance and reverse factoring
- Regularly assist supply chain factors in developing products; preparing legal documents; advising on state legal, regulatory, and licensing requirements; licensing requirements; and preparing financing disclosures.
- Advised large supply chain finance company about the applicability of state commercial finance disclosure laws.
- Assisted several international supply chain finance companies on adding products and operations in the United States.
Fintech and embedded finance
- Advised fintech company on developing white label embedded finance product.
- Negotiated multiple fintech SaaS and BaaS agreements, including multiple agreements in the small business finance space.
- Worked with large fintech companies to develop a revenue-based finance product.
- Worked with multiple fintechs and online lenders to expand operations to new jurisdictions through licensing and compliance with various state consumer lending regulations.
- Served as primary outside counsel for large fintech during start-up phase. Assisted with all legal requirements including corporate formation, securities offering, licensing, and regulatory compliance.
- Conducted regulatory and compliance reviews of various small business to business finance customer agreements, as well as marketing, websites, customer communications, and internal policies and procedures.
- Advised lender about the viability of specialized alternative small business finance product.
- Represented online loan company facing license revocation, negotiating less stringent penalties and allowing client to operate while implementing corrective action.