Tekloc Enterprises has extended credit to businesses from Newtown Square since 1984. In four decades the single most common thing we see is an owner comparing an honest interest rate against a "1.3 factor" and concluding the second one is cheaper. It usually is not, and the gap is rarely small.
Illustrative arithmetic only. Your terms will differ
Who we are
Tekloc Enterprises is a business credit firm on West Chester Pike in Newtown Square, Delaware County. We have been doing this since 1984, and we are deliberately small — a handful of people, which means an owner who calls speaks to somebody who reads the file.
We are not a bank. We take no deposits, hold no accounts and lend only to businesses. Nor are we an investment firm: we do not manage money, sell securities or give financial advice.
Forty years is long enough to have watched the market change several times, and the change we most dislike is pricing that hides itself. Fees quoted as factors, "cents on the dollar", daily debits, weekly ACH — all of them obscure a number that used to be printed plainly. We would rather show you the arithmetic and let you decide.
Expensive credit is sometimes the right answer. Credit whose price you cannot work out never is.
Four decades in Delaware County
No consumer credit, no deposits
Plus the total repayable, in writing
Serving the Philadelphia suburbs
Our facilities
Each facility is tied to a purpose and a source of repayment. We do not offer open-ended credit against nothing in particular.
Machinery and vehicles that earn from the day they are switched on and retain value if the plan does not survive contact with reality.
Advancing against invoices already issued to creditworthy customers — the direct remedy when the only real problem is a sixty-day term.
A fixed amount over a fixed term with a fixed schedule, so you know on day one what the last payment is and when it falls.
Funding stock or a confirmed order larger than your own reserves can carry, repaid when the customer settles.
Building out a unit or opening a second location — expenditure that lands months before any revenue answers for it.
Replacing daily-debit advances with a term facility, where the arithmetic genuinely improves. We will work it out with you either way.
True cost
None of these are illegal and most are disclosed somewhere in the paperwork. They are simply presented in units that make comparison difficult — which is the point of using them. Once you know what to convert, the comparison takes five minutes.
"1.3" means you repay $1.30 for every dollar. Whether that is cheap or ruinous depends entirely on how long you have to do it, and that number is deliberately not in the quote. Always ask for the cost expressed as an annual rate before comparing anything.
A repayment taken every business day compresses the term dramatically and raises the effective annual cost accordingly. It also removes the cash cushion you were relying on to trade. Two problems, one presented as a convenience.
An origination or underwriting fee taken out of the funds means you receive less than the amount you are repaying interest on. The stated rate then understates what you are actually paying. Check what lands in the account against what appears on the note.
With a factor-priced advance the full amount is generally owed regardless of when you repay, so settling early saves nothing. With an interest-bearing loan it usually does. Ask the question before signing rather than discovering it when business improves.
How it works
What the money is for, what repays it, and by when you need it.
Financials and trading records read by a person, not a scorecard.
Rate, schedule, total repayable and any security, before you decide.
Funds released, with someone who still answers the phone in year three.
Client feedback
I had an offer at a 1.28 factor and thought it was twenty-eight percent. Somebody sat down and converted it to an annual number over the actual repayment period. I did not take that offer, or ours, in the end. I fixed the receivables instead.
We had two daily-debit advances stacked and were drowning in the ACH. It got restructured into one monthly term payment. Not cheap, but comprehensible, which after eight months of watching the balance every morning was worth a great deal.
Forty years in business and they still gave me the total repayable on one sheet of paper at the first meeting. That is not how the last three funders I spoke to operated, and it is why I have been back twice.
FAQ
Get in touch
If you are holding a quote you cannot decipher, bring it. We will convert it into an annual rate and a total repayable, whether or not that leads anywhere with us.