Notes on Specialty Finance

Most allocators who say they hold private credit hold direct lending. I work a different corner of the category. Short duration commercial receivables purchased under UCC Article 9 sits inside specialty finance and behaves nothing like a three to seven year corporate loan. Ali Barkhordar writes from Ultimate Business Capital in Sheridan Wyoming.

Every week I see the same assumption repeated: the business used cash flow financing because the bank said no. I have been in this market long enough to know that framing is wrong more often than it is correct. The bank did not decline them. The bank does not offer this product. Those are two different statements and the distinction matters at the level of the operative legal document.

I pulled the Q1 numbers this week. Five sectors are leading non-bank capital demand across the country, and they're the same five sitting on my desk most days. Here's what I see when I read these files.