Raley Commercial Finance & Leasing and First Source Funding announced they formed First Source Business Finance to fill a market void in the direct focus on and availability of financial services to small and mid-size businesses, especially in the small ticket arena ($10,000 – $750,000).

FSBF was created to answer that need, and will concentrate in certain capital asset segments such as transportation, construction, agricultural, manufacturing, and medical.

The company is launching its operations with the backing of newly created alliances with several banks and private funds throughout the United States. In addition, syndication relationships developed over the last ten years will allow FSBF to place equipment transactions greater than $750,000.

Products to be offered will include leases (TRAC, FMV, First Amendment, and Finance), EFA’s, conditional sale agreements, and private label programs.

Chris Raley and Ray Bradley will manage the company. Raley has 21 years of commercial finance experience including his years with Raley Equipment Finance & Leasing, Transportation Capital and First Prime Capital. Bradley, who formed First Source Funding in 2002, has 35 years of experience in commercial lending and leasing, including senior management positions at GE Capital and Barclays Bank.

FSBF will bring to market a direct underwriting focus on the client, rather than the use of a credit scoring model. “We feel credit scoring is unfair to both client and lender, as in our opinion it can at times allow deserving credits to ‘fall through the cracks,'” said Bradley. “It is exciting to partner with Chris after working together for so many years and to be able to service clients and the referral community who are having increasing challenges funding their operations and transactions.”

Raley noted, “Ray and I have been waiting for the right environment for a company such as this for some time now, and feel the timing is perfect. I echo Ray in my excitement to be involved with him in this, as I cannot imagine a more perfect partner.”