Far West Capital Management

The firm originates accounts-receivable factoring lines, asset-based revolving credit facilities, purchase-order financing, and select inventory-secured loans. Facilities typically range from $250,000 to $15 million and are written against first-position liens on receivables and other underlying collateral. Far West underwrites each deal directly rather than relying on third-party credit-scoring models.

Far West operates as a privately funded balance-sheet lender rather than a third-party LP fund. The principals provide equity capital alongside a commercial bank credit line, meaning the investment committee is risking its own money on every facility it approves. This structure eliminates the duration mismatch and redemption-risk constraints that shape typical private credit funds.

Concentration lies in manufacturing, staffing, government contracting, oilfield services, distribution, and technology services — sectors where receivables are easily verifiable and assignment can be perfected quickly. The firm generally avoids construction financing with progress-billing complexity, healthcare receivables with long adjudication cycles, and consumer-facing receivables.

Harmonson spent roughly a decade at First Capital, a firm that bought distressed asset pools and later grew a factoring platform. He subsequently ran the factoring division for a regional bank in the Southwest, developing expertise in structured working-capital products during a period when bank regulation was tightening post-2008. He launched Far West Capital in 2013 with that direct experience.

The firm manages exposure at both the borrower and account-debtor level, typically capping any single account-debtor concentration at a fixed percentage of total collateral. Facilities are structured with borrowing-base certificates updated daily for larger obligors. Because Far West is a principal investor, it retains tight control over advance rates and reserve formulas.

Occasionally the firm will co-lend alongside a regional bank when a facility exceeds its balance-sheet appetite. A 2023 partnership created a hybrid vehicle that allows the bank to use Far West's underwriting and monitoring infrastructure while extending additional credit to the borrower via a bank-funded layer, effectively structuring a senior-stretch participation.

The core book is concentrated in Texas and the Southwest, where regional banks have meaningfully retreated from small-balance asset-based lending. Far West services national accounts where it can file and perfect a first lien on receivables by UCC filing, but it typically requires the borrower have a nexus to its direct-markets region for site visits and field examinations.