Asset based lending and loans are a form of commercial credit and these business financial services are offered by Capital Funding Solutions to companies throughout Florida and the United States



Asset Based Loans


Working capital financing . . .  even when your bank says No.
Many times, companies that require asset-based financing have the assets to obtain traditional financing, but are too leveraged to qualify.


Asset-based lending is typically "secured" financing, which means there are assets within a business to be used as collateral such as
  Accounts Receivables
  Inventories
  Machinery and equipment
  Real Estate (land or buildings)





The benefit of asset-based lending is usually far greater borrowing power than can be achieved from a traditional "cash flow" based banking approach.

Typical borrowers
Manufacturers, Wholesalers, Distributors, Dealers, Retailers and Service businesses with $1 million to $100 million in annual sales or total assets of $500,000 minimum

Typical Range of advances based on assets


A/R:

P.O.

Inventory:



Equipment:

Real Estate:

Personal Collateral:


Up to 90% advance on eligible A/R

Usually 60% of material costs plus labor

Raw materials       10 - 60%
Work in progress   10 - 60%
Finished goods      25 - 65%

60 - 75% liquidation / 80% purchase price

70 - 75% of Appraised Value less mortgage

Will be considered if needed

Asset based loans are made on a formula basis on assets. Eligible companies will need to demonstrate 
   A reasonably professional management 
   Good bookkeeping
   A product and business model that makes sense
   Willingness to have assets audited

Who benefits from Asset-based lending?
  Companies experiencing rapid growth
  Highly leveraged companies
  Companies with a short operating history
  Turnaround situations
  Companies with negative cash flow
  Companies with past losses

Terms/Cost
Six months to 3 years.  It is practically impossible to give rates without an evaluation of the company's risk level, loan amount, and assets used.  It will be based on the Prime Rate plus a percentage dependent on the above factors.




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Asset based loans, cash flow funding and working capital financing programs are offered to small and medium businesses in Clearwater Orlando Miami Ft. Lauderdale Tampa and St. Petersburg Florida
www.finance-factoring.com


Capital Funding Solutions, Inc.


Member of the International Factoring Association

 


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