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.
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.
Contact us today to discuss if Asset based lending is appropriate
for your business.
Factoring
Informational News Articles
Selecting an
Invoice Factoring Company: Best Practices, Part I
Selecting an Invoice Factoring Company:
Best Practices, Part II
Selecting an Invoice Factoring Company: Best
Practices, Part III
View and print entire article pdf format (click below)
Invoice
Factoring - Best Practices for Selecting a Commercial
Factor
Supplier Guarantee Funding:
An alternative to Purchase Order Financing (PO Funding) that
offers more flexibility and less expensive funding to
businesses.
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