Asset-Based Lines of Credit

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Whether your company needs capital for refinancing, restructuring, or a major acquisition, our asset-based lending platform provides you with customized and flexible financing through fully collateralized credit facilities. We have significant expertise and capital resources needed to respond to diverse financing situations. We offer floating rate asset-based and senior stretch credit facilities to middle-market companies with annual revenues between $10 and $300 million. Our typical asset-based loan is between $10 million and $100 million.

We also specialize in revolving credit facilities starting at $500,000, primarily secured by accounts receivable. We also consider inventory and other assets in some circumstances.

Asset Based Lending vs. Traditional Bank Financing

  • ABL focus on the collateral and liquidity of a borrower's business assets; Banks rely heavily on balance sheet ratios and cash flow projections as loan criteria.
  • Asset Based Lenders can usually provide substantially more funding than can be achieved from a traditional banking credit approach.
  • Asset based lenders are reliable and supportive during difficult economic turndowns; banks are infamous for lack of support in tough times.
  • ABL credit lines do not lock you into either a fixed loan or payment amount.
  • ABL provides greater liquidity and flexibility on use the loan proceeds
  • ABL requires fewer and less stringent financial covenants than traditional bank loans
  • ABL lending criteria is more liberal than traditional banks
  • With ABL prospective borrowers do not have to be profitable or have a minimum net worth.
  • With ABL borrowers pays interest only on the average daily outstanding balance.
  • With bank loans borrowers pay for loan commitments plus compensating balances
  • The cost of ABL is also generally more competitive than a secured bank loan.
  • ABL closely monitor borrowing base collateral and can therefore underwrite loans that are outside the typical lending criteria of most commercial banks.
  • ABLs are much more likely to accept borrowers with high financial leverage and marginal cash flows.
  • With ABL there is normally no monthly principal repayment
  • Unlike banks ABL lenders can increase credit line in the event that you take on a large customer or have a surge in sales.

 

Asset Based Lines of Credit

Well capitalized companies can use their asset base to obtain favourable financing. If you have more than $5 million in current assets it is possible to leverage this in the market place to obtain a line of credit against this, and continue growing your portfolio. We are able to offer this financing for certain qualified mortgage companies seeking to make additional service retained loans. Other asset classes also are considered.

Revloving Credit Facilies

Revolving credit faclities are also available. These facilies are generally smaller asset based laons. These loans can be a combination of financing against accounts receivable and inventory. Generally one could expect to receive and advance rate of 80% against eligible receivables and 50% against qualifying inventory. This is a great financial management tool and you only pay for what you need in borrowrings.

Other Credit Facilites

Other credit facilities are also avaiable. If you have assets that are generating a steady cash stream, we have the ability to help you finance these. Some of the classes of assets where a credit facility could be obtained would be credit card receivables, pools of car loans, resort financing and other classes on a case by case basis. These loans are for very well qualifed borrowers that wish to grow there business to the next level.