|
Asset Based Lending is when a line of
credit is established for a business. The amount available is based
on all of the combined assets of the company. Assets may include
accounts receivable, inventory, real estate, and office equipment.
Our Asset Based Lending sources offer far more flexibility
than commercial banks. We will customize a program for you that will
combine common sense with good business practices, and without the
FDIC restrictions placed on banks.
How it Works
- The
lender sets up the line of credit for a company.
- The
company notifies the lender by fax or phone when they want
to draw upon the line of credit.
- The
lender deposits the requested amount into the company
business checking account.
- The
lender will send a statement out each month that shows the
activity on the line of credit.
- The company makes a monthly payment for the
interest charged for that month.
|
The Advantages of Asset Based Lines of
Credit
- A line
of credit will provide a company with more cash than a bank
loan. This is done by allowing a higher leverage on the
company assets.
- A
company gets quick access to cash.. A line can usually be
set up in 1-2 weeks. Then funding can occur within 24 hours
of your request.
- A line
of credit is very flexible. A company will draw on the line
only when and for the amount you need.
- It is
cost effective. A Company will pay interest only on the
average daily outstanding balance.
- The interest rate provided is often low,
usually the current prime rate plus a few points.
|
Asset Based Lines of Credit
F.A.Q.s
Q:
What are the available credit lines?
A:
Commercial credit lines are available from $750,000 to $50
million, based on a companies specific needs and
qualifications.
Q: Are there any
application fees?
A: No. Lenders seldom charge
application fees for this service and the lender will
generally assume all related administrative
costs.
Q: What types of interest
rates can a business expect to pay?
A: It
depends on the credit rating of your company. Preferred
customers may receive an interest rate that is similar to
banks. Other companies, with lesser credit may need to pay a
little more.
|
| 
