Asset Based Lending allows you to borrow a percentage of your Accounts Receivable, Equipment, and Inventory. All or one of these assets may be utilized in an Asset Based Business Line of Credit. Find out below how your current assets can assist your company in obtaining the capital it needs.
Asset Based Line of Credit with Accounts Receivable Financing:
- Your company provides a product or service to your customer.
- You provide Capital Business Finance with an aged accounts receivable and payable summary.
- Capital Business Finance will set up an open line of credit up to 85% of the qualifying outstanding receivables.
- Your customer submits payment made out to your company to Capital Business Finance lockbox.
- Capital Business Finance will collect the payments from the lockbox.
- We will then apply the collected amounts toward the outstanding balance on your line of credit.
Asset Based Line of Credit with Equipment:
- You have a piece of machinery or equipment with some equity.
- You get a professional appraisal done on the equipment to establish a value.
- The equipment is underwritten to determine the ability to liquidate if it becomes necessary.
- Once approved, Capital Business Finance will set up an open line of credit up to 70% of the value of the assets (taking into account any existing liens on the equipment).
- As you pay down the line, you free up additional cash to use at your discretion.
Asset Based Line of Credit with Inventory:
- The value of the inventory on hand is established either from your current balance sheet, third-party verification, or a combination of the two.
- Once the value is established, Capital Business Finance will underwrite the inventory based on the ability to liquidate, if it becomes necessary.
- Once approved, Capital Business Finance will set up an open LOC up to 50% of the value of the inventory.
- As you pay down the line, you free up additional cash to use at your discretion.
Call or email us today for a custom Asset Based Lending solution using
your Accounts Receivable, Equipment, and Inventory.