Asset Based Lending - Asset Based Funding - Aset Based Loans
For growing companies, cash flow is critical. As sales grow, you need to manufacture more and need cash to pay your suppliers. However, your money is tied up in receivables and inventories until you can realize them in a few months time. Your clients can't wait that long, and your bank is not willing to increase your credit facility because you are already using most of it. You risk missing sales and, worse, face a possible shortage of funds. This is when you need to turn to a proven asset-based lender like Factoring-Accounts-Receivables. Asset-based lending differs from traditional commercial banking because it relies primarily on the value of your business assets to determine your borrowing potential rather than your last year's overall situation. Asset-Based Lending is more flexible and forward looking. Factoring-Accounts-Receivables can offer you a Line of Credit based on where you plan to be rather than where you were. How much credit you can utilize varies upon the underlying assets. Asset-Based Lending is particularly well-suited for highly-leveraged or undercapitalized companies, firms emerging from a restructuring, seasonal businesses or companies currently going through a buy-out.
Asset-Based Lending is not factoring. You remain in control of your customer relationships and you remain responsible for the collection of your sales. Factoring-Accounts-Receivables does not interfere with your operations but rather helps you improve them.
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ACCOUNTS RECEIVABLE PURCHASING FACTORING QUESTIONS AND ANSWERS |