Asset Based Financing as low
as Prime Rate plus Admin Fee. Request a
formal quote now! (Revolving
lines of credit using Receivables and Inventory $2.5 Million
Minimum)
Asset Based Lending for Working Capital
1st Commercial Credit offers asset based lending for companies that need to maximize their borrowing capacity using accounts receivable and inventory as collateral. Receivable based financing combined with inventory finance has become a useful tool for many undercapitalized businesses.
Unlike traditional bank debt that relies heavily on balance sheet ratios and cash flow projections as loan criteria, 1st Commercial Credit will evaluate a client's business assets as its primary focus to establish the borrowing base. The result is usually far greater borrowing power than can be achieved from a traditional cash flow banking approach due to our expertise in industry specialization.
Asset Based Lending Verses Bank Financing
The fact is banks prefer to lend on stationary tangible hard assets, and occasionally inventory and receivables are considered as part of the borrowing base but at a low advance rate. 1st Commercial Credit can offer higher advance rates due to our experience in receivable valuation. In the event where the client already has a bank line of credit, an Inter-creditor agreement is made between the bank and 1st Commercial Credit where the receivables are assigned to 1st CC and therefore allows the client to borrow at higher advance rates.
Asset Based Lending Businesses Benefits
The majority of our prospective clients are undercapitalized companies that have good performing receivables and are growing faster than their cash flow intake. Asset based financing works well with manufacturers, distributors and service companies with a leveraged balance sheet whose seasonal needs and industry cycles often disrupt their cash flow.
Please note, asset based lending requires minimum sales volume for consideration.
($2.5 Million)
Asset Based Financing Rates
at 2 points over prime and admin fee. (Rates subject to industry, sales volume and collection cycle.)
[
[
[