Asset-based lending
We provide asset-based loans starting at $3 million, including:
- Revolving lines of credit secured by accounts receivable and inventory
- Term loans secured by machinery, equipment, real estate, and intangibles
- Overadvances based on proven cash flow
- Capital expenditure lines
- Debtor-in-possession (DIP) financing
Our clients typically include, but are not limited to, manufacturing, distribution, wholesale, and service companies facing one or more of the following situations:
- Turnarounds
- Rapid growth
- High leverage
- Seasonal sales
- Customer concentrations
- Shareholder buyouts
- Mergers and acquisitions
- Short operating histories (emerging businesses)
Asset-Based Lending Benefits
- Flexibility. We provide companies increased flexibility without the restrictive covenants inherent in most conventional facilities.
- Competitive Advance Rates: We can advance up to 90% on accounts receivable. Eligible receivables include receivables from Canadian and U.S. customers, and foreign accounts when credit insurance is in place. We can also advance up to 50% of cost, and higher, on inventory if the net orderly liquidation value warrants it.
- Customized Financing: Our monitoring of both credit and collateral allows us to underwrite loans that go beyond the lending criteria of most conventional financial institutions. We don’t just close transactions; we help our customers rehabilitate, develop, and grow their businesses.
- Personalized Service: Our relationship teams are focused on providing customers with ongoing attention and service. This commitment to service makes for a thorough understanding of your business, and allows for quick reactions and responses to financing needs beyond the initial transaction.