Accounts Receivable Finance

This form of financing is much like a line a credit from your bank with a few important differences. The main one is that the amount of money that the company is able to borrow is primarily based on a percentage of the total assets under consideration. Typically, Asset Based Lenders lend 80% to 90% on receivables. There is still a credit facility limit, however, the company has to have the eligible collateral to support the borrowing. In most asset-based situations the lender has control of the collections and the relationship can be either disclosed or non-disclosed. There are usually loan covenants with this type of financing.

Inventory Finance

Inventory finance loans give businesses a cash advance on existing inventory. They are usually used in conjunction with accounts receivable financing and are particularly convenient if you need to keep some capital free for expansion or other investments.

Inventory advances are typically 50% of the cost of goods and are often limited to a percentage of the accounts receivable advance. Eligible inventory is often limited to finished goods that are sold and distributed a few times a year.

Equipment Finance

Equipment finance allows your business to buy the equipment, software, and furniture it needs to operate successfully and make a profit. Leasing is a common form of equipment finance that does not tie up cash, receivables, credit cards, or bank lines.

Leasing doesn’t require large amounts of capital and the taxes can be expensed.

Real Estate Finance

Commercial real estate developers and investors turn to this type of financing for everything from renovating a property to purchasing land. It also covers re-leasing buildings and selling upgraded lots.