Asset Based Loan Scenarios

The following are a few examples of our Asset Based Loan service in action

• Distributor of Building Materials
  required capital to buy out partner and refinance present bank loan.
  Solution:  A New lender with higher risk posture created a credit line including a revolving portion based on accounts receivables and inventory and a term loan based on fixed assets. This enabled client to satisfy his partner and present bank, both of which were putting pressure on.
  

  Manufacturer of fashion goods

  required financing to accommodate seasonality of their business. Client had a small bank line based on the owner's guarantee.

  Solution:  A Bank Line was established with a sub-line based on accounts receivable, inventory and letters of credit. This enabled client to borrow on inventory in the off-season to smooth out the peaks and valleys of their previous cash flow. Client was able to achieve a significant growth in sales and profitability.
  

  Manufacturer of Environmental Equipment and Systems

  required a new lender to take-out their current bank loans. The company had previous losses but had a considerable backlog of orders that their bank would not finance.

  Solution:  A new line of credit was furnished with a revolving portion based on accounts receivable and inventory; a term loan based on equipment; and a mortgage on their buildings. This restructuring enabled the company to significantly improve cash flow, process their current orders and return to profitability.
  

  Manufacturer of electronic equipment

  required a line of credit based on the assets of the business with no personal guarantee. All lenders interviewed would not grant the loan without a personal guarantee even though the company was historically profitable with a significant net worth.

  Solution:  A new lender interested in expanding their portfolio in this industry, granted a revolving credit line, based on accounts receivable and inventory, with no personal guarantee by the principals.

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