asset finance Tonga

Asset based finance is a procedure of providing working capital and loans that are secured by accounts receivable, stock, machinery, equipment and / or your real estate. This class of funding is fantastic for startup companies, refinancing existing loans, financing growth, mergers and acquisitions, and management buy-outs (MBOs) and buy-ins (MBIs).

asset finance Tonga

A case of asset-based finance would be purchase order financing which may well be attractive to a business that has stretched its credit limits with vendors and has reached its lending ability at the bank. The failure to finance raw supplies to fill all orders would leave a business operating beneath capacity. The asset-based lender finances the acquisition of the raw material, and the purchase orders are then assigned to the lender. After the orders are filled, payment is completed to the lender, and the lender then deducts its expenses and fees and remits the surplus to the business. The disadvantage of this type of financing, however, is the high interest typically charged - which can be as high as prime plus 10%.

asset finance Tonga

We like to take a more industrial observation of the expression "assets". So our bankers may well concur that your tangible and intangible assets can allow you ample borrowing capacity for your business.

Even if your existing bank thinks another way.

For the reason that every corporation has an exclusive set of issues, solutions are based on an assortment of asset based finance, cash flow or equity finance. Typically, it would be for raising finance between $2m and $30m. And solutions are provided on both a revolving and fixed term basis.

What's in it for me then?

Continuity of funding is guaranteed.
You keep control of your business, as that is what you do best.
We shape the facility to fit. Since that is what we do best.

asset finance Tonga

Am I eligible?

Asset based finance could suit:

Businesses that sincerely need some ready money. Perhaps you are considering a management buy-out, a buy-in, reorganization, acquisition, refinancing or turnaround prospect.
Businesses well-known for at least a year with turnovers from $5m up to $200m.

Unlike other finance, factoring is available against your invoicing and not your abode or your business but you will need a business plan.

asset finance Tonga

So what do I do?

Write a business plan and send it to us and we will ensure that your business receives the correct financing and in a way that relieves you of so much administration, stress and headaches.

It does not matter what your business does
It does not matter where your business is
It does matter that you get the right finance for your business
Write your business plan and contact us

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