asset management definition

Asset based finance is a procedure of providing working capital and loans that are secured by accounts receivable, stock, machinery, tools 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 management definition

An example of asset-based finance would be purchase order financing which may be alluring to a business that has stretched its credit limits with vendors and has reached its lending capability at the bank. The failure to finance raw materials to fill all orders would leave a business operating below capacity. The asset-based lender finances the purchase 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 charges and fees and remits the balance to the company. The weakness of this type of financing, however, is the high interest typically charged - which can be as high as prime plus 10%.

asset management definition

We like to obtain a more commercial view of the name "assets". So our bankers may be in agreement that your tangible and intangible assets can permit you ample borrowing clout for your business.

Even if your current bank thinks another way.

For the reason that every company has a unique set of issues, solutions are based on a mix 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 hold on to command of your business, as that is what you do best.
We shape the facility to suit. Because that's what we do best.

asset management definition

Am I eligible?

Asset based finance could fit:

Businesses that truly need some ready money. Perhaps you're considering a management buy-out, a buy-in, reshuffle, acquisition, refinancing or turnaround opportunity.
Businesses recognized for at least a year with turnovers from $5m up to $200m.

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

asset management definition

So what do I do?

Compose 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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