business finance limited

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

business finance limited

An illustration of asset-based finance would be purchase order financing which could be eye-catching to a company that has stretched its credit restrictions with vendors and has reached its lending capability at the bank. The failure to finance raw materials to fill all orders would leave a company operating under 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 made to the lender, and the lender then deducts its expenses and fees and remits the surplus to the company. The drawback of this type of financing, however, is the high interest typically charged - which can be as high as prime plus 10%.

business finance limited

We like to assume a more capitalist view of the label "assets". So our bankers may have the same opinion that your tangible and intangible assets can tolerate you considerable borrowing capacity for your business.

Even if your existing bank thinks in a different way.

Because every company has an exceptional 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 assured.
You preserve command of your business, because that is what you do best.
We figure the facility to fit. Because that's what we do best.

business finance limited

Am I eligible?

Asset based finance could fit:

Businesses that genuinely need some ready capital. Perhaps you're 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 secured next to your invoicing and not your residential home or your business but you will require a business plan.

business finance limited

So what do I do?

Put in writing 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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