definition of short term finance

Asset based finance is a method of providing working capital and loans that are secured by accounts receivable, inventory, machinery, tools and / or your real estate. This manner of investment is great for startup companies, refinancing existing loans, financing growth, mergers and acquisitions, and management buy-outs (MBOs) and buy-ins (MBIs).

definition of short term finance

A case of asset-based finance would be purchase order financing which may be attractive to a business that has stretched its credit limits with vendors and has reached its lending capacity 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. Subsequent to the orders being filled, payment is made to the lender, and the lender then deducts its charges and fees and remits the balance 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 10per cent.

definition of short term finance

We like to acquire a more capitalist idea of the name "assets". So our bankers might be of the same opinion that your tangible and intangible assets can allow you extensive borrowing clout for your business.

Even if your current bank thinks in a different way.

Because every business has an exclusive set of issues, solutions are based on a blend 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 maintain control of your business, as that's what you do best.
We sculpt the provision to suit. Since that is what we do best.

definition of short term finance

Am I eligible?

Asset based finance could suit:

Businesses that truly need some ready money. Conceivably you're considering a management buy-out, a buy-in, streamlining, acquisition, refinancing or turnaround opportunity.
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 require a business plan.

definition of short term finance

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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