financing business purchase

Asset based finance is a process of providing working capital and loans that are secured by accounts receivable, inventory, 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).

financing business purchase

A case of asset-based finance would be purchase order financing which may possibly be alluring to a company that has stretched its credit limits with vendors and has reached its lending capacity at the bank. The inability to finance raw materials to fill all orders would leave a company operating beneath 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 surplus to the business. The drawback of this type of financing, however, is the high interest typically charged - which can be as high as prime plus 10%.

financing business purchase

We like to assume a more industrial standpoint of the expression "assets". So our bankers may well be of the same mind that your tangible and intangible assets can allow you substantial borrowing capacity for your business.

Even if your current bank thinks another way.

Since every business has a distinctive set of issues, solutions are based on a combination 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 secured.
You keep control of your business, as that's what you do best.
We sculpt the facility to fit. Because that is what we do best.

financing business purchase

Am I eligible?

Asset based finance could suit:

Businesses that genuinely need some ready capital. Maybe you're considering a management buy-out, a buy-in, reshuffle, acquisition, refinancing or turnaround prospect.
Businesses established for at least a year with turnovers from $5m up to $200m.

Contrasting other finance, factoring is secured next to your invoicing and not your dwelling or your business but you will need a business plan.

financing business purchase

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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