financing the business

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

financing the business

An illustration of asset-based finance would be purchase order financing which may possibly be attractive to a company that has stretched its credit limits with vendors and has reached its lending facility at the bank. The inability to finance raw materials to fill all orders would leave a company operating below capacity. The asset-based lender finances the acquisition 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 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%.

financing the business

We like to assume a more capitalist view of the expression "assets". So our bankers might agree that your tangible and intangible assets can allow you significant borrowing power for your company.

Even if your current bank thinks differently.

Because every business has an exceptional 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 certain.
You maintain direction of your business, as that is what you do best.
We contour the provision to suit. Since that is what we do best.

financing the business

Am I eligible?

Asset based finance could fit:

Businesses that genuinely need some ready cash. Perhaps 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 protected against your invoicing and not your house or your business but you will require a business plan.

financing the business

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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