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

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An instance of asset-based finance would be purchase order financing which may perhaps be attractive to a business that has stretched its credit limits with vendors and has reached its lending capability at the bank. The inability to finance raw materials to fill all orders would leave a business operating beneath 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 surplus 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%.

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We like to obtain a more capitalist standpoint of the term "assets". So our bankers may well be in agreement that your tangible and intangible assets can permit you considerable borrowing clout for your business.

Even if your existing bank thinks another way.

For the reason that every corporation has an exceptional set of issues, solutions are based on a mixture 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 keep command of your business, because that's what you do best.
We shape the provision to suit. Since that is what we do best.

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Am I eligible?

Asset based finance could suit:

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

Contrasting other finance, factoring is secured against your invoicing and not your domicile or your business but you will require a business plan.

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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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