Asset Based Lending

 

asset based lendingAsset based lending or asset based financing, as it is sometimes known. provides companies access to cash that has previously been tied up in "non-liquid" assets.  Generally speaking, there are fewer restrictions than conventional bank financing.

 

Asset based lending provides revolving lines of credit and term loans fully secured by accounts receivables, inventory, equipment, marketable securities and in some instances real estate.

 

A prospective client might expect to receive a line of credit up to 70% - 85% of eligible accounts receivable and 30% -  60% for raw material and finished goods inventory.  These figures may vary per the peculiarities of any given transaction.

The size of asset-based lending transactions varies widely, with twenty million being about the maximum transaction size.

Access Funding Center, Inc. offers a consulting service relevant to asset based lending for manufacturers, wholesalers, distributors, and retailers as well as technology companies, service companies, privately held firms, venture backed enterprises, growth companies, and public companies.

Asset based lending transactions are available to fund acquisitions, re-capitalization, restructuring, refinancing, and turnarounds.

The terms and fees associated with asset based lending transactions vary widely in terms of the size and nature of the transaction itself.

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