Bare Knuckle Asset Based Lending

It's a bare knuckle asset based lending environment with a back to basics approach of pure formula driven structures with reliance on hard assets according to May/June edition of The ABF Journal.

With businesses generating less cash flow and banks still rationing credit, more and more business borrowers are finding that it takes strong accounts receivable and valuable inventory to get a line of credit.

For those business borrowers who don't quite qualify for conventional bank financing, there are two good asset based lending programs being offered by select banks.

The first program is available to qualified business borrowers in the state of California and provides a revolving line of credit up to $1.5 million.

The second program is available to qualified business borrowers nationwide through select SBA lenders and provides a revolving line of credit up to $2.0 million.

Both asset based lending programs focus on accounts receivable and inventory as the primary source of repayment. The all-in rates on these loans are tied to the prime rate and currently range from about 7.75% to 8.75%.

Need help finding the right lender or telling your story the right way for your business? Read "Matchmaking for Business Loans" and give me a call!

Tags : Line of credit , asset based lending , accounts receivable , SBA