There are several ways a company can secure a line of credit. One of these could be a line of credit secured by the company’s assets, such as accounts receivables and inventory. With more and more banks pulling traditional lines of credit away from companies, this is a very sufficient way to secure a line of credit again. This form of financing is growing rapidly as traditional banks are tightening their criteria and is always cheaper than factoring. Our funding partners offer the most competitive asset-based lines of credit in the industry.
A local banker gave one of their long standing customers, a 20-year-old business, 6 months to pay off a $3,000,000 line of credit they had with the bank. The business had great receivables and inventory valued at more than $3.5 million dollars. A lender was contacted which immediately offered a 3 year, $3,000,000 credit facility at an interest rate of Prime plus 2, paying off the line at the bank.
|Amount of the Facility set up:||$3,000,000|
|Total time to close:||45 Days|