The financing is based on asset value and funding needs is covenant-lite, quick, flexible and creative.

For Accounts Receivable funding click HERE

Staffing companies
Freight / Transportation
Almost any good receivable

Industries Serviced
Companies with hard tangible assets in:

  • ✔ Manufacturing
  • ✔ Transportation
  • ✔ Oil and Gas Services
  • ✔ Real Estate – pre-development, construction, term
  • ✔ Retailers and Distributors

Asset Based Loans:

Loans secured against accounts receivable, inventory, equipment or other company assets.

Definition of ‘Asset-Based Lending’
A business loan secured by collateral (assets). The loan, or line of credit, is secured by inventory, accounts receivable and/or other balance-sheet assets.
Also known as “commercial finance” or “asset-based financing”.

This type of loan is often used to meet various cash flow needs like meeting payroll or building inventory. Interest rates on these loans, as you can imagine, are less than interest rates on an unsecured loan or line of credit because if the borrower defaults the lender has the ability to attach assets and attempt to recoup their lending costs.

Inventory Financing:

Funding is available for up to 100% of inventory purchases. It can be in addition to existing financing or to replace your current lender.

Definition of ‘Inventory Financing’
A line of credit or short-term loan made to a company so it can purchase products for sale. Those products, or inventory, serve as collateral for the loan if the business does not sell its products and cannot repay the loan. Inventory financing is especially useful for businesses that must pay their suppliers in a shorter period of time than it takes them to sell their inventory to customers. It also provides a solution to seasonal fluctuations in cash flows and can help a business achieve a higher sales volume by allowing a business to acquire extra inventory to sell during the holiday season.

Lenders view inventory financing as a type of unsecured loan because if the business can’t sell its inventory, the lender may not be able to either. This reality may partially explain why, in the aftermath of the credit crisis of 2008, many businesses found it more difficult to obtain inventory financing.

Criteria
To help Canadian companies in temporary financial difficulty or require additional capital for growth or other short term needs. The clients are established, mid-market companies with strong management. A clear exit strategy (IPO or refinancing) must be in place that allows for the funds to be repaid within 6 to 36 months.

Cost and Term
The rates are consistent with the risk profile of the transaction. The term is up to three years, with no penalty if repaid prior to maturity.