SERVICES

Asset-Based Lending

LEVERAGE BUSINESS ASSETS TO FREE UP CASH FLOW

Asset-based lending is a form of secured lending that is based principally on the quality and value of your businesses assets. Assets used for this finance facility are receivables form customers world-wide, liquid well-moving inventory, real estate and equipment. Use funds for bank debt refinancing, working capital, growth strategies, acquisitions, shareholder or management buyouts, or recapitalizing your balance sheet.

This solution is well-suited for manufacturers, distributors and service providers with a leveraged balance sheet who need additional working capital. Structured as a revolving line of credit with the timing of advances tailored to your needs. TFS will advance funds based on an agreed upon percentage of the assets’ value.

  • Structured as a revolving line of credit with the timing of advances tailored to your needs.
  • TFS will advance funds based on an agreed-upon percentage of the accounts receivable value.

 

How it works:

The CLIENT sends the invoice to the CUSTOMER.

TFS advances a predetermined percent of the Accounts Receivable to the CLIENT, creating a revolving loan.

When due, the CUSTOMER pays the invoice to the CLIENT.

The CLIENT pays down the revolving loan with TFS.

Advantages:

  • Borrower’s receivables determine how much they can borrow so asset-based lending is the right product for growing companies
  • Higher availability against customer concentrations
  • Highly predictable method of financing for financial planning
  • Offers more flexibility compared to traditional bank lines
  • Funds seasonal changes in working capital
  • Patient capital for companies facing cyclical or operating performance issues
  • Can be used as transitional capital until company returns to bank financing

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