ABL Credit Lines

Advance rates up to 70% of inventory cost and 60% of equipment value. Credit lines ranging from $100,000 to $4,000,000.

What Are ABL Credit Lines?

ABL stands for asset-based lending. What is asset-based lending, you might ask? In the simplest sense, it is any type of lending secured by an asset. What that means is that if the loan is never repaid, then the asset is seized. That seems fair, right? A mortgage is one of the most common asset-backed loans.

But, Wait A Minute. What Is An ABL Credit Line?

In its simplest sense, an ABL credit line is a credit line secured by assets.

Most major banks offer some form of asset-based lending. Almost all major banks offer a number of asset-based solutions for a wide variety of highly advanced financing needs. Flexible asset-based lending solutions are essential to the expansion of business. Credit lines can range from $5,000 to more than $1 billion, and asset-based credit lines can be extensively higher than ordinary credit lines because hard assets provide collateral security for the line of credit. However, many small businesses are recipients of asset-based credit lines, even though their assets are less valuable than those of mid-range and multinational corporations.

What Are Some Of The Advantages Of Asset-Based Lending Solutions?

MEET SEASONAL CASH NEEDS: You may have a healthy business with a positive cash flow, but your business may be prone to slumps during certain seasons. An asset-based credit line can extend you credit to maintain and grow your business even during those slumps.

INCREASE WORKING CAPITAL: Whether it is your task to grow or expand your business, need to meet short-term cash flow needs, purchase finished goods or raw materials, cover work-in-process, or begin financing extended payment terms to overseas buyers, an asset-based credit line can get you the capital to do that.

MERGER & ACUISITION: Asset-based lending is frequently used as a smart way to get funding for new business acquisitions. Sometimes, a business has to buy out a partner or a competitor to get ahead. Businesses sometimes need to grow by going after mergers & acquisitions, and, sometimes, the only way that those kinds of big deals are possible is through an asset-based credit line.

GROWTH: Usually, as a business grows, so does its need for financing. Furthermore, as a company’s collateral increases, its assets further its ability to borrow more cash. A creative and experienced asset-based lender can put together a credit line that will scale with any kind of company.

TURNAROUNDS: Turnaround financing is usually pursued by businesses that are under-performing and not seeing all their potential for income. Asset-based lenders are familiar with this kind of situation, and asset-based financing is perfect for turnarounds since they are tremendously versastile.

These are just some of the things that an asset-based credit line can do for businesses. What can it do for your small business? Don’t be afraid to put your assets on the line if you believe it will help your business grow. Get a trusted financial advisor to take you through the process of procuring a credit line today.

Do you need an ABL Credit Line for your business? If so Click here to visit our lending site.

2014 Asset Based Business Loans

Yes, We Do Inventory Financing:

Advance rates up to 70% of inventory cost and 60% of equipment value
Credit lines ranging from $100,000 to $4,000,000

What Is The Asset-Based Business Lending Process All About?

Credit lines ranging from $100,000 to $4,000,000

Asset-based lending is lending that is secured by a company’s collateral. Things like real estate, equipment, inventory, and accounts receivable are all used as collateral for loans. The lender will take a first priority security interest in the financed assets. It is just one of many ways that a company can secure working capital and term loans. These loans are secured by machinery, equipment, or any other assets the business owns, as well as real estate. Funds can advance based on a percentage of the accounts receivable.

An asset-based loan is usually comprised of a revolving credit line that doesn’t have the common kind of structured repayment plan, and is done an interest-only basis. Funds can be advanced as a percentage of accounts receivable or inventory, usually between 60-85%. There are higher advance rates based upon seasonal fluctuations or appraisal of other kinds of business assets, however; although, not all banks and financial institutions have such flexible lending terms. It is worthwhile pursuing a bank, or department thereof, that specializes in the kind of business you run. You may be able to get a more favorable deal, and you will certainly be working with someone who understands your industry.

What Are The Functions Of Asset-Based Business Loans?

WORKING CAPITAL: The assets that can be applied to a company’s operations are categorized as working capital assets. Sometimes, working capital loans are required to bridge financial gaps throughout the lifecycle of a business. Working capital loans are often divided up and shared by a number of kinds of assets, like accounts receivable, real estate, equipment, and inventory.

CAPITAL EXPENDITURES: Capital expenditures is the cash spent to get, or frequently upgrade, physical assets like machinery and buildings. Capital expenditure is usually referred to as capital expense or capital spending.

BUYOUTS: A buyout is the purchase of a controlling percentage of company stock. With a leveraged buyout, the company who is doing the acquiring uses the least amount of equity possible to buy the other company. The other company’s assets function as collateral for the debt, and its cash flow is then used to retire the debt that is accrued by the purchaser to buy the company.

What Are The Benefits Of Asset-Based Business Loans?

VERSATILITY: Asset-based lending offers instant and ongoing cash flow, and it can be used to buy supplies and materials, keep up with seasonal fluctuations, stay on top of operating and payroll expenses, keep payables current, and so on.

NO BURDENSOME REPORTING: Usually, asset-based lenders require a very small amount of reports like a monthly aging or INV & AR. However, each loan is unique so the reporting requirements will be tailored to each unique loan.

What can asset-based business loans do for your business? Are you having trouble growing or expanding your business? Do you feel stuck in the muck with no capital to proceed? If you have assets, you may be able to secure loans to get your business moving again.

Need WORKING CAPITAL for your business? Click here to visit our lending site.

2014 Business Working Capital Lines

Special Kinds Of Loans

Small businesses often have trouble meeting their cyclical and short-term working capital needs. Special types of loans can be used to finance small businesses during seasonal slumps and fluctuations, finance the immediate costs of doing certain kinds of construction, supply and service contracts, or purchase orders. There are a number of kinds of loans that small business owners can use to maintain the existence and growth of their small businesses.

Working Capital Lines

The working capital line is a revolving line of credit (and it can sometimes go up to millions of dollars) that offers short-term working capital for small businesses, and there are a number of financial institutions fluent in these types of loans. They are not exotic or unique. They are not difficult to comprehend. These kinds of loans ensure that wheels stay greased on small businesses – so that businesses can keep operating and growing. Businesses that typically use these lines offer credit to their customers or have possession of inventory as their biggest asset. Disbursements are often based on the sale of inventory or the size of a borrower’s accounts. Repayment then comes from the sales of inventory or the collection of accounts receivable. The actual structure will be negotiated with a lender. There may be additional monitoring and servicing of the collateral, and the lender may charge additional fees to the borrower.

Seasonal Line Of Credit Program

A seasonal line of credit program can help support the process of building up labor, materials, accounts receivable, or inventory beyond the normal usage for spikes or slumps, as in seasonal fluctuations. However, there might be some requirements for the business to get the loan, such as having a one-year history or being able to demonstrated a seasonal pattern. Usually, a financial institution will offer the kind of loan, and they will allow for other types of loans to co-exist.

Contract Loan Program

A contract loan program can finance the cost associated with most purchase orders, subcontracts, and contracts. Proceeds can often be disbursed prior to the work commencing. If it’s used for a single subcontract or contract when all the expenses have been incurred prior to the buyer paying, it usually will not revolve. If it’s used for more than one subcontract or contract, or for subcontracts or contracts where purchaser pays prior to all the work being done, the line of credit might revolve.

What kind of loan is right for your small business? Getting the work capital you need to grow and expand your business sometimes just can’t happen without working capital lines. If your business has had a successful history, and you have assets to use as collateral, it can be very easy to get a healthy working capital line. The problem is when small businesses don’t have many assets or a strong record of success. Those small business owners might find it more difficult to secure a working capital line.

Need a working capital line for your businesses? Click here to go to our lending site NeeboCapital.com

Purchase Order Finance for International Orders

Click to read our case study for Purchase Order Finance

As a business it is important to know whether or not your sales contract will qualify for purchase order financing. First, what is purchase order financing for international orders?

Purchase order financing involves borrowing against the written sales agreement that has been established by the buyer and the seller. The sales contract is also called a purchase order and will detail the product or services that are to be sold by the vendor and will specify the shipping and payment terms, delivery dates, and other information that is relevant to the sale. Financing for purchase orders is available for both domestic purchases and international purchase contracts.

Here are some tips for determining whether or not your purchase order will qualify for financing.

Demonstration that you can Complete the Work

Financing for purchase orders will hinge on the company’s ability to complete the work so that the purchase order will be earned. Showing that you have experience in completing similar types of work will show the lender that you are capable of completing the job that you have been hired for.

Proof the Customer will Pay

Even more important than proving your business will be able to complete the work is proving that your customer is going to pay. You will need to show that your customer is financially able to pay the bill or that they are protected by some type of financial guarantee such as from an international recognized letter of credit from a bank, a bond issuance, or some other type of credit enhancement. This will help prove that you can pay back the purchase order finance loan.

The best customers include governments and companies that are large and publicly traded. A large private corporation can be a valid customer as well. International customers that have their finances validated through a letter of credit from a bank that is recognized are good customers as well.

For a larger construction project a performance bond is often used to help minimize the risk for the customer. This is also a method used to ensure that you are paid for the work that is completed. For subcontractors one of the best ways to handle the situation is to have the payment made to the contractor as a joint check that is paid to both your company and theirs.

International projects will typically have purchase orders that are backed either by a letter of credit or some other type of collateral that is predetermined. Once the purchase order is borrowed against the buyer will not pay the seller directly. This leaves the lender to rely on the seller for repayment.

Is Purchase Order Financing Worth the Cost?

Generally speaking, purchase order financing is only going to be ideal for margins that are more than 20%. In order to calculate your gross profit margin you will divide you anticipated gross profit by total revenue to see if the financing is worth the cost.

Need Purchase Order Finance for your International Orders?
Click Here

Inventory Finance combine with Accounts Receivable Finance

Need Inventory Finance combine with Accounts Receivable Finance?
Click here

Accounts Receivable Inventory Finance is a fundamental form of commercial lending that is collateral based. This type of financing combines elements of short term business loans with secured lending. In the purest form a commercial borrower will use the value of their receivables and their working assets or inventory as collateral to secure financing as a way to produce and market their services and products. Financing is repaid when the inventory is converted to cash. This is done either from direct sales or through collecting accounts receivable notices. Depending on the borrower’s risk profile, the lender will exercise different degrees of control over collateral in order to minimize the risk of the transaction.

ARIF Variations

There have been many variations of ARIF developed over the years. There are some forms of ARIF that will include assets other than inventory and receivables. In addition, the controls over the collateral have been changed and repayment sources are expanded to not only include the conversion of working assets.

This type of loan used to only provide funds to finance inventory, but now can be used for financing acquisitions, restructuring debt, and to hold companies through times of distress. Service organizations, importers, retailers, distributors, wholesalers, and manufacturers all use Accounts receivable inventory finance to meet the needs of their business. While there have been several changes made to this form of financing, it still remains one of the most essential ways for a borrower to leverage their assets in order to get financing.

Why Use Accounts Receivable Inventory Finance?

Many ARIF relationships have a moderate to high risk. A borrower will turn to this type of financing when they are unable to get another type of financing. Borrowers using this type of financing are typically not as financially strong as another commercial borrower. There are some reasons for this, perhaps their company operates in an industry where there is significant seasonality or has a high volatility. Some companies are experiencing a rapid growth and need the money quickly. This type of borrower exhibits a higher risk of default characteristics including:

High leverage
Marginal profitability
Limited cash reserves
Limited working capital
Collateral pools that are constantly changing and whose value could fall quickly.

ARIF Structure

ARIF transactions that are properly structured will limit the risk of default by imposing certain controls on both cash and collateral of the company that has borrowed the money. When the loan is margined properly and prudent control processes and monitoring is applied by the bank, the risk of loss can be less than some of the other types of commercial lending that is available. The key is to minimize the risk. When a borrower poses a significant amount of risk, the lender will need to implement more control over the loan. Lenders have to have a large amount of management expertise including a great understanding of the business that the borrower is in and good reporting systems. In addition, the lender must keep ongoing supervision of the relationship and collateral of the borrower.

Need Inventory Finance combine with Accounts Receivable Finance? Click Here

Holiday Temp Staffing working capital available from Neebo Capital

Need working capital? Click Here

Holidays Bring Boom to the Temp Staffing Industry

When it comes to the temp staffing industry there is a temp job available in each season. Perhaps the busiest season for temp staffing agencies is the fall/holiday season. The reason for this is because many retailers are looking for a temporary boost of employees to help get them through the busiest time of the year. However, the usage patterns for contingent workers will depend on the industry. While retailers hire in the fall, temp jobs in the finance and accounting industry will boom during the spring when tax time rolls around. In the hospitality industry the most temp jobs are found during the summer months when more people are travelling.

Retail Hiring

In the fall, when the holidays start to approach retailers up their hiring to match the demand found in their stores. Macy’s is a large retailer that does a lot of temp hiring during the holiday season. In fact, starting in September the stores will hire nearly 80,000 employees according to statistics. Toys R Us will hire around 40,000 temp employees to help them get through the holiday season.

Logistics Hiring

One of the most seasonal/temporary staffing jobs comes in the field of logistics. Logistics companies such as FedEx and UPS will hire for the holiday season. UPS reports that they will hire around 55,000 employees for the holiday season this year and FedEx reports that it will hire at least 20,000 seasonal employees to help cover the busy holiday season.

In the last week before Christmas, UPS estimates that they will deliver over a 120 million packages throughout the world. Between Thanksgiving and Christmas, FedEx expects to deliver more than 260 million packages around the world. Both of these estimates are up significantly from their projections last year.

Why Companies Hire Temp Workers

There are many reasons why companies choose to hire temporary workers. In fact, while the majority of temporary workers will be hired during the holiday season, there are some companies that hire temps throughout the year. The main reason a company chooses to hire temps is because it is much cheaper labor for the company.

A temporary employee can be paid less than a full time or even a part time employee. In addition, a company does not have to offer temporary employees any type of benefits. The job description for temporary employee’s states that the job is not permanent and for this reason the company can get by with paying the employee less and can terminate the position at any given time.

In the United States, hiring temporary employees using temp agencies is on the rise. Large companies see the benefits of using this form of employment for their business. However, one of the issues with this is that the people working temp jobs are not offered job security in any way. This means that they may have a job temporarily, but can lose it at any time. This can be harmful to the economy overall.

Need working capital? Click Here

Factoring is Great for Large Holiday Orders

holiday factoring — If your business needs extra working capital to get you through the holiday season, factoring is definitely something to consider.

Need working capital to fill Large Holiday Orders? Click Here

Recourse factoring or discount factoring is a way for a business to get immediate and flexible cash flow to help your company restructure, grow, and take advantage of discounts from suppliers for larger purchases or for early payments, or even to use to fund your payroll. There are many businesses that need more cash flow during different seasons because of changes in demands. This is why factoring is great for use when making large holiday orders.

Discount factoring is a business financing method that is widely accepted and is used by many large companies that are very well-known. Discount factoring is cheaper than traditional factoring and is also less restrictive than equity financing. It allows a company access to money without giving up any shares of the company as well as giving you daily and weekly access to availability when requested. In addition, discount factoring can increase and decrease based on the current needs of your business. In addition, you will gain administrative support to help manage receivables without needing more staff.

Discount Factoring: How it Works

There are several companies that provide discount factoring for businesses that have different capital needs. The company that provides the factoring will work out an agreement with your company. The agreement will include terms that will be used for each of the invoices.

Once the agreement has been put in place the invoice will be sent to your customers. Depending on your needs and the factoring company that is chosen, they may send out invoices for you. Your company will receive at least 90% of the invoice immediately. The factoring company will keep a percentage of the fees in order to cover their own expenses.

The factoring company will work with you and your consumer directly to make sure that timely payments are made. This will help streamline your accounts payable department, increase communication with customers, and provide faster feedback on any problems that may occur such as lost and damaged items. This is extremely beneficial during the holiday season.

When it comes to recourse or discount factoring it is important to consider whether or not it is the right solution for your particular business. During the holiday season discount factoring can become quite useful as it will provide your company with the money that it needs in order to fulfil holiday orders.

Factoring Advantages

Another advantage of using discount factoring is that it will provide your company with access to experienced and professional business development officers. These individuals will be able to help you determine what the benefits of factoring are and how factoring can help meet your current cash flow and business needs. Financing specialists will work with you directly to help create a capital solution that will work best for your particular business.

Factoring is not for everyone and as a business you will need to determine which form of discount factoring will be best considering your particular situation. If you simply need extra money to get you through the holiday season, factoring is definitely something to consider.

Need working capital to fill Large Holiday Orders? Click Here

Asset based lending for inventory – sell inventory for cash

What is asset-based lending?

When businesses need inventory, they may turn to asset-based lending. Asset-based lending is a form of lending based on the assets that a business has. These assets are put up as collateral to lenders. If the business can’t pay back the loans, then the assets will be taken by the lender to help repay the loan. Sometimes, businesses need inventory, and they don’t know where to turn to get the funds to buy it. Asset-based lending can help with that issue.

In the simplest definition, asset-based lending is any form of lending that’s based on an asset. What that basically means is that if the loan is not repaid, then the asset is taken. That’s why a lot of small business owners don’t like the idea so much. If their business idea doesn’t pan out, and they put up an asset, and then they have to give up that asset, then they’re in a worse place than they were before, and they may not be able to make a start again. More often, the term is used to talk about lending to big corporations and mid-sized businesses who want to use assets that aren’t normally used in other loans. Usually, these loans are connected to equipment, machinery, accounts receivable, and inventory.

This kind of lending is often done when ordinary routes of getting funds, like selling equity to investors or ordinary unsecured bank lending is impossible. It’s not one of the most common kinds of lending because it puts businesses in a seriously bad position if they can’t repay the loan and have to lose their assets. It’s usually used after the other forms of funding are closed off, for one reason or another. These kinds of loans are usually given because the company was unable to get the capital in the ordinary marketplace or have to get more immediate capital for big project financing. It is often accompanied by high interest rates too, and it can be extremely lucrative for the lending company. One major bank made more money from asset-based lending than they did from any other kind of lending or corporate business.

An asset-based line of credit is often designed for the same function as an ordinary business line of credit – to let the company bridge itself between the time of payments it receives and the ordinary business expenses. The main timing issue usually has to do with what are referred to as accounts receivables – the delay between selling a good or service to a customer and then getting payment for it. Since that gap can be quite large, and the money needed to grow the business needs to be immediate, there are often these kinds of loans to help the business get going and stay going even before they’re received payment.

Need an asset based loan for your business? Click here

Canadian Business Loans | Fast Canadian Working Capital

Canadian business loans are a standard part of doing business in Canada. Lots of small businesses in Canada look to the Business Financial Services to get working capital when they are looking at big growth opportunities or have urgent business needs. Of course, Business Financial Services isn’t the only place to go, but it’s a good example of where to turn. This organization gives Canadian business owners easy and quick access to the capital that they need. With a Canadian merchant cash advance or a Canadian small business loan, you can get anywhere from a couple of thousand dollars to over two million dollars – and in all in less than five business days.

Financing products from this organization are great for Canadian companies, service companies, retail stores, restaurants, and contracting businesses. They help those companies to get additional capital to cover unplanned business expenses, upgrade equipment, buy inventory, and get more capital for anything that they need to grow the business in any way. This organization has more than one decade of funding experience, and they can help you with financed that meets the needs of your Canadian business.

Qualifying for business financing for your business in Canada is easy if you have a service business, retail store, or restaurant, an average $3,000 monthly bank balance, or $4,000 in monthly credit card sales, or you have been in business in Canada for at least nine months. If you meet all those of qualifications, you may be eligible to get financing from that organization. Even if you have a less than perfect credit history, a merchant cash advance or small business loan can be a great alternative to help meet your business financing needs.

You can grow your Canadian business. You don’t need to sit around and wait for financing to happen. You can get a loan if you meet certain criteria.

What is Business Financial Services?
It’s the preferred funding source for new businesses in Canada. There’s a reason why a large number of Canadian businesses have turned to Business Financial Services. It’s been a leader and funding source in the industry for over a decade, and they’ve helped small to mid-size businesses of all kinds to get advertising, renovation, equipment, and inventory. If your business needs a boost in cash flow, and you don’t know where to turn, look Business Financial Services. That organization helps businesses come up with financing solutions for their business clients so that they can thrive in an economy that grows worse and more complicated every day.

While small Canadian businesses may need lines of credit, bank loans, or equipment leases as the kinds of funding solutions they want, today’s economy necessitates very difficult lending standards that have made it way too hard for small Canadian businesses to get the loans that they want. Look to Business Financial Services first and other organizations second when you have a business in Canada that needs a funding source.

Need working Capital? Click Here

Canada Purchase order finance loans – Fast Canadian P.O Loans

Canada purchase order finance loans help businesses in Canada to get the short-term funding they need. They get loans based on the purchase orders they have. If there are a number of customers who have placed orders, who are highly credible, then they can be leveraged to get business loans. Canada purchase order finance loans are a safe way for companies to lend money to small to mid-size businesses.

Purchase order financing is a financing alternative that can be a lifeline when the banks just aren’t lending anything out.

A purchase order finance loan can keep your business going even when you haven’t received the money from your accounts receivable department yet. You can get loans based on the credibility and guarantee of your customers’ ability to make the payments that you are due. The more customers you have, and the more payments you have stacked up, the better deals you can get, and the lower interest rates you can negotiate.

Purchase order financing is a financing alternative that is little-known, and it can be a lifeline that you use when the banks just aren’t lending anything out. For example, if your sales are growing faster than the cash flow can handle, it can be hard to fulfill large orders to big customers. To take care of these orders, you have to get the money from somewhere to manufacture the products that are going to be sold. Once you’ve got your purchase orders in hand, you can often use them to get the kind of loan that your business needs to fulfill those orders, and even expand in other ways.

Purchase order financing is a great solution when you need to get the cash gathered that you need to make your business grow. If you’re not alright with getting loans of any kind, then these loans are obviously not going to work for you. Let’s face it, some businesses just don’t like loans. However, these are some of the safest possible loans you can get. If you’ve already got the purchase orders in hand, you can be virtually guaranteed that you’ll be able to pay the loans back. Plus, you’ll get more favorable interest rates than other types of loans out there.

Purchase order financing isn’t a new thing, but lenders say that interest has blossomed in the past couple of years, because banks have tightened up their lending policies. The usual person to get a purchase order loan is a product wholesaler or product manufacturer who needs to deliver goods to large customers like national retailers or government agencies. For them, purchase order financing is a vital lifeline to help get their products moving and into customers’ hands.

Companies that are familiar with purchase order financing may say that they don’t care about their clients’ credit scores or if their businesses are completely underwater. They may only care about the transaction that they’re putting the money up to finance. If this is the kind of loan that looks good to your business, then there are plenty of companies who will help you out with this type of loan.