Asset Based Lending

Loan Village offers asset based lending for companies that need to maximize their borrowing capacity using accounts receivable and inventory as collateral. Receivable based financing combined with inventory finance has become a useful tool for many undercapitalized businesses.

Unlike traditional bank debt that relies heavily on balance sheet ratios and cash flow projections as loan criteria, Loan Village will evaluate a client's business assets as its primary focus to establish the borrowing base. The result is usually far greater borrowing power than can be achieved from a traditional cash flow banking approach due to our expertise in industry specialization.

The fact is banks prefer to lend on stationary tangible hard assets, and occasionally inventory and receivables are considered as part of the borrowing base but at a low advance rate. Loan Village can offer higher advance rates due to our experience in receivable valuation. In the event where the client already has a bank line of credit, an Inter-creditor agreement is made between the bank and Loan Village where the receivables are assigned to Loan Village and therefore allows the client to borrow at higher advance rates.

What kind of businesses benefit with asset based lending? The majority of our prospective clients are undercapitalized companies that have good performing receivables and are growing faster than their cash flow intake. Asset based financing works well with manufacturers, distributors and service companies with a leveraged balance sheet whose seasonal needs and industry cycles often disrupt their cash flow.

Please note, asset based lending requires minimum sales volume for consideration.

$2.0 million up to $30 Million - Manufacturers, Distributors, Service Providers

$250,000 and up to 30 million for Medical Providers with receivables owed by Medicare, Medicaid or HMO's