Funding Services
All lenders are not created alike. In fact, most lenders in the same market segment are very different. They each have different lending criteria relating to cash flow, industry type, time in business, A/R advances, inventory advances, etc. Most companies have no way of truly knowing if they have a revolving line of credit that maximizes their access to working capital, and at the lowest rate of interest. Here at Noble Funding, we know for certain. We ensure our client receives the ideal asset based line of credit to grow their business and achieve greater profitability.
Asset Based A/R only revolving line of credit ($1 million-$25 million+)
If your business does not carry inventory, then a receivable based A/R revolving line of credit should be ideal to maximize your cash flow and expand revenues. This asset based line of credit allows you to borrow 85%-90% of your accounts receivable that are less than 90 days old. This is not a factoring line where you would be selling your receivables to a 3rd party. Instead, you maintain invoicing and collection calls in-house. In addition, an asset based line of credit is far less expensive than factoring. Annual interest rates start at 6% versus factoring which is usually 20%+ annual interest. If your business is currently factoring your invoices, Noble Funding should be able to save you $100,000+ in annual interest expense charges. Please see “Recent Deals” page to see what we’ve accomplished for companies just like yours.
Asset Based A/R + Inventory revolving line of credit ($1 million-$25 million+)
Most lenders tend to shy away from aggressive advance rates on inventory in today’s conservative lending environment, but not all of them. Most banks and asset based lenders usually top out at a 40%-50% inventory advance. Noble Funding has arranged multiple 65% inventory advances for our clients. That extra availability of 15%-25% means a world of difference to companies with many millions of dollars worth of current inventory. When you a couple a high advance rate on A/R (85%-90%) with an aggressive advance rate on inventory (65%) the results are the ideal line of credit for maximizing our client’s access to growth capital.
Noble Funding has also arranged credit facilities for our clients where they can borrow against in-transit inventory. There are only a small handful of lenders that will accommodate this request. Noble Funding arranged a $15 million asset based line of credit that featured an inventory in-transit piece, which ultimately led to our firm beating out competition from multiple direct lenders. Please see “Recent Deals” page to learn more.
Foreign A/R asset based revolving line of credit ($1 million-$20 million)
Corporate reach is expanding globally, and U.S. companies are selling their products and services abroad now more than ever. We have observed that many companies are not able to borrow against their international receivables with their current bank line of credit, or asset based line of credit. Noble Funding can arrange a foreign A/R asset based line of credit through a U.S. entity, or a foreign subsidiary of a U.S. company. The line can be exclusively foreign A/R, or a mix of both domestic and international receivables. Inventory lending is also available in conjunction with this product. Receivable advance rates are typically 80%-85%, but can be higher if A/R credit insurance is utilized.
Medical A/R asset based revolving line of credit ($1 million-$25 million)
Noble Funding arranges asset based lines of credit for large medical practices, imaging centers, skilled nursing facilities, medical laboratories, hospitals, and more. Unlike traditional asset based lending which allows borrowing against receivables up to 90 days old, medical asset based lenders will allow up to 150 days, sometimes as high as 180 days. Acceptable receivables include:
- Medicare
- Medicaid
- Commercial insurance companies
- Private insurance companies
Purchase Order Financing ($500,000-$5 million)
Whether you have a large order to be produced in the U.S. or overseas, as long as the goods are pre-sold and the purchase order is non-cancellable, Noble Funding can finance up to 100% of your cost. Purchase order financing only works if the purchase order from your customer is for a finished good, otherwise it is considered production financing. Purchase order financing will allow your company unlimited growth by increasing revenues without having to burn cash.
