Asset Based Lending
Asset based lending refers to revolving lines of credit on accounts receivable, or accounts receivable and inventory. In addition, terms loans are provided and secured by machinery & equipment, and owner occupied commercial real estate.
The typical borrowing base formula is 85%-90% advance on accounts receivable less than 90 days old, and 50%-65% on finished goods inventory. In some cases we can fund more complex scenarios such as advancing on raw materials and inventory in transit/on the water inventory.
Noble Funding can also provide a cash flow based term loan fully subordinated to any senior secured bank line of credit or asset based line of credit up to $2,000,000. We have two different products. One is a 6-20 month bridge loan up to $2 million, or a 3-5 year term loan up to $500,000. Noble Funding will consult with you to provide the proper structure for your unique circumstances.
- Perfect for high growth companies that do not want their lines of credit capped by a bank, or traditional lender. Asset based credit lines continue growing as your receivables, or receivables and inventory levels rise.
- Personal credit scores of company principals, or time in business requirements for young companies not an obstacle to receive an approval.
- Noble Funding’s asset based lenders will approve companies with weak balance sheets and negative cash flows, but the interest rate would be higher than companies with strong balance sheets and superior cash flows.
- Term sheets issued within 72 hours of receiving financial package.
- Allows our clients to grow their business at a rapid pace.
- Annual interest rates only slightly higher than traditional bank lines of credit, and often accompanied by much higher levels of access to capital.