Most growing companies find they need extra working or investment capital at some time in their life cycle, and commercial loans are available for most types of businesses. If you’re considering incorporating a loan into your financial plan, or the plan of a company you sponsor, in the upcoming year, here are some tips to make the most of borrowing … Read More
How an Asset Based Lender Evaluates Your Accounts Receivable
There are a few terms and concepts that it’s helpful to know when you are applying for an asset-based loan based on your accounts receivable. This knowledge can help you understand what to expect from the process and, ultimately, the terms of your loan facility. How Much Can You Borrow The first thing an asset-based lender will need to determine … Read More
Understanding Equipment Appraisals
Asset-based loans are generally supported by working assets, such as inventory and accounts receivables. However, in some cases, these may be combined with fixed assets such as equipment for increased borrowing capacity. If you have valuable equipment in good condition that is earning income, you may be able to include it in your ABL (asset-based lending) collateral. In this case, … Read More
How an ABL Evaluates your Inventory
Inventory is one of the most important categories of business assets that can be used as collateral for an asset-based loan. When you’re planning to apply for this type of alternative financing, it’s helpful to have some perspective on how your asset-based lender (ABL) looks at the value of your inventory for use as collateral. How Inventory is Valued in … Read More
How Can Inventory Management Affect the Size of Your Asset-Based Loan?
An asset-based lender (ABL) looks at different types of assets in your business that can be used as collateral for a flexible financing solution. The size of the credit facility you can access—your borrowing base—will depend not only on the dollar value of your assets, but also on how well they are being managed to create profit for the company. … Read More
What is Inventory Management & Why is it Important?
Whether you’re a manufacturer or distributor, effective inventory management is critical to the financial health and success of your business in many ways, some of which you may not even have considered before. For example, if you ever need working capital or funding for growth, your inventory could be used as collateral for flexible financing…but only if you know what … Read More
Leadership Series: Growth Mismanagement with Newpoint Advisors’ Ken Yager
In a recent interview, Ken Yager, President, and founder of Newpoint Advisors offered his observations on growth mismanagement in lower-middle-market companies, from his perspective as a turnaround advisor. Yager has 30 years of experience in the turnaround space and has helped more than 100 struggling businesses find their feet again. Six years ago, he founded Newpoint to offer companies a … Read More
Cashflow Series Part 3: Important Cash Flow Ratios
A cash flow statement shows the inflows and outflows of cash for your business. Our Cash Flow Series Part 1 offers information on how to prepare a cash flow statement. Once your statement is prepared, data gleaned from it can be used to calculate specific financial ratios that indicate how liquid and viable your company is. If you are planning … Read More
Cash Flow Series Part 2: How Lenders Look at Cash Flow Ratios
When your company needs additional capital to bridge a transitional period or finance new growth, you may be looking for a commercial loan. It’s helpful to know in advance what kind of company financial information a lender may want to evaluate. Cash flow ratios are not only important to your company, they are also very important to lenders because of … Read More
Cash Flow Series Part 1: How to Prepare Cash Flow Statements
The cash flow statement, or statement of cash flows, is one of the three main financial statements used by companies to keep track of their financial health. The other two are the balance sheet and the income statement. The cash flow statement shows the flow of cash into and out of a company and the uses to which this cash … Read More