The most well-known type of bridge loan is used by individuals to finance closing on a home (or site of a future home) while waiting for a long-term mortgage to be approved. Business bridge loans work the same way and can be used for a multitude of business purposes. What is a Business Bridge Loan? A business bridge loan is … Read More
What Can Be Included in an ABL Facility?
ABL stands for asset based lending. As the name suggests, the heart and soul of these loan facilities are the assets owned by the borrowing company and used as collateral to obtain credit. But it’s not unusual to collateralize a loan. What is so special about ABL facilities? What is an ABL Facility? Unlike a cash-flow facility, where the lenders … Read More
8 Turnaround Tactics You Should Know
Companies can find themselves in trouble for a variety of reasons. Some involve internal challenges like the failure of a major project, poor sales, ineffective financial controls, lack of data for good decision-making. Other reasons can be external, like natural disasters, change in regulations, or economic recessions. No matter why a company becomes distressed, the basic elements of a turnaround … Read More
Public and Private Equity Basics
Equity is the type of additional capital often focused on by companies looking to finance rapid growth. The big advantage to equity is that it does not have to be repaid in the short-term. The major disadvantage is loss of ownership and some control. There are two basic types of equity capital – public and private. Each has its own … Read More
Types of Debt Financing
If you are a private equity sponsor or a company leader with a business that is poised for a new stage of growth, debt financing can be critical to carrying out your strategic plans. There are many loan structures to choose from, depending on the business’ needs and financial situation. There are also different types of lenders, with different qualification … Read More
3 Types of Capital to Grow Your Business
With growth capital, you can: Purchase equipment to increase your production and potential sales. Add employees to increase production, develop and carry out strategic plans. Increase marketing and advertising to help increase sales. Purchase real estate to house expanding operations. Enter a new market or expand your product/service line. Acquire or merge with another company to give your business a … Read More
3 Top Fintech Trends to Watch in 2020
Fintech, or financial services technology, is certainly not a new field. But the pace of technological advancement is moving faster and faster as the 21st century marches on. Today, commercial lenders are getting more and more resources to draw on in servicing clients and structuring deals. Big data and advanced technologies can speed up applications and underwriting, and potentially create … Read More
7 Commercial Lending Tips for the New Year
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