Working Capital Financing
Working Capital financing or Asset-Based Lending is a viable alternative
to selling your Accounts Receivable to a Factor. The value of the receivables you hold
are used as collateral to borrow against. You may receive up to 85% of this value
on a revolving basis to provide working capital for your business.
You may also be able to enhance your working capital
by using your Inventory as additional collateral.
Utilizing non-bank financing sources may provide you with more flexibility.
Most bank working capital financing packages require a clean-up period
annually ( you are required to reduce the amount borrowed to zero ),
whereas non-bank lenders do not. As your business grows and your receivables increase,
the working capital package can also grow,
allowing you to obtain financing to match your growth.
© Parallel Options Inc. 2001/2011