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Asset-based loans provide businesses with immediate funds and ongoing cash flow in the form of a revolving line of credit based on a percentage of the value of the company's assets, such as commercial accounts receivable and inventory. Businesses pay interest only on the funds they've drawn.
Transaction Size: Asset-based revolving lines of credit typically range from $3 million to $15 million.
Criteria: Most companies qualifying for a First Capital asset-based loan will be B2Bs (business-to-business) in manufacturing, wholesale, distribution or business servicing generating commercial accounts receivable invoices. In most cases, annual sales range between $10 million and $100 milllion.
Certainty of Funding
- Secure access to stable and significant capital from major investors.
- Resources and diligence to close on negotiated deals and grow with our clients as their borrowing needs change.
Speed
- Our flat management structure means our clients have quick access to key decision makers within our company.
- Efficient operations and a reliable source of capital allow us to complete deals quickly and provide timely funding to capitalize on opportunities.
Flexible Loan Structure
- The experience and commitment to become experts in each client's business goals and challenges.
- Expertise in customizing effective and complex financing solutions for a variety of business needs.
At First Capital, our deep industry and credit expertise allows us to structure larger, more complex deals for entrepreneurial companies with sound business plans. We specialize in creating flexible working capital solutions to help businesses in a broad range of industries succeed despite a myriad of challenges. With First Capital as your lending partner, you can rely on the certainty of our financial resources, timely funding to capitalize on critical opportunities, and our ability to craft innovative financing solutions.
To find out if asset based lending is right for you, please contact us.
A commercial asset based loan provides businesses with immediate funds and ongoing cash flow based on a percentage of the value of your company’s assets such as commercial accounts receivable, inventory, business equipment and machinery, and recurring revenue contracts. Funds from asset based finance can be used for day-to-day operating expenses, or as capital for restructuring, turnarounds, mergers and acquisitions and buyouts.
First Capital assigns your business a revolving line of credit based on a percentage of each of the qualifying asset classes. You may draw on your line of credit whenever needed and pay back to increase availability for future use. You only pay interest on the funds you’ve drawn down so overall, it’s less expensive than a term loan.
First Capital can custom tailor an asset based loan that fits your business needs. Asset based finance can be underwritten relatively quickly and easily by First Capital to get you the funding that you need when you need it. Because it is often provided on a revolving line of credit, you draw down only what you need. Asset based loans are generally cost effective and competitive relative to other financial options. Because of First Capital’s expertise and internal resources, we can move faster than traditional financial institutions.
First Capital provides asset based lines of credit to growing small businesses, medium businesses and large companies. Businesses can tap into their assets for working capital to support growth and help fund through seasonal and cyclical periods or turnaround situations. First Capital can provide funding quicker and easier than traditional lending institutions making First Capital the premier choice of businesses that require a higher level of service and flexibility.
Learn more today about how asset based financing can help your business grow or turnaround. Find out why First Capital is one of the fastest growing and largest independent commercial lending companies in the United States. A personalized loan management team – an Account Executive and an Analyst – are assigned to your business and serve as your partners and advocates, closely monitoring the collateral and your business and helping you manage your financial operations. Online reporting allows you access to your account in order to monitor your daily availability to draw down on your line of credit.
To learn more about whether a First Capital asset-based loan is right for you or to get started today, please contact us.