from Our Asset Based Lending Company
Our Asset Based Lending Solutions…
Sign up for the very best asset-based lending services that money can buy when you do business with Apple Capital Group. With our accessible financing plans in place, you will receive access to the funds you need to successfully operate your business. Contact us today to discuss all your available business funding options.
About Asset Based Lending
Asset based lending or asset based financing refers to loans secured by a wide variety of assets. Businesses can obtain asset based lending by using the liquid, current assets of the company (such as accounts receivable and/or inventory) or the fixed assets of a business (such as plant, property, and equipment) as collateral. Asset based financing relies on the value of the underlying collateral to minimize the loan’s credit risk.
Commercial finance is the term most commonly affiliated with the industry group of asset based lenders that provides all types of asset based loans to business and commercial borrowers. Asset based lenders are sometimes referred to as secured lenders. Apple Capital Group can serve your asset based finance needs with the stability to nurture a long-term relationship.
Professionals, Asset-Based Lending, Equipment Financing Leasing in Jacksonville, FL
Apple Capital Group also provides their asset based lending customers direct access to Apple Capital Group’s wealth of knowledge and resources through its other product lines. Likewise, Apple Capital Group’s approach to asset based finance is tailored exclusively towards business-to-business companies.
Here are a few examples of Asset based Lending:
• Acquisition, Merger or Buy Out
• Corporate Debt Restructuring & Commercial Refinancing
• Business Working Capital
• Lines of Credit
• Invoice Financing
The Asset Based Lending Process
How Does an Asset-Based Line of Credit Work?
Asset-based lines of credit have three main components to them. First, you have the receivables financing portion, similar to a factoring relationship, where you can borrow against invoices and purchase orders. Second, you have equipment and other tangible assets with equity in them that you can borrower against. You will need to get an appraisal on the asset(s) to establish a value. Third, you have inventory on hand. This, of course, is a moving target and can be difficult to determine what the base value is at a given period of time.
Keep in mind that each of the scenarios below may include one or more of the other categories of asset-based lending. This flexibility of cash accessibility makes asset-based lines of credit very attractive in comparison to traditional factoring or bank financing.
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Apple Capital Group Versign
Asset Based Lending Line of Credit with Accounts Receivable Financing:
• Your company provides a product or service to your customer.
• You provide Apple Capital Group with an aged accounts receivable and payable summary.
• Once your debtors are approved, Apple Capital Group will set up an open line of credit up to 85% of the qualifying outstanding receivables.
• Instead of sending your invoices directly to your customer, you send them to Apple Capital Group, where we verify those invoices and stamp them with a notice of assignment.
• Apple Capital Group will then send the invoices on to your customer letting them know to continue to make their payments payable to your company but giving them a lockbox address to send the payments to.
• Your customer submits payment made out to your company to the lockbox number provided.
• Apple Capital Group will collect the payments from the lockbox.
• We will then apply the collected amounts toward the outstanding balance on your line of credit.
Asset Based Lending Line of Credit with Equipment:
• You have a piece of machinery or equipment with some equity.
• You get a professional appraisal done on the equipment to establish a value.
• The equipment is underwritten to determine the ability to liquidate if it becomes necessary.
• Once approved, Apple Capital Group will set up an open line of credit up to 70% of the value of the assets (taking into account any existing liens on the equipment).
• As you pay down the line, you free up additional cash to use at your discretion.
Asset Based Lending Line of Credit with Inventory:
• The value of the inventory on hand is established either from your current balance sheet, third-party verification, or a combination of the two.
• Once the value is established, Apple Capital Group will underwrite the inventory based on the ability to liquidate, if it becomes necessary.
• Once approved, Apple Capital Group will set up an open line of credit up to 50% of the value of the inventory.
• As you pay down the line, you free up additional cash to use at your discretion.
Is an Asset Based Lending Line of Credit Right For You?
In thinking about whether an asset-based line of credit is the right solution for obtaining working capital for your business, ask yourself the following questions:
• Is your business in startup or growth mode?
• Do you have large pieces of equipment or machinery with equity?
• Do you find yourself sitting on your inventory too long, tying up your cash flow?
• Have you been turned down by a bank for financing?
• Do you have weak financials or personal credit issues?
• Do a majority of your debtors pay over 30 days?
• Do you have to be selective in choosing customers because they do not pay on time?
• Do you have equity in commercial real estate but do not qualify for a refinance or do not want to pay the high fees to do so?
• Do you have to scramble at the end of the month to cover your payroll expense?
• Do you have projects that you could be bidding if you were assured that you would have the cash flow needed to take on the additional work?
• Do you want the ability to micro-manage your cash yourself, on a real-time basis, by advancing funds at the exact moment they are needed.
If the answer to one or more of the above questions is “Yes” and your businesses is receivables-based or have equity in equipment, real estate or inventory, then you are definitely are candidate for an asset-based line of credit.
The Apple Capital Group Advantage
Apple Capital Group is a national finance company that provides customized solutions for businesses with working capital concerns. Our flexible asset-based lines of credit allow you to tap into your assets as a resource for required working capital. The success of our business depends on mutually beneficial relationships with our clients. We believe this cornerstone is often talked about, but rarely does a company follow through the way we do.
• Over 25 years of industry experience in designing customized capital solutions for companies just like yours.
• We do not care how long you have been in business—if you can provide us a valid invoice for a product or service, we will finance it.
• We have flexible financing programs, allowing you to combine receivables financing with equipment, real estate, and inventory financing as your individual needs dictate.
• Unlike banks, we offer a non-traditional perspective on financing approval.
• We have in-house underwriting, allowing for fast approvals.
• We make our own credit decisions.
• The bulk of the underwriting is done on your debtors and your equipment, not picking apart your financials.
• No hidden costs or fees. We disclose all of our fees up front so you know exactly what to expect.
• As we do our due diligence on your customers for receivables financing, you will have a free “pre-screening report” on their ability to pay and creditworthiness, giving you valuable information to manage your relationships.
Asset Based Lending Lines of Credit versus Bank Financing
Many companies actually prefer asset-based lines of credit to bank financing, even if they can qualify for a bank loan.
Here are a few reasons why:
• Asset based lines do not require an annual clean up of your account. In other words, unlike banks which generally require you to have a zero balance at least once every 12 months, our lines are open for you to use every day without worrying about zeroing out your balance.
• Asset-based lines require much less collateral than a bank will ask for. Our advance percentages are much higher than the bank offers, meaning you do not have to put up as much collateral to obtain the same amount of money.
• Asset based lines are not subject to routine bank regulatory reviews. We do not have a board of directors that reviews your line each month or quarter and determines that you no longer fit the lending parameters.
• Asset based lines do not key on personal credit histories or credit scores. Our lines are based on the collateral we connect to the transaction, not the credit score or history of the principals.
• Asset based lines allow you to manage your cash flow how YOU want. You only pay for the amount you use, unlike many bank loans where you receive a lump sum at closing and make a fixed payment every month based on the original loan amount.
Apple Capital Group In Action
What Our Clients Are Saying About Apple Capital Group
“I own a small printing company and with the economy the way it’s been, times have been tough. I was having an awful time making payroll and was sure that I was going to have to cut staff soon. When I met with my Apple Capital Group Account Executive, Mark, I really didn’t think he could help me. My credit is awful. Banks won’t touch me. I just assumed they would come here to tell me no and make me feel like I am worthless like my banker did. As Mark was talking to me about my business, he suddenly stopped and asked me about my printing press on the production floor. As it turns out, Apple Capital Group was able to set up a line of credit against my printing press and gave me the capital I needed to meet payroll and weather this storm. I’m so grateful!” -Carol, Owner of a Local Printing Company
“I have been approached by several factoring companies about doing business with them. I needed to fix my cash flow problem, but I am a control freak and did not want to hand over control of my cash flow to a factoring company. This was one of the first issues discussed with Apple Capital Group when they came to visit me. As they explained to me how an asset-based line of credit works, they showed me how I can manage my money real time. I was hooked! I have the cash I need and the control I require. Thanks for listening to me and understanding my individual needs!” -Ron, President and CEO of an Engineering Firm
“I really feel sorry for my Apple Capital Group Account Executive! My situation was so complicated, involving my inventory, purchase orders, some commercial real estate in another state, and 6 pieces of machinery. I was trying to open up a new production facility and had been turned down by the bank and even tried finding an investment partner. Jessica was so patient with me and took the time to put together a plan. I am so busy and often unavailable, so I was constantly amazed at how she always followed up with me. It ended up taking a few weeks to get done, but in the end I have an affordable line of credit and my new facility is being built as I speak. I can honestly say that Jessica and Apple Capital Group surpassed all my expectations of what a finance company can and should be. I highly recommend Apple Capital Group to anyone in need of cash.” -Kathleen, Owner of a Textile Manufacturer
Spotlight On Success
Problem: A business consulting firm has a partner that decides to retire and cash out of the business. This leaves the existing company strapped for cash. The remaining partner wants a long-term solution for their issue but only wants to pay for the cash he needs, when he needs it.
Solution: Apple Capital Group sets the company up with an asset-based line of credit that the business owner can draw on when he sees fit.
Result: The consulting firm weathered the initial storm of not only a lack of cash, but a transition in leadership. Within the last month, they just purchased another consulting company in a key market.
Problem: A computer hosting company realizes that their equipment is getting outdated and they are no longer competitive. They are spending more money on repairs and parts than some of the equipment is actually worth.
Solution: An equipment appraiser determines that a few large mainframes and other equipment that are still in working order, plus numerous receivables. Apple Capital Group was able to finance one of the two mainframes and some other ancillary equipment, along with their receivables to get the cash they need to upgrade their equipment.
Result: They upgraded their equipment and regularly use the line of credit for new technology as it comes out, allowing them to have a competitive advantage.
Problem: An executive recruiting firm has a partner that has overstayed his welcome. He is running off valuable employees and has a buyout clause in place. The other three partners want to buy him out, but do not have the access to cash to do so. They solicit their banker friend for the capital to do so, but to no avail.
Solution: They reach an agreement on the buyout with the fourth partner and agree to pay him an additional fee to allow Apple Capital Group to set up an asset-based line of credit to proceed. The corporate council drafts up the documents of the buyout and Apple Capital Group is able to set the line up in the other three partners’ names only.
Result: The problematic fourth partner was bought out and now has nothing to do with the company. The work environment and company morale has drastically improved.
Obtain the funds your business requires when you sign up for our asset-based lending solutions.
Asset Based Lending