asset based lendingAsset Based Lending is the Solution!

Need additional working capital to grow your business? Borrow it!

Asset-based lending is essentially a line of credit using your accounts receivable as collateral to provide additional working capital for your business. In an Asset Based Lending relationship, Apple Capital Group advances funds to your account against an asset based loan line of credit based on a percentage of your eligible outstanding receivables. We have a lock-box in which payments from your customers are received and credited against the outstanding balance of your asset based line of credit. Unlike factoring, Asset Based Lending offers you the flexibility to manage the timing of your cash advances so you can control your cost of money. Asset-based lending is generally used by businesses in start-up, growth mode, or by businesses experiencing a shortage of cash. It is also used by those businesses currently in a factoring relationship that desire more control of their finances.

Example Availability: Following is a simplified example of the available funds for an
Asset Based Lending line of credit where the company has $1 million of receivables outstanding and has a loan of $400,000 against their receivables:

Outstanding accounts receivable balance              $1,000,000
Less **A/R > 90 days past due (ineligibles)                 (75,000)
Total eligible A/R                                                        925,000
Available to borrow (80% of eligible)                           $740,000
Less the outstanding *LOC balance                           (400,000)
Available to borrow                                                   $340,000

Asset based lending is the solution! Call us today at Apple Capital Group, Inc. at 866-611-7457 to discuss asset based lending solution that is right for you!

*LOC – line of credit
**A/R Account Receivable


Published On: August 31st, 2022 / Categories: Uncategorised /

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