Ledgered Line of Credit
Ledgered lines of credit with an ABL pricing structure. For clients who are presently with an asset based lending/bank (ABL line) and would like to get away from the strict requirements but maintain competitive pricing, we offer the Ledgered Line of Credit Product, a very competitive and flexible funding tool secured with your invoices / accounts receivables.
And unlike a traditional line of credit, there are no constant audits required and almost no covenants with respect to ratios, concentration, etc. Competitive pricing similar to an ABL line structure, typically prime + %, plus a service fee. The service fee is charged monthly on the gross amount of invoices, interest is charged on the amount of funds actually drawn, thus controlling the cost of funding.
The process is simple, the company submit invoices, it creates a pool or borrowing base, then draw up to 80% or 85% depending on the advance rate. The client can draw funds, daily, weekly, bi-weekly, or monthly. Funding is based on the value of your receivables, providing constant capital based on sales.
The above program is an affiliate-partner program which is
structured to fit the funding needs of the client, we look at the
overall merits of the transaction, including management and client
base, and subject to due diligence and final underwriting approval.