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Bridgeview Commercial Finance Services
Asset-Based Lending
Asset-based lending can provide your business with the greatest and most immediate form of working capital to grow your business. Unlike traditional financing that is determined by balance sheet ratios and cash flow projections, asset-based lending uses actual business assets as the primary criteria for determining lending approval. As your assets grow, so can your borrowing power.
Parameters of an asset-based lending relationship look something like this:
| Company Size: |
$500,000-$50,000,00 |
| Gross Availability: |
$100,000-$15,000,000 |
| Type: |
Working Capital and/or Equipment Financing. |
| Interest Rate: |
Typically 2% to 8% over Prime. |
| Term: |
Up to 2 years for account receivables and inventory. Up to 5 years for equipment and owner-occupied real property. |
| Purpose: |
Account receivable invoice purchasing and inventory financing Term: 1-2 year commitment period. |
| Advance Rate: |
Up to 85% for eligible receivables. Up to 65% for eligible inventory. Up to 100% for new or used equipment (depending on depreciation or liquidation value) |
| Fees: |
Limited to actual out-of-pocket expenses only. |
Factoring and Account Receivable Financing
The concept of factoring has been around for ages, and is viewed as a respectable way to help a business manage its ongoing cash flow. Here's how it works. Your business selects account receivables or invoices for BCF to purchase. In return, we provide you working capital based on a percentage of the face value of those receivables. Through this arrangement, your business becomes more efficient, your costs decrease and you have more time to focus on operating your core business.
BCF provides a full array of account receivable financing using traditional factoring methods. Our typical factoring relationship looks something like this:
| Company Size: |
$500,000-$50,000,000 |
| Gross Availability: |
$100,000-$15,000,000 |
| Type: |
Working Capital Financing/Factoring. |
| Interest Rate: |
Typically a fixed rate (0.50%-0.75%) for every 10 days or Variable rate (0.25%-2.00%) per funding +Prime + 1% to 4%. |
| Purpose: |
Account receivable invoice purchasing and inventory financing Term: 1-2 year commitment period. |
| Advance Rate: |
Up to 85% for eligible receivables. |
| Fees: |
Limited to actual out-of-pocket expenses only. No mark ups! No termination fees. Relationships can be terminated with 10 day notice. |
| Reserve Requirements: |
No formal reserve policy. Cash in transit less than 2%. |
| Float Days: |
No float days imposed on account. |
| Notification: |
We do not require a notification on your invoices - you continue to bill customers under your own company's name. |
| Other Services: |
Equipment lease financing, cash management, general banking services. |
Lease Financing
For existing BCF customers looking to purchase new or additional equipment or machinery, lease financing may be an attractive option. Leases are generally for no more than five year terms and can cover purchases up to $250,000.00 for a single item. Lease terms are at very competitive rates. One of our finance professionals will be pleased to discuss if this financing solution is right for you and your business. |
