Small Fleet Trucking Company
Clerical Staffing Agency
18 Years In business & Over 3,200 Clients Funded
Asset Base Finance program for the Canadian Companies
Is your business growing faster than your operating capital?
1st Commercial Credit can provide asset based financing even when banks and traditional lending companies find these arrangements too risky.
We provide two types of asset based funding for Canadian based companies. The best and fastest approvals are for a receivable asset based financing arrangement. it is very easy to evaluate and we can offer a very high advance against the receivable face value.
The other type of financing is a combination of receivable assets, inventory assets and fixed equipment assets. We do not provide real-estate asset lending.
Understanding asset based lending starts with understanding its differences from conventional financing.
Banks advance credit based on the value of tangible assets. The bank’s concern is predominately with physical assets such as cash on hand, real-estate, equipment and machinery. They review the company's sales, its credit rating, its credit history, and then they combine these assessments with a complete review of the company's financial statements and its debt-to-equity ratio.
It's common for banks to establish criteria for capital advances based on a company's year-after-year performance. In fact, most banks stick to assessments that are based on three to five year performance intervals. While banks will review the value of a company's inventory and sales, they don't base their entire decision around these assets.
1st Commercial Credit understands the value of the receivables, and can offer much more than a bank, especially when clients get into a concentration of receivables within a single client.
Step 1. In order for a client to be approved for asset based financing, the business must have several conditions in order to apply.
Sales Revenue & Parameters
1st Commercial Credit has various funding programs for businesses averaging monthly sales revenue from $10,000 a month to $10,000,000 a month. The structure of an asset based financing facility will depend on the credit history of the owners, number of accounts, billing cycle, financial status of the applicant, type of industry, master sales agreements, and proof of delivery documentation.
Accounts Receivable Assets
Our funding program must have a core asset of accounts receivable. The business must maintain a recurring invoicing process with the same account debtors and bill under net 60 day terms.
We will consider inventory asset financing depending on the clients needs. The borrowing base must stay under 25% of the accounts receivable face value.
Fixed Equipment Asset Finance
1st Commercial Credit can provide the business with Asset Purchase of equipment and refinance the assets at a longer term. This is usually provided by an affiliate lender that specializes in the specific equipment to be financed.
Contact Us Today and You Can Enjoy using our funds to grow your business in less than a week