is typically structured as a revolving line of credit and secured by a company's accounts receivable, inventory, equipment, and/or real estate.
He added that borrowers are also driven to asset-based financing
structures because "they like the efficiency of the financing," and that there is little or no float at the end of each quarter.
allows assets to be leveraged from within a target business, offering a highly flexible financing option that can provide the necessary capital required to complete the transaction.
RELATED ARTICLE: Why Consider Asset-Based Financing
From his perspective, he said he's seen a marked increase in the number of home furnishings companies turning to asset-based financing
. HFN spoke to Lucas about the financial climate that is driving this trend.
Factoring--a method of asset-based financing
in which receivables are purchased or used as collateral--can provide immediate cash.
In 1992, he joined Gordon Brothers and founded GBFC a specialty commercial finance company focused on asset-based financing
White Oak Asset Finance, GP (WOAF) provides asset-based financing
solutions including invoice discounting, supply chain finance and inventory finance to small- and middle-market companies throughout the United States.
Cattles Invoice Finance in Birmingham helped structure the deal as well as providing nearly pounds 1 million in asset-based financing
In another case, a company obtained asset-based financing
for the buyout of a $40-million distribution company and was able to reduce its loan by 40 percent within 10 months after the transaction by reducing inventory levels significantly below the historic precedent.
Bibby Financial Services (BFS) is supporting Houston-based United Plastics Group (UPG) with an asset-based financing
facility, the company said.
'Bibby Financial Services is a leading finance company known for our superior customer service and ability to provide large factoring facilities and asset-based financing
at competitive rates,' said Barry Kastner, Bibby Financial Services executive vice president.