Asset Based Lending
Discovery Bank offers a full line of business loans and deposit accounts, but our asset-based lending program sets us apart from other banks. Discovery Bank provides critically needed funding to businesses by helping them collateralize current assets, such as accounts receivables and inventory, or fixed assets such as equipment and real estate. By utilizing the asset based lending approach, a business can tap unused borrowing power for almost any purpose, including: working capital, debt restructuring, seasonal cash shortfalls and real estate acquisition/expansion.
Asset based lending is for growing companies that require working capital loans. Accounts receivable financing gives you a means to convert sales into immediate cash and provides the following advantages:
- Availability grows as your sales increase
- Take advantage of payables discounts
- Borrow money only when you need it, and only pay for the money you use
- Control and management of the company remains yours. Avoid giving up your ownership position to finance growth.
General Requirements
|
Maximum Term |
2 Years |
Collateral |
Secured by current assets; accounts receivable and/or inventory |
Repayment Terms |
Monthly interest payments, principal to be paid upon maturity |
Advance Rates |
Up to 80% of eligible accounts receivable; Advances against inventory will be considered on a case by case basis. |
Rates |
Variable; generally based on the Wall Street Journal Prime Rate plus a Bank determined spread |
Guarantee |
Loans to privately held corporations require the personal guarantee of principals holding 20% or greater ownership interest. |
If you own a business and need capital, the key to getting enough of it might be right there on your shelves, or in your warehouse, or already on your books. Inquire with one of our experienced bankers or contact Discovery Bank today, to determine whether an Asset-Based loan is right for your business. Tap into your unrealized borrowing power today!