Asset Based Loans - Ken Kaplan

Asset Based Loan Program Parameters

Asset-based financing provides additional financial leverage your company can use to achieve its growth potential and maximize its profitability. The following criteria for financing are intended as general guidelines and are subject to modification depending upon individual circumstances.

CLIENT PROFILE

Geographic Area: National

Type of Business: Manufacturers, Wholesalers, Retailers and selected Service Companies.

Applications:
• Working Capital Growth
• Refinancing/Debt Consolidation
• Restructuring
• Acquisitions
• Recapitalizations
• Mergers
• DIP Financing
• Turnarounds
• ESOP's
• See Recently Completed Deals

Transaction Size: $250,000 to $75 million, or larger

Financial Characteristics:
• Assets that represent adequate collateral values.
• Companies that have moderate to higher financial leverage.
• Historical profitability that is "spotted" to consistent.
• Borrowings to support expansion, where sales and assets outstrip equity growth.
• Realistic projections in line with historical growth and/or acquisitions.

Management: Actively involved, with a proven track record and skills related to the business and industry.

ASSET/LOAN PROFILE

Collateral:
• Short term accounts receivable and/or inventory.
• Fixed assets consisting of machinery and equipment and/or real estate,
in conjunction with revolving current asset loans.
• If you require just fixed asset equipment loans, click here.

Advance Rates:
• Competitively structured and consistent with loan repayment through
collateral liquidation.
• Accounts Receivable - up to 85% of eligible accounts receivable.
• Inventory - up to 75% of eligible (lower of cost-or-market) inventory.
• Machinery and Equipment - up to 80% of appraised orderly liquidation value.
• Real Estate - up to 65% of appraised fair market value.

Pricing: Floating rate over prime and/or LIBOR. Fixed rate pricing is available.

Term: Revolving credit facilities three to five years and fixed asset amortization up to seven to ten years.

Over Advances: On an exception basis, supported by cash flow.

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