Our asset-based lending service affiliate offers working capital credit lines for growth companies. Financing is available for all types of businesses, including service organizations.
Banks tend to look at history in making credit decisions. At Merchant, we look at the management, future prospects and opportunities available to the business. We take the time to understand your business and will come up with a plan to enable you to maximize your profits. We solve the problem of seasonal peak needs and the cash squeeze caused by rapid growth and limited capital.
Funds are advanced within an agreed line, on a revolving basis as a percentage of accounts receivable and, if necessary, inventory: As these assets grow, your availability to borrow automatically increases. Collections from customers are applied to the loan immediately and funds may be borrowed only when required - even on a daily basis. The credit line is sell-liquidating with no fixed repayment schedule. Interest is charged only on funds in use and no compensating balances are required. As a result there are no idle funds in checking accounts. Also, annual clean-ups and most onerous bank covenants are not required.
In the case of asset-based lending, invoices are assigned on a recourse basis. i.e. we do not guarantee payment. If you require such credit protection we can handle your needs in our factoring division or arrange for credit insurance.
We constantly review the client's needs and performance, and are flexible in amending the parameters of the credit lines as required. The size of the credit lines Merchant offers usually ranges from $200,000 to $2 million. However, we can grow beyond the upper limit after some experience with the client, by means of participations with other lenders managed by us. In these cases, you will continue to deal only with Merchant.
Information about collections and current status of accounts receivable collateral is available online at all times.
In addition to the flexibility and customized arrangements to support your financial projection, we offer full-service accounts receivable bookkeeping as well as monthly aged accounts receivable reports, including monthly statements that can be sent to your customers.