Merchant Financial
Our Asset Based Lending affiliate offers working capital credit lines for growing companies. Financing is available for all types of businesses, including service organizations.
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 upon line of credit, on a revolving basis as a percentage of accounts receivable and, if necessary, inventory. As these assets grow, your availability to borrow automatically increases. 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. In addition, 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 affiliate 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 $5 million. However, we can grow beyond the upper limit after some experience with
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. We also offer monthly aged accounts receivable reports and monthly statements that can be sent to your customers.