This is what we have been doing:
- Asset-Based Loans (ABL) – we lend against a company’s invoices and inventory and sometimes other assets. We are targeting credit lines of $1 million or greater. So, AR and inventory need to be greater than $1 million to qualify.
- Trade Credit Financing - this helps company’s that have bank loans that need additional funding to buy inventory. Bank friendly program, since it does not affect the banks collateral.
- Factoring – purchasing A/R to provide financing
- PO Financing – providing letters of credit to purchase inventory using a creditworthy customer’s PO as collateral.
Example of PO Financing: providing a letter of credit for the purchase of gasoline and diesel fuel to ensure payment to the refinery.