Secured Line of Credit Loans
You can use your companies paid off equipment and other pledged assets with liquidation value to obtain a secured line of credit up yo ten million dollars that will be available immediately when you need capital to take advantage of certain market trends, hire new people, expansion opportunities or to restructure expensive existing debt.
In asset-backed lending, a business pledges an asset or cumulative assets as collateral in exchange for a line of credit.
The loan may be secured by a variety of assets, such as accounts receivable, equipment, inventory, or commercial property.
Assets that can be pledged include but are not limited to:
Inventory
Purchase Orders
Equipment
Commercial vehicle
Accounts Receivable
Real Estate Equity
How Lenders Value Your Equipment?
When applying for financing secured by your equipment, one key factor lenders consider is the valuation - essentially, what your equipment assets are worth.
There are three main approaches lenders use:
1. Fair Market Value - This estimates what price the equipment could fetch on the open market under normal conditions. It assumes a willing buyer and seller with no pressure. This is the highest potential value.
2. Orderly Liquidation Value - This projects what the equipment could sell for in a "going out of business" scenario over 90-180 days. There is some time pressure on the sale.
3. Forced Liquidation Value - This is the lowest value, based on an urgent liquidation in 30 days or less, like a bankruptcy auction. The compressed timeline severely limits potential buyers.
Our asset based lending partners are experts at everything equipment. With over 90 years of finance experience, they take the time to understand your specific equipment and situation.
Together, we determine the most appropriate valuation method so you can access the maximum eligible financing amount.
You can use your companies paid off equipment and other pledged assets with liquidation value to obtain a secured line of credit up yo ten million dollars that will be available immediately when you need capital to take advantage of certain market trends, hire new people, expansion opportunities or to restructure expensive existing debt.
In asset-backed lending, a business pledges an asset or cumulative assets as collateral in exchange for a line of credit.
The loan may be secured by a variety of assets, such as accounts receivable, equipment, inventory, or commercial property.
Assets that can be pledged include but are not limited to:
Inventory
Purchase Orders
Equipment
Commercial vehicle
Accounts Receivable
Real Estate Equity
- Loan amounts to $10 Million
- Rates start at 9.99%
- Terms to 5 years
- Up to 75% LTV based on auction value
How Lenders Value Your Equipment?
When applying for financing secured by your equipment, one key factor lenders consider is the valuation - essentially, what your equipment assets are worth.
There are three main approaches lenders use:
1. Fair Market Value - This estimates what price the equipment could fetch on the open market under normal conditions. It assumes a willing buyer and seller with no pressure. This is the highest potential value.
2. Orderly Liquidation Value - This projects what the equipment could sell for in a "going out of business" scenario over 90-180 days. There is some time pressure on the sale.
3. Forced Liquidation Value - This is the lowest value, based on an urgent liquidation in 30 days or less, like a bankruptcy auction. The compressed timeline severely limits potential buyers.
Our asset based lending partners are experts at everything equipment. With over 90 years of finance experience, they take the time to understand your specific equipment and situation.
Together, we determine the most appropriate valuation method so you can access the maximum eligible financing amount.
** Approvals are based on any equipment that the lender deems viable. An appraisal will be ordered and LTV's are generally based on the auction value of the equipment that will be pledged as security on the loan
