The Asset Based Lending is a combination of both products for pre and post exports and imports. GO2 Fintrade will implement a certified debt borrowing base in relation to the assets of the client's company, usually in the form of inventory or accounts receivable. This amount will depend on the type of asset and the percentage of the advance.
Asset Based Loans, also known as ABL, provide working capital as well as liquidity for inventory, account receivables and any other tangible asset. The loan structures are typically in the form of a revolving lines of credit (LOC).
Our risk credit analysts will appraise the equipment and machinery and the loan size will be determined by the loan to value (LTV) ratio.
Eligible account receivables (AR) aging is underwritten by our credit analysts and an advance rate is applied to the revolving pool. Eligibility of AR is determined by the billed vs unbilled status and how long the AR is outstanding.
Advance Rates: 70-90%
Our underwriters will determine a net orderly liquidation value (NOLV) of the inventory and provide and advance rate against this value. Advance rates will vary depending on the type of inventory (ie, raw materials, finished goods, customized products, etc).
Avg. Advance Rates: 50-65% of NOLV
We will order an appraisal on the real estate and use the loan to value (LTV) ratio to determine loan size. It is preferable to lend on owner-occupied real estate when the operating business both owns the real estate and operates from that same location.
POs are considered an asset for some non-bank asset-based. GO2 Fintrade can provide an advance rate against the purchase order value assuming the customers is large creditworthy businesses.
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