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I Advice - Asset-Based Lending: More than Last-Resort Business Financing
I would like to dedicate this article to my father-in-law Alec! His life was the true role model of dedication and loyalty to his customers.He started a little open front fruit and vegetable market that expanded into a family friendly super market. It supported 3 generations and continues to survive against all odds with the big boys. He used to jokingly tell us.... There are 2 rules in customer service.Rule 1. The customer is always right! Rule 2. Refer back to rule 1.Keep this in mind as you read..... "12 Sure-Fire Ways To Improve Your Customer Service Skills" Want to impress your customer? And sharpen your customer service skills?This article should help you to create customer loyalty and subsequently - repeat sales.1. Give your customers more tha
A Different Option than Traditional Cash Flow Financing
Asset-based lending is distinctly different from traditional, cash
There are many marketing and business advisors sharing advice on how to grow your business, make more sales, get more clients ... I know, because when it comes to Internet Marketing, an area I only ventured into 2-1/2 years ago, I have probably tried most of the ebooks, courses and teleseminars available.Today I'm posing a question about what I guess could be considered a "tried and true" online marketing method: Email Marketing.You know, ezines, e-newsletters, permission-based, opt-in email marketing. All of the Internet marketing gurus recommend it, saying "to be successful, you've got to build your list."I've been using Email Marketing consistently for the past 2 years.In that time ...=> I have seen my opt-in rates bounce around from 9% to 59%.=> I have t
In fact, asset-based lending is a $200-billion-plus market, according to the Commercial Finance Association. Users of asset-based lending span a broad range of industries, with manufacturers representing approximately 31% of the total marketplace, followed by wholesalers (28%), and retailers (17%). Based on revenues, the bulk of these borrowers (71%) are under $50 million in size.
The attraction to asset-based lending is obvious. This versatile, cost-efficient debt instrument provides more flexibility than many other forms of traditional financing. Moreover, asset-based lending can provide borrowers with enhanced operational flexibility through all phases of the business cycle.
Understanding Asset-Based Lending
The concept of asset-based lending is relative straightforward: It's simply a business loan or line of credit secured by some type of collateral. The collateral can be any asset the borrower uses in the conduct of his or her business. If the loan or credit line isn't repayed, the asset is taken.
Also called commercial finance, asset-based lending is typically secured by accounts receivables and, less often, inventory. Lenders favor receivables because they are among the most liquid assets, and they're less susceptible to "shrinkage", physical damage and other problems faced by tangible assets.
Accounts receivables that are eligible for asset-based lending generally include receivables from completed sales. Older receivables-those more than 90 days from invoice-and foreign receivables are usually considered ineligible. Eligible inventory typically includes all finished goods and marketable raw materials. Excluded from the list of eligible inventory are works-in-progress, slow-moving or obsolete inventory, and inventory on consignment with customers.
Fixed assets, such as machinery, equipment and real estate, also can be used as collateral against asset-based lending. Companies frequently use fixed assets as the borrowing base for a loan where the payments, schedule and term are pre-set. In addition, non-traditional assets like trade names and intellectual property may be eligible as collateral on a case-by-case basis.
A Different Option than Traditional Cash Flow Financing
Asset-based lending is distinctly different from traditional, cash f
We sure hear a lot about business presentations and all the high-tech tools that people use when pitching their ideas, concepts or business propositions. Recently we have seen on the Donald Trump “Apprentice” Television Series and Martha Stewart reality TV program young entrepreneurial type teams vying for the business and we have seen presentations as the way to pitch their sales to clients.We have watched some disasters as well as some very good business presentations using high-tech devices, video and storyboards. But what if you were in a low-tech business and had to give a business presentation worth $50,000 per month in business? Well, I have been in the mobile fleet cleaning business for 27 years and given many business presentations during that period and before computers even exist
The attraction to asset-based lending is obvious. This versatile, cost-efficient debt instrument provides more flexibility than many other forms of traditional financing. Moreover, asset-based lending can provide borrowers with enhanced operational flexibility through all phases of the business cycle.
Understanding Asset-Based Lending
The concept of asset-based lending is relative straightforward: It's simply a business loan or line of credit secured by some type of collateral. The collateral can be any asset the borrower uses in the conduct of his or her business. If the loan or credit line isn't repayed, the asset is taken.
Also called commercial finance, asset-based lending is typically secured by accounts receivables and, less often, inventory. Lenders favor receivables because they are among the most liquid assets, and they're less susceptible to "shrinkage", physical damage and other problems faced by tangible assets.
Accounts receivables that are eligible for asset-based lending generally include receivables from completed sales. Older receivables-those more than 90 days from invoice-and foreign receivables are usually considered ineligible. Eligible inventory typically includes all finished goods and marketable raw materials. Excluded from the list of eligible inventory are works-in-progress, slow-moving or obsolete inventory, and inventory on consignment with customers.
Fixed assets, such as machinery, equipment and real estate, also can be used as collateral against asset-based lending. Companies frequently use fixed assets as the borrowing base for a loan where the payments, schedule and term are pre-set. In addition, non-traditional assets like trade names and intellectual property may be eligible as collateral on a case-by-case basis.
A Different Option than Traditional Cash Flow Financing
Asset-based lending is distinctly different from traditional, cash
A survey conducted recently by Quint Wellington Redwood, the independent management consultancy dedicated to solving IT-related organizational issues, reveals that for 75% of companies, cost reduction is still the most compelling reason for IT outsourcing. However, outsourcing to reduce costs has a negative impact on commercial innovation. The survey actually shows that too sharp a focus on cost reduction is a clear impediment to innovation. Other findings are that the outsourcing market is continuing to mature and that companies are tending to become more selective in their outsourcing.The major role in outsourcing still played by cost reduction is the most striking outcome of the Quint Wellington Redwood survey. 75% of companies still view outsourcing as the definitive way of enhancing empl
Also called commercial finance, asset-based lending is typically secured by accounts receivables and, less often, inventory. Lenders favor receivables because they are among the most liquid assets, and they're less susceptible to "shrinkage", physical damage and other problems faced by tangible assets.
Accounts receivables that are eligible for asset-based lending generally include receivables from completed sales. Older receivables-those more than 90 days from invoice-and foreign receivables are usually considered ineligible. Eligible inventory typically includes all finished goods and marketable raw materials. Excluded from the list of eligible inventory are works-in-progress, slow-moving or obsolete inventory, and inventory on consignment with customers.
Fixed assets, such as machinery, equipment and real estate, also can be used as collateral against asset-based lending. Companies frequently use fixed assets as the borrowing base for a loan where the payments, schedule and term are pre-set. In addition, non-traditional assets like trade names and intellectual property may be eligible as collateral on a case-by-case basis.
A Different Option than Traditional Cash Flow Financing
Asset-based lending is distinctly different from traditional, cash
Cologne, 12.10. 2004. ICANN accredited registrar Secura announces today,that the company is accepting the registration of za-domains.The co.za-domains are the domains of South Africa. The co.za-domains belong to the popular domains in Africa.You cannot register at .za. If your name is not available at co.za, you can also register at org.za.The com-domain is best for websites that target international markets, while .co.za-domains are best for South African webpages or those with a strong South African reference. This is so because surfer are used to, and you may lose a part of your target group if you deviate from the expected Top Level Domain.Even if you should own a .com domain, it is advisable to register also a .co.za-domain as well. The za-domains are available o
Accounts receivables that are eligible for asset-based lending generally include receivables from completed sales. Older receivables-those more than 90 days from invoice-and foreign receivables are usually considered ineligible. Eligible inventory typically includes all finished goods and marketable raw materials. Excluded from the list of eligible inventory are works-in-progress, slow-moving or obsolete inventory, and inventory on consignment with customers.
Fixed assets, such as machinery, equipment and real estate, also can be used as collateral against asset-based lending. Companies frequently use fixed assets as the borrowing base for a loan where the payments, schedule and term are pre-set. In addition, non-traditional assets like trade names and intellectual property may be eligible as collateral on a case-by-case basis.
A Different Option than Traditional Cash Flow Financing
Asset-based lending is distinctly different from traditional, cash
If you want to make money marketing products and services on the World Wide Web, you must have a consistent look and feel to the pages that comprise your web site. Dreamweaver templates make this easy.Dreamweaver templates relieve you of much of the tedious job of editing individual web pages, because you create the template one time then apply it to initial pages in your site. If you want to make changes alter, you can make them to the template and they are automatically applied to all of the pages that are based on your template.Using Templates is a two step process:1. Create the template. 2. Instantiate the template into one or more actual web documents.So when should you use a template? How do you create it? How do you apply it? How do you make changes to a
A Different Option than Traditional Cash Flow Financing
Asset-based lending is distinctly different from traditional, cash flow-based financing. It matches a company's assets to its borrowing needs. And unlike convention cash flow financing, asset-based lending doesn't rely on balance sheet ratios and cash flow projections as loan criteria.
Instead, asset-based lending uses the borrower's business assets as its primary focus for lending. It evaluates a company's asset coverage, liquidity and, to some degree, the borrower's ability to service their debt. Thus, the quality of the collateral becomes the principle determining factor of creditworthiness.
Asset-based lending gives financing companies the benefit of liquid assets to protect their loan, thus these loans place less reliance on the borrower's operating performance. And as one would imagine, the interest rates on asset-based loans are generally less than those on unsecured financing.
How Asset-Based Lending Works
In essence, asset-based lending provides companies with cash by lending on fixed assets. The borrowing capacity is geared to the amount, quality and liquidity of the asset being used as collateral. For example, the current assets of accounts receivables could serve as the borrowing base for a revolving credit line that could be drawn down and repaid. This can help a company accelerate cash flow by enabling it to borrow against the future value of current assets expected to become cash in the near term. In turn, the company could use the borrowed funds to finance working capital to meet operational and other needs.
Businesses frequently use asset-based lending to fund acquisitions. And it's actually possible to use the assets of the company being acquired to finance the acquisition. Many companies also use asset-based lending to grow their business. A revolving credit line, for instance, can provide borrowers with a great deal of flexibility and borrowing capacity from its existing asset base. Moreover, an asset-based lending solution can be designed to "grow" with the company. For instance, a revolving credit option could be develop
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