Business Lines of Credit can allow you to borrow up to 90% of your assets value in your company with low interest rates.
IMM Asset Based Loan Program: Does a Business Line of Credit that will allow you to take advantage of all the assets in your company more in line with what you are looking for?
An ABL Facility is a Credit Line that is put into place using some or all of the company’s assets as collateral for the Credit Facility provided to the company. This process is an expansion on the Accounts Receivable and Business Loan Program to provide Credit Availability to the company based on the equity position the company has. Our ABL Program will typically give a higher allowance on the company assets than that offered by most banks.
A true Asset Based Loan program may be what you are looking for. A Line of Credit will leverage value of your assets in your business. IMM Financial has some of the best ABL Programs in the businesses and they are ready to give you the Business Line of Credit you deserve.
When you have an Operating Line of Credit such as this it is very comparable to what a bank would do with the exception that your Operating Account for you day to day banking will be left with your bank.
Asset Based Loan Questions and Answers
- What is a Business Line of Credit?
- Why not just go to my bank to get my Business Credit Line?
- What is the process to get approved at a Business Line of Credit?
- Is the application process at IMM Financial to get a Commercial Operating Line of Credit the same as awkward and difficult as at my bank?
- What security do I need to offer for my Business Loan?
- What is Asset Based Lending or ABL?
- How long do I need to be in business for before I can have a Commercial Line of Credit?
- I have customers in different countries; will this affect my chances of getting the Operating Line of Credit?
- How much time is needed to get my Business Credit Line in place?
- Are there restrictions on how I can use my Commercial Line of Credit?
1. What is a Business Line of Credit?
A Business Line of Credit is a predetermined sum of money which a business is able to draw on from a Business Lender. A company would apply for a Operating Line of Credit with a Commercial Lender.
There will be some sort of collateral needed to secure the funds available to the company. In most cases, the Operating Line of Credit is considered to be “interest only” payments which will mean that the company borrowing the funds will only be required to pay interest on the funds actually employed.
2. Why not just go to my bank to get my Business Credit Line?
You can, and we actually suggest that first. If you can get approved by a bank, that is generally going to be a lower cost option for you. That being said, if the bank is not able to help you, we would be more than happy to go through the many options we have available.
Many of which are not even offered by banks. If you are in a rush to get funding, we have funding options that can set up in days and are extremely flexible. Our products are not for every business, and neither are banks. Knowing your options and making an informed decision is always the best route.
3. What is the process to get approved at a Business Line of Credit with IMM Financial?
The first thing we need to determine which product would fit your situation the best. Is Accounts Receivable Factoring what you need, or perhaps a combination Purchase Order Finance and Export Finance, or maybe a Merchant Cash Advance will be best, Equipment Leasing or a Sale-Leaseback and for some businesses, they need an Asset Based Lending solution.
4. Is the application process at IMM Financial to get a Commercial Operating Line of Credit the same as awkward and difficult as at my bank?
Not even close. You will not need to provide tons of paperwork, years of financial statements and your life history for the Business Financing Solutions we offer. Some Financial Products we offer do require more information than others, but the process with our Commercial Lending Solutions are always simpler to apply for.
5. What security do I need to offer for my Business Loan?
The type of security for your Small Business Loan will vary depending on the Financial Lending Product you choose. Below is a general list of the securities that are needed for each of the various IMM Lending Products:
- Accounts Receivable Factoring → Secured by Accounts Receivable
- Export Finance → Secured by Export Receivables
- Purchase Order Finance → Secured by Purchase Orders and Accounts Receivable
- Merchant Card Advance → Secured by Credit Card Sales
- Equipment Leasing → Secured by the Equipment being Financed
- Letter of Credit → Secured by Purchase Order(s)
- Asset Based Operating Line of Credit → Secured by all Assets of the Company
- Project Finance → Secured by the Project
6. What is Asset Based Lending or ABL?
For those companies that need the maximum amount for their Operating Line of Credit, an ABL Funding is done which will be secured by all Assets of the Company. This is often a combination of Accounts Receivable Finance, Export Finance, Equipment Leasing combined with a Sale-Leaseback of some or all Assets with equity position.
7. How long do I need to be in business for before I can have a Commercial Line of Credit?
Again, this varies with the type of Commercial Financing you choose. Some products are for startups while others do require some seasoning on your company. That being said, as we are not a bank, there may be ways to mitigate short business history such as personal credit, money down on your purchase. Feel free to ask your Account Executive what your options are if your company is new.
8. I have customers in different countries; will this affect my chances of getting the Operating Line of Credit?
This does not necessarily cause an issue but again, it will depend on which Commercial Financing option you decide you wish to use. Your Account Executive will have full details on any exceptions that exist.
9. How much time is needed to get my Business Credit Line in place?
The type of Commercial Finance Program you choose will affect this considerably. If you opt for only Accounts Receivable Factoring or Merchant Card Advance, this can be done in under a week from the time the complete package has been submitted. Export Finance, Purchase Order Funding, Equipment Leasing and Letters of Credit can be completed in less than 2 weeks. Project Finance will take the longest. This process can be up to a few months, depending on the Project.
10. Are there restrictions on how I can use my Commercial Line of Credit?
In general, the only restriction is that the funds should be used for growing your business. That being said, most often you are not asked to account for how the funds are used.