Areas Served: Manatee County
TARGET USER: Manatee County, Florida companies with revenues of up to $20,000,000. This product can be for manufacturers, wholesalers, distributors, service companies and others.
The target users typically do not qualify for traditional financing due to higher than acceptable leverage, a high rate of sales growth or having been in business for a relatively short period of time.
LOAN TYPES: Loans under this structure can be up to $5,000,000. The loan is usually structured as a line of credit secured by accounts receivable and/or inventory.
Advances under the line of credit are based on amounts of up to 75% of accounts receivable and up to 50% of inventory.
Borrowers will need to supply monthly or even daily detailed reports verifying the value of the accounts receivable and inventory base.
HOW TO APPLY: Borrower will need to provide, at a minimum, three years of fiscal year-end financial statements and the most recent year-to-date financial statement.
The borrower will also need to provide a current detailed listing and aging of all accounts receivable and inventory.
Once this information is reviewed, additional information may be requested.
The owner(s) of the company typically will be required to personally guarantee the loan.
The borrower can make applications to medium and large sized financial institutions as well as private asset based funding companies.
WHO’S NOT ELIGIBLE: Those companies that do not generate accounts receivable and inventory levels during the ordinary course of business.
ADVANTAGES: Provides a source of funding for those companies that are not able to secure traditional financing.
– Provides a quick source of cash on a daily basis.
– Allows the company to leverage existing assets to sustain continued growth.
– Establishes a relationship between a financial institution and the company, which will assist in securing future borrowings.
DISADVANTAGES: – Cost of borrowing is typically higher than traditional financing due to risk and monitoring requirements.
– Requires detailed financial information and reporting on a monthly, and sometimes daily, basis.
Contact InformationEconomic Development Council Manatee Chamber of Commerce
Address: 222 10th Street West
City: Bradenton
State: Florida
Website:
http://www.manateeedc.com/Asset.aspx
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