THE ASSET BASED LENDING PROCESS

Asset Based Lending allows you to borrow a percentage of your Accounts Receivable, Equipment, and Inventory. All or one of these assets may be utilized in an Asset Based Line of Credit. Find out below how your current assets can assist your company in obtaining the capital it needs.

Asset Based Line of Credit with Accounts Receivable Financing:

  1. Your company provides a product or service to your customer.
  2. You provide SouthStar with an aged accounts receivable and payable summary.
  3. SouthStar will set up an open line of credit up to 85% of the qualifying outstanding receivables.
  4. Your customer submits payment made out to your company to SouthStar’s lockbox.
  5. SouthStar will collect the payments from the lockbox.
  6. We will then apply the collected amounts toward the outstanding balance on your line of credit.

Asset Based Line of Credit with Equipment:

  1. You have a piece of machinery or equipment with some equity.
  2. You get a professional appraisal done on the equipment to establish a value.
  3. The equipment is underwritten to determine the ability to liquidate if it becomes necessary.
  4. Once approved, SouthStar will set up an open line of credit up to 70% of the value of the assets (taking into account any existing liens on the equipment).
  5. As you pay down the line, you free up additional cash to use at your discretion.

Asset Based Line of Credit with Inventory:

  1. The value of the inventory on hand is established either from your current balance sheet, third-party verification, or a combination of the two.
  2. Once the value is established, SouthStar will underwrite the inventory based on the ability to liquidate, if it becomes necessary.
  3. Once approved, SouthStar will set up an open line of credit up to 50% of the value of the inventory.
  4. As you pay down the line, you free up additional cash to use at your discretion.
Asset Based Lending

Asset Based Line of Credit with Accounts Receivable Financing:

  1. Your company provides a product or service to your customer.
  2. You provide SouthStar with an aged accounts receivable and payable summary.
  3. SouthStar will set up an open line of credit up to 85% of the qualifying outstanding receivables.
  4. Your customer submits payment made out to your company to SouthStar’s lockbox.
  5. SouthStar will collect the payments from the lockbox.
  6. We will then apply the collected amounts toward the outstanding balance on your line of credit.

Asset Based Line of Credit with Equipment:

  1. You have a piece of machinery or equipment with some equity.
  2. You get a professional appraisal done on the equipment to establish a value.
  3. The equipment is underwritten to determine the ability to liquidate if it becomes necessary.
  4. Once approved, SouthStar will set up an open line of credit up to 70% of the value of the assets (taking into account any existing liens on the equipment).
  5. As you pay down the line, you free up additional cash to use at your discretion.

Asset Based Line of Credit with Inventory:

  1. The value of the inventory on hand is established either from your current balance sheet, third-party verification, or a combination of the two.
  2. Once the value is established, SouthStar will underwrite the inventory based on the ability to liquidate, if it becomes necessary.
  3. Once approved, SouthStar will set up an open line of credit up to 50% of the value of the inventory.
  4. As you pay down the line, you free up additional cash to use at your discretion.

Call or email us today for a custom Asset Based Lending solution using your Accounts Receivable, Equipment, and Inventory.

Asset Based Lending

Learn how Asset Based Lending works, what it is, and the advantage of working with SouthStar Capital.

Asset Based Lending

Find out what our clients are saying about Asset Based Lending with SouthStar Capital. Plus, real life success stories on business growth with Asset Based Lending.

Asset Based Lending

When considering if Asset Based Lending is the right solution for obtaining working capital for your business, ask yourself the following questions.

Asset Based Lending

Find out the key differences that set Asset Based Lending apart from Bank Financing.

“As the Account Executive was talking to me about my business, he suddenly stopped and asked me about my printing press on the production floor. As it turns out, SouthStar was able to set up a line of credit against my printing press and gave me the capital I needed to meet payroll and weather this storm. I’m so grateful!”

– Carol, Owner of a Local Printing Company