ledgered line of credit

Receivables line of credit | No restrictive covenants

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A ledgered line of credit also known as a receivables line of credit offer many of the advantages of a traditional bank line except for the choking restrictions that can hinder a company's growth should a financial covenant is not met during a review of their latest financials or an audit. A ledgered line of credit has no such restrictions.

Ideal for companies that are considering a traditional line or are present with an asset-based lending or bank line and would like to get away from the strict requirements but maintain the features of a line of credit and competitive pricing.

The line is flexible and secured with the company's accounts receivables. And unlike a traditional line of credit, there are no audits required or restrictive covenants with respect to ratios, concentration, etc.

HERE ARE THE OBVIOUS ADVANTAGES

No audit requirements
No restrictive financial requirements
No restrictive covenants
No financial ratio requirements
No concentration restrictions
No long application
Plus other benefits

Competitive pricing is similar to an ABL line structure, typically prime + %, plus a service fee. The service fee is charged monthly on the gross amount of invoices, interest is charged on the amount of funds actually drawn, thus controlling the cost of funding.

The process is simple, the company submits invoices, creates a pool or borrowing base, and then draws up to 80% or 95% depending on the advance rate. The client can draw funds, daily, weekly, bi-weekly, or monthly. Funding is based on the value of your receivables, providing constant capital based on sales. The ledgered line is structured to fit the funding needs of the client.

For more information, please submit this SHORT FORM. The affiliate office that handles your area will contact you shortly.


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