CSA has a large group of asset based lenders that we work with. If the asset is tangible, CSA can probably find a lender. Standard asset classes that CSA regularly works with are real estate, machinery, IT equipment, and financial assets. Less commonly seen items include fine art, coins, and gems. 

Many larger companies find themselves long on confirmed business but short on working capital. Even with substantial client lists and sophisticated financial structures, payables often pre-date receivables. They simply don’t have the working capital on hand to keep up, but they fall just shy of bank loan criteria. Or if they do qualify, they have seasonal or otherwise time-sensitive capital requirements that the fixed disbursements rates of a traditional loan can’t satisfy.

For companies with a strong credit rating and advanced, verifiable financial reporting (such as receivable and payable summaries), Asset-Based Lending (ABL) provides an excellent financing option that is more cost-effective, flexible and discreet than factoring.

ABL provides all the advantages of factoring when it comes to leveraging the value of your accounts receivable, with the added bonus of non-notification and lower rates.

General lending parameters

Loan commitments

• $1,000,000 to $50,000,000
• Dedicated syndication capabilities up to $100,000,000

CSA’s lenders provide creative asset-based financing to middle-market companies throughout the United States, primarily with needs related to acquisitions, dividend recapitalizations, growth, debt restructurings, debtor-in-possession, and turnarounds. MB Business Capital provides flexible structures that include revolving lines of credit supported by accounts receivable and inventory and term loans, supported by equipment and real estate. We will also consider cash flow term loans based upon historical pro forma performance.

Structure

Revolver

• Up to 85% of eligible accounts receivable
• Up to 60% of eligible inventory with higher advance rates available based upon appraisal and to meet seasonal needs

Term loans

• Up to 80% of orderly liquidation value of equipment
• Up to 75% of appraised fair market value of real estate
• Capital expenditure facilities available to finance new equipment purchases

Amortization

• Up to 7 years – equipment loans
• Up to 15 years – real estate loans

Industries

Manufacturers, distributors, and selected service companies with sales from $25 million to $500 million; selected regional or national store-based retail chains.

Performance

Prospects should generally be profitable with sufficient cash flow to cover debt service. Turnarounds are selectively considered provided a return to profitability can be documented through due diligence.