Asset Based Lending
When it comes to asset based financing, First American Bank gives you options that you may not find at a larger bank. We have full service capabilities in asset based lending, and are particularly qualified to assist privately-held companies. Our size and management structure make it possible for us to respond quickly with tailor-made financial solutions that reflect a true understanding of your company's history as well as your potential for growth. And because we take the time to listen, you can be sure you'll receive consistent, professional, and personal service from a bank with the ability to meet your needs.
An Asset Based Loan is a loan issued to companies that may or may not have fixed assets, but can offer accounts receivable and/or inventory as collateral. If your company's growth has outpaced its ability to internally finance its ongoing cash needs, you may want to consider this form of financing.
With an Asset Based Loan, a revolving line of credit is extended to you by First American Bank. You submit all daily collections to us via a lockbox, personal delivery to one of our branches, or overnight mail. First American monitors these incoming collections and uses them to pay down the loan, thus minimizing your interest expense and helping you to manage your finances more efficiently. As you need funds to pay bills, purchase inventory, etc., you can continue to borrow against your line of credit.
Because of this monitoring system, an Asset Based Loan can be used as a cash management tool by providing a formal structure through which your company repays its working capital debt and lowers interest expense. Through our careful monitoring of your loan account, we can also provide you with detailed reports tracking trends in sales, collections and accounts receivable turnover as well as line of credit usage and availability.