Asset Based Funding

Through EPASS Capital, in certain circumstances, existing SME clients that are unable to obtain medium-term financing from commercial banks may find greater credit availability and flexibility in an asset-based lending solution.  Medium term asset-based funding is usually required to fund expansions, capital expenditures and other strategic opportunities that are not project or contract-specific.

An asset-based credit facility is a medium-term (3 – 6 month repayment period) debt instrument secured by accounts receivable, inventory, equipment, real estate and certain other assets. EPASS Capital develops successful relationships by providing customized solutions under a variety of lending structures that reflect an understanding of each client's industry and needs.  The amount generally available is calculated as a percentage of each of these asset classes.  Each facility is individually evaluated and structured according to each situation.


Overall Benefits



















.



Specific Benefits

EPASS Capital's asset-based funding solutions help clients address business challenges
including:


Restructures












































...........................................................................................................................................
Our Businesses               Asset Based Funding
.........................................................................................................................................................................................
Overall Benefits |  Specific Benefits  |
Copyright © 2007 EPASS International Ltd. All Rights Reserved
EPASS Capital’s asset based lending solutions provide an optimal transition path for many businesses that must change lender institutions, loan structures, or capital structures in order to maintain sufficient financing.  EPASS Capital offers extensive experience in medium-term loan restructures and the situations that make them necessary - such as a change in status with respect to existing commercial bank financing or a current lender's inability to extend sufficient credit to support growth.

EPASS Capital offers a consultative support in developing a strategy and identifying the best alternatives to restructure existing medium term financing (such as existing lender discount, soft note "takebacks", trade restructure, or utilizing additional capital resources to support a restructure).





Unless your company has been in business for a number of years and has established an incredible track record of strong profits and cash flow, it unlikely that your company will qualify for a medium term loan from a commercial bank.  A short operating history or rapid growth need not be an obstacle to an asset based financing solution. EPASS Capital has the ability to finance businesses with short operating histories.  In addition, EPASS Capital has strategic contacts with alternate capital sources that can support growth.





If you are considering buying a competitor, unless your company has been in business for a number of years, has established an incredible track record of strong profits and cash flow, has a significant amount of equity on its balance sheet AND has a seller that is willing to finance a significant amount of the sale price for you, it is highly likely that you will require specialized medium term financing to fund the acquisition.

EPASS Capital’s asset-based funding solutions have been used by companies that have good-quality assets, unencumbered receivables and seek to make strategic acquisitions.

In addition, EPASS Capital provides its clients with expert advice on the realizable value of going concerns, intangible assets and other specialized business assets.


Back To Top ^



  • Asset based lending enables you to finance your business by leveraging the equity in your current and fixed assets.
  • Because of our specialized monitoring of credit and collateral, we can underwrite facilities that are outside the typical lending criteria of most commercial banks.
  • Unlike traditional bank debt that relies heavily on balance sheet ratios and cash flow projections as loan criteria, EPASS Capital evaluates a client's business assets as its primary focus to establish the borrowing base. The result is usually far greater borrowing power than can be achieved from a traditional cash flow banking approach due to our expertise in industry specialization.
  • Commercial banks prefer to lend on stationary tangible hard assets.  Inventory and receivables are rarely considered as part of the borrowing base.  EPASS Capital can offer higher advance rates due to its experience in receivable valuation.  In the event that the client already has a bank line of credit, an inter-creditor agreement is made between the commercial bank and EPASS Capital where receivables and inventory are assigned to EPASS Capital.  This allows the client to maximize its advance rate with its commercial bank.
  • Our consistency of approach helps prevent surprises and means you can count on us to follow through.
Short Operating History
Acquisition