Access to Financing with Minimal Corporate Credit Underwriting

Businesses that need access to financing and don’t have strong corporate credit may have viable solutions for obtaining a loan facility. This brief overview will summarize three loans types that such businesses should consider.

1) Unencumbered Equipment Loan?

If a business owns equipment that is debt free and also has value in the secondary market, there are Lenders that will lend solely based on the value of the equipment and without evaluating the credit quality of the business.??

ADVANTAGES

• No corporate credit underwriting
• Funding can occur in as little as two weeks
• No financial covenants associated with the loan
• Can be structured as term loans or lines of credit

2) Accounts Receivable-Based Loan?

If a business has “Business to Business” receivables and customers have extended payment terms, Lenders may either buy the receivables from the business or lend against the value of the receivables.?

ADVANTAGES?

• Rapid access to capital based on the value and quality of the receivables
• Potentially minimal to no corporate underwriting
• Loan facility size can grow in tandem with the amount of outstanding receivables

3) Revenue-Based/Cash Flow Loan

Lenders may structure a loan solely based on a business’s bank deposits.

ADVANTAGES

• Can be funded very quickly (i.e.: within 12 – 24 hours)
• High degree of certainty of loan closing once indicative proposal is provided
• No financial covenants

In all three cases, any existing loans/liens will need to be taken into consideration.

Morewood?Funding, LLC is experienced in the above loan types and has significant Lender relationships that we can introduce to businesses. We invite calls from potential borrowers, distressed or otherwise, to explore at no cost the financing options we have available.

If you own or are associated with a business in need of $1mm to $20mm in working capital, please call or email us at:?(917) 561-7074?or?[email protected]