Asset-Based Lending
Asset-based lending could be right for your company if you:
Key benefits
Improved liquidity
- Higher advance rates for A/R and inventory than traditional cash flow financing
- Offers the ability to smooth out gaps in your cash flow during business cycles and seasonal peaks
- Benefits companies experiencing high growth, seasonal and/ or cyclical swings, high volume/ lower margins or a temporary decline in operating performance
Attractive terms and pricing
- Typically, longer term than other forms of traditional financing
- Competitive pricing with other forms of traditional pricing
Increased flexibility
- Minimal financial covenants — typically, no leverage covenants
- Greater ability to fund distributions or pursue acquisitions based on liquidity
- Support during good times and bad for industries that are less attractive for traditional financing
Why CIBC asset-based lending?
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