ASSET-BASED LENDING

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Asset-Based Loans and Lines of Credit

Razi Capital has significant expertise in sourcing capital in the asset-based lending arena. We offer a variety of solutions for companies looking to leverage existing assets to address both short and long-term capital requirements. The asset-based lending products can be tied to a combination of accounts receivable, inventory and equipment.

Accounts receivable and inventory line of credit

 

Razi can address your company’s working capital needs through a line of credit tied to your company’s accounts receivable and inventory. This is a formula driven revolving line of credit and that it based on eligible receivables and inventory. This is one of the cheapest ways that a company can borrow money. In addition, this type of financing is more flexible in that the company has the option to borrow what it needs at any given time and pay off the loan as cash becomes available. We are currently considering transactions that range between $250,000 to $10,000.000.

 

Equipment and other asset-based loans


Companies that require additional capital to what is available through accounts receivable and inventory financing can look to unlock the value of their fixed assets by using them as collateral or through sale-lease back of such assets, as long as we can verify the value of these assets. The typical transaction under this program can range anywhere from $100,000 to in excess of $25,000,000.

 

​Inventory financing


Companies in certain industries carry large amounts of inventory relative to their accounts receivable. Historically, this has been problematic since a lender may put restrictions on how much inventory financing is available relative to the accounts receivable borrowing base. Razi has discovered the solution to this problem. We can structure inventory financing as a standalone solution or in conjuncture with another asset based lending product. Currently, transactions of up to $1,000,000 are considered under this program.

 

​International accounts receivable financing


If the company’'s domestic receivables are currently being financed through another source, we can work with your current lender to provide an additional line based on foreign receivables. We can review a company’s cross-border sales to provide structured trade finance, risk management and a receivable financing that complements complex international transactions as the company expands into new markets.

 

​Accounts receivable factoring


As an alternative to a traditional line of credit, factoring has several advantages: 1) obtain a much larger advance compared to a traditional line, 2) faster turnarounds and less documentation, and 3) less financial restrictions and usually without covenants. In addition, once the line is set up, the company only pays as it borrows money. Companies can be selective on what accounts they want factored. We can structure both recourse and non-recourse as well as non-notification factoring options. Transactions considered under this program range from $50,000 to $10,000,000.

Target Profile

 

- Strong management team
- At least one round of equity financing
- Strong intellectual property

- Addressing a large market need
- Defined exit strategy

Industries

 

Software
Mobile and Wireless Technology
Pharmaceuticals
Medical Devices
Healthcare Services

Networking
Computer Hardware
Semiconductors
Alternative Energy
and More ...

Significant expertise in sourcing capital in the asset-based lending arena. We offer a variety of solutions for companies looking to leverage existing assets to address both short and long-term capital requirements. The asset-based lending products can be tied to a combination of accounts receivable, inventory and equipment.