Asset Based Lines of Credit

NYBDC has entered into a partnership with BDC Capital Corporation to support and/or provide fully followed asset based lines asset based lines of credit from $750,000 to $3 million to address a clear gap in the current market and to support your customers.

Like NYBDC, BDC Capital works with lending partners in New England to provide loans to small
businesses that are not able to secure conventional financing. BDC Capital has developed the lending program and staffing to support this partnership and will work with us to make the loan (with or without participation from the referring bank) or to provide fee based services to manage the ABL relationship for the lender. If you know a business that seeks financing to manage a temporary loss of revenue, or that wishes to leverage a balance sheet to access financing, our ABL offering is an affordable, flexible option.

 

Program Details


Loan Amounts

  • Lines of credit from $750,000 - $3 million

 Interest Rates & Fees

  • Interest rate: one month LIBOR + 6 to 7%
  • 1% closing fee and 1/2% renewal fee
  • Field exam fees: $850/day at 3 to 4 days
  • All-in cost is about 8.5-9% depending on loan size

Use of Funds

  • Support a business through a temporary loss of revenue with the goal of returning to profitability
  • Leverage balance sheet assets to free up working capital or finance other business expenses

Typical Candidates

  • Typical industries include manufacturers, distributors, wholesalers, and some service companies
  • Construction companies, start-ups, healthcare related companies, and companies with inventory financing needs greater than receivable financing needs are not eligible

 Key Collateral Items

  • Daily submission of sales and cash receipts
  • Up to 80% on 90 days receivables and up to 50% on eligible inventory
  • Weekly submission of A/R and A/P agings, inventory and financial statements
  • Annual reviewed or audited financial statement and annual monthly projections for covenant reset

For more information or applications, please call Andrew Linehan at (518) 463-2268

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