A flexible and customized approach to financing the growth related
challenges faced by entrepreneurs
Quantum's asset based lending program is designed to give entrepreneurs
access to the working capital that's tied up in the following three asset
classifications on their company's balance sheet.
1. Accounts Receivable
By borrowing against these current assets, management is able to generate
cash sooner than if it had to wait for inventory to become accounts
receivable, and for accounts receivable to become cash. Wholesalers,
retailers, distributors, manufacturers and service companies can all
benefit from the use of our revolving credit facility.
Our revolving credit facilities are custom structured to meet the needs of
each business. In order to make the loan "work", Quantum's financial
engineers will work outside the box to find the best way to give the client
the maximum availability. Often times this will mean looking toward
additional collateral in the form of the company's real estate assets, or
perhaps secured personal guarantees from the principal owners and managers
of the business.
Quantum's underwriters will determine an advance rate and an eligibility
formula. The advance rate is the maximum percentage that Quantum can make
available against the eligible assets, in company's borrowing base.
Typical advance rates may vary significantly depending on the type of
business, the stability of the business, and the additional collateral
To expedite the underwriting process, the following data will typically be
Most Recent Fiscal Year End, and Most Recent Interim Financial
Personal Financial Statement and credit report on each Principal
Accounts Receivable Aging and Customer List.
Accounts Payable Aging
The collateral supporting a revolving credit facility will be monitored.
This is beneficial to both the borrower and lender. In this way, we can
make available the largest possible loan supportable by the collateral.
The monitoring will typically consist of field examination audits, and
accounts receivable verifications.
Normally it will take approximately three to four weeks to close a
revolving credit facility. This will vary of course depending on the
complexity, type of facility, and amount of negotiation. To help reduce
time and expense of the closing it is important to be open, and to provide
us with complete and accurate data from the beginning.
As in virtually all lending relationships, the borrower is responsible for
the lender's out of pocket costs, which could include, legal fees, audit
fees, and appraisal fees if necessary.