Metals Industry

One of the key benefits of asset-based lending is its flexibility in terms of payments, cash received, and timeframes. ABL also offers the necessary liquidity in cyclical marketplaces, such as the metals industry.

The metal industry is primarily asset-based. You need a lot of machinery to produce metal, which is worth a lot and can be leveraged to obtain a lot in an asset-based loan environment. Since the amount of credit given by an ABL lender is based on the value of these assets, the cash flow gained is more than sufficient to cover the gap between the money they receive from sales and their current expenses.

ABL monies can also be used for much more than just meeting cash flow needs. In the metals industry, mergers and acquisitions are frequent, so having access to cash through ABL allows metal companies to take advantage of these opportunities when they arise. One great way for businesses to grow is to merge with another smaller company and consolidate their businesses. Plus, with ABL, your metal business will always have access to the cash it needs for large capital expenditures, such as a new piece of machinery. In addition, with the emergence of fracking and the expansion of the oil field services industries, piping and tubing companies are looking for ways to make acquisitions, build new facilities, and integrate more along the supply chain.

The popularity of asset-based lending in the metals industry comes back to the flexibility factor. With no covenants to abide by, metal companies are free to take advantage of any and all opportunities or handle any problems without having to worry about if their funding will be affected.

ABL is based on asset levels, so as your metal business grows, so too does your loan. This is one reason why ABL is hugely popular with medium to large-sized metal companies. Plus, having a cushion against the constant ebb and flow of commodity prices is icing on the cake for most metal businesses.

The Commercial Finance Group has worked with many metal companies in order to get them the cash they need for the reasons above. Call today, and ask about ABL lending for your metal company.

Food & Beverage

The food and beverage industry has long utilized ABL lending for its working capital needs, such as meeting payroll, paying for facility costs, and purchasing inventory for later sales. Food and beverage businesses have inventory, accounts receivables, and equipment as assets that can be utilized for asset-based lending. The great thing for the food and beverage industry is that the amount of money that can be lent is based on the value of the actual value of the assets used, not on what your balance sheet says they are worth.

If any business has to be nimble these days, it’s the ever-evolving food and beverage business. With the influence of social media and the internet, trends come and go practically overnight, a health concern can spread like wildfire, and classy packaging can propel a food or a drink to stardom overnight. Small to medium-sized food and beverage companies can have a hard time keeping up and getting the financing they need to invest in new product development, changes in manufacturing technology, and being able to adjust to purchase orders and delivering ontime.

One of the main features that attracts food and beverage businesses to ABL is its inherent flexibility. Since the food and beverage industry faces many ups and downs throughout the year, such as seasonal demand for goods, having a very flexible financing solution that can adjust on the fly to what you need is worth its weight in gold. Since ABL is tied to your inventory and assets, your funding is fluid, meaning it can provide more working capital when you need it, and less so when it’s not needed as much.

Furthermore, say an unexpected expense crops up, such as a broken piece of critical machinery, your ABL loan is there to supply the funds as needed. You won’t have to wait precious (and costly) days on a loan application approval from a traditional lender. ABL lending is your food and beverage company’s financing solution you can count on. With quick financing approval and access to cash as well as an absence of covenants that can hinder your use of cash, ABL financing can be perfect for your food and beverage company. For a personalized small business financing solution, contact CFG to get started today!

Textiles

The textile industry has long relied on asset-based lending to meet its working capital needs. Textiles are woven materials and cloth that are often sold to be used either as standalone products or to be continued to be refined down the supply chain. Examples include rugs, clothes, tablecloths, upholstery, and more.

Let’s face it, we all use textiles every day, from the clothes we wear to the blankets we use at night. They have been woven, spun, produced, manufactured, repackaged, and sold for millenia. Textiles have evolved over the years, embracing technology as never before and allowing us to benefit from cool clothes made for specific purposes, such as lightweight fabric for safety and working out, “space cloth” for exploring outer space, stain-resistant carpets, and material that can absorb airborne biohazards. Consumers demand creativity, innovation, and technology, which, as a textile company, demands the ability to change on a dime. Investing in all of this newfangled technology is not cheap, and when you are waiting on accounts receivable, you can find your textile company in dire need of some fast cash.

In today’s modern manufacturing environment, textiles are now mass-produced using heavy machinery, which has a value. From real estate and inventory in your warehouse to the equipment used to manufacture your wares and accounts receivable, textile businesses have a lot of assets they can use to secure ABL loans. ABL loans are flexible in terms of repayment, amount needed, and getting access to cash quickly when you need it. Once you partner with an asset-based lending company, you not only have access to cash quickly, but if you maintain an on-going relationship, your access to cash can be tailored to your business’ need into perpetuity. The Commercial Finance Group can help you with all your ABL loan needs. Contact us today to get started!