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Asset-Based Lines of Credit
Are you looking for the right formula for growth and profitability? An asset-based line of credit will allow your business to take advantage of growth opportunities and at the same time, relieve the pressure of meeting an "out-of-debt" period often required on traditional revolving lines of credit.
Prefer talking to a live person to discuss the best ways to reach your business goals? Use the button at right. An Asset-Based Line works well for:
Wholesalers and distributors
Businesses with cash tied up in receivables and inventory
Features and Benefits
Access to a larger limit than a traditional line of credit
Revolving based on accounts receivable and inventory balances
Advance rates up to 80% of eligible receivables
Inventory advance may be available on a limited basis
An Asset-Based Line of Credit vs. a Factoring Company Typically, a factoring company will take ownership of the receivables and collect them on behalf of the borrower. An asset-based line of credit uses the receivables as collateral but the company retains ownership of the receivables and manages the collection process.
A factoring company will typically charge a large upfront fee and a discount rate based upon how many days the receivable is outstanding, whereas an asset-based line typically charges an interest rate payable monthly based upon the total amount outstanding on the line. The cost savings can be substantial, especially if there are any delays in collecting the borrowers' receivables.
Also, American River Bank offers the borrower the option to automatically make transfers to and from their checking account or line on a daily basis through a sweep arrangement, thereby reducing monthly interest costs. Lending Area American River Bank serves clients throughout Northern California, including Sacramento, Roseville, Santa Rosa, Healdsburg, Jackson, Pleasanton and San Jose (Greater Sacramento Area, Sonoma County, Amador County, San Francisco Bay Area - South Bay, North Bay, and East Bay).
*Ineligible receivables include accounts aged more than 90 days from invoice date, foreign or U.S. government receivables and any portion of a receivable that accounts for more than 20% of the total accounts receivable balance.
THIS IS NOT AN OFFER OR COMMITMENT. RATES, TERMS AND CONDITIONS VARY BASED ON PROPERTY TYPE/USE AND MAY BE CHANGED WITHOUT NOTICE. ALL TRANSACTIONS ARE SUBJECT TO SUBMISSION OF A FORMAL APPLICATION, UNDERWRITING AND WRITTEN APPROVAL. APPROVAL TERMS MAY VARY.
American River Bank
American River Bank serves clients throughout Northern California, including Sacramento, Roseville, Santa Rosa, Healdsburg, Jackson, Pleasanton and San Jose (Greater Sacramento Area, Sonoma County, Amador County, San Francisco Bay Area - South Bay, North Bay, and East Bay).