Asset-based lending

North Mill Capital - Asset-Based Lending and Factoring Program Overview

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• published: 08 Apr 2016
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Who is North Mill Capital ? Non-Bank Commercial Lender Based in Princeton, NJ & able to fund businesses nationwide Owned by Private Equity and Company Leadership Well-capitalized with untapped capacity Seasoned management team with decades of industry experience “Big enough to serve you and small enough to know you.” Who is North Mill Capital ? Focused on lending to “un-bankable” businesses Our clients do not meet bank lending standards for reasons such as: Too new – insufficient track record for bank Growing rapidly – may qualify for bank funding, but not enough to meet demand for product/service In transition – new owner/management may no longer have confidence of bank In distress – violated bank covenants, reporting losses, in bankruptcy Product Offering Revolving Collateral-Based Credit Facilities Account Receivable Factoring Asset-Based Lending Account Receivable Factoring Factoring is the purchase of an account receivable for immediate cash. Great fit for B2B Businesses Manufacturers Wholesalers Distributors Service Businesses Staffing We focus on quality of accounts receivable over strength of the business Account Receivable Factoring Credit facilities from $100,000 - $30 Million Common Client Characteristics: High growth companies Start-up companies Companies with losses, negative equity Companies in need of bridge financing Companies with limited financial information Account Receivable Factoring Typical Structure: Up to 85% advance rate on domestic AR up to 90 days No financial covenants Contract terms from 6 months Typically no on-site field examinations or collateral audits Other Services: Credit limits established and monitored for each customer Accounts receivable management and reporting Online access to reports and check copies Lock box services available Fund /Closing: Normally within 1 to 2 weeks from initial meeting date Asset-Based Lending Asset based lending differs from factoring in that monies are lent based upon a pool of assets rather than on individual invoices.  Credit Facilities from $500,000 to $30 Million B2B Businesses with strong customer base Manufacturers Wholesalers Distributors Service Businesses Do not qualify for bank financing Marginally profitable or losing money Asset-Based Lending Do not qualify for bank financing Marginally profitable or losing money Weak balance sheet Negative tangible net worth In or emerging from bankruptcy Currently in the asset recovery department of a bank or on an “exit” strategy Asset-Based Lending North Mill provides a revolving credit facility based on value of key assets: Up to 85% against accounts receivable Domestic Less than 90 days old Up to 50% against inventory Finished goods and some raw materials Up to 85% against liquidation value of M&E; (May have seasonal or specific working capital needs in excess of advanced rates) We do not finance… Inventory or Equipment Only Deals All transactions must have quality AR at their core Contractors Or any business with progress or milestone billings Medical professionals Receivables due from third-party payers Medicare/Medicaid/Insurance Companies Companies looking for cash against POs or Contracts Must have outstanding accounts receivable Application Requirements Completed North Mill Capital Application Last 2 years financial statements and interims 12 month projections Current AR Aging – Preferably in Excel Current AP Aging – Preferably in Excel Inventory report (if applicable) Equipment list (if applicable) Next Steps Feedback can usually be provided 24-48 hours from receipt If interested, proposal will follow shortly Call with client may be requested prior to issuing proposal Funding as quickly as 1-2 weeks from approval for factoring Funding in 30-45 days for ABL Contact information Chris Lehnes Senior Vice President 203-304-9527 clehnes@NorthMillCapital.com www.linkedin.com/in/chrislehnes