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  • A/R Financing – Asset-Based Lending

    A/R Financing – Asset-Based Lending

    Continental also provides short-term working capital funding to businesses based on the value of certain collateral, generally receivables, and to a lesser extent, equipment and other assets. In contrast to Factoring, which is the purchase of receivables, when we enter into a commercial asset-based loan agreement we require that the client assign essentially all of its assets to us as collateral for the amounts that we may advance under the loan agreement. Upon request by the client, we advance funds as a loan in an amount that is subject to a limitation based upon a formula tied to eligible collateral; this advance creates a loan receivable from the client to us.

    Although we loan funds to clients generally based on eligible accounts receivable (as well as other collateral), we do not provide credit protection on these individual accounts. In connection with asset-based loans, we charge interest plus a collateral management fee

    Continental offers commercial loans outside of the structure of factoring in the form of accounts receivable lending. In certain situations, Continental will also lend against inventory, often on a seasonal basis, as well as on other assets (Continental does not, however, make stand alone inventory or fixed asset loans).

    Commercial or asset-based lending is secured by client assets as follows:

    Receivables Financing:
    Continental  lends money secured by accounts receivable.

    Equipment Financing: 
    Continental makes medium term loans available, secured by equipment, as a way of supplementing receivables financing. Funds can be used for working capital or to acquire new capital equipment.

    Acquisition Financing: 
    Continental may increase client lines or put new credit facilities in place to fund acquisitions.

    Term Loans:

    Loan amounts are based on a percentage of forced or auction liquidation value of the pledged assets. Term loans are coterminous with the revolver, even though amortization schedules may be 3-5 years.

    P.O. Financing

    Continental will provide purchase order financing in conjunction with accounts receivable financing or factoring.

    Debtor-In-Possession (DIP) Financing: 
    Continental provides court-approved financing to rehabilitate debtor-in-possession companies. These facilities are usually tied to receivables or receivables and inventory.

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    Contact Continental Business Credit

    15303 Ventura Blvd., Suite 1000
    Sherman Oaks, CA 91403
    Phone: (818) 737-3700
    Email:
    lhirsch@cbcredit.com
    jschnel@cbcredit.com
    mbegley@cbcredit.com

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