Industrial finance is for large companies that often have a significant amount of capital equipment, large manufacturing facilities and several hundred employees. Industrial finance is a good solution for companies that provide services to municipalities such as power generation, water treatment or mass transit systems. Industrial Finance is also utilized by companies that have large manufacturing facilities and need working capital to finance machinery and equipment as well as labor costs.
The most common types of industrial funding are:
- Asset Based Lending
- Equipment Finance
- Real Estate Finance
- Supply Chain Financing
- Government Funding
They type of industrial finance that is available to your company will depend on the company's assets. Accounts Receivable, Inventory, Machinery & Equipment, Real Estate and even Patent rights can be included in the borrowing formula. The advance percentage against each asset class is what will ultimately determine how much capital can be borrowed against the assets. In order for assets to be considered in the borrowing formula, they must be free of encumbrance.
Industrial Finance is often syndicated by two or more banks. There will be a lead agent who is responsible for administering the loan and providing financing and other participants who are providing capital. The participants have an inter-creditor agreement with the lead agent that governs the terms of the relationship. When clients seek revisions to credit facilities, the lead agent and the participants typically need to agree on the changes.
While there are several forms of Industrial Finance available, each has its positives and negatives. In many cases more than one form of financing can be used to generate capital. Choosing the right working capital facility with the right lender can make all the difference.
Call us now at 855-424-2958 to discuss your industrial finance options! Or fax us at (855) 450-0885.
Customized Financing Options
Asset Based Lending
Revolving lines of credit up to $20,000,000
Accounts Receivable Factoring
No minimums, up to $20,000,000
Secondary lines of credit for ABL or Factoring
Equipment & inventory facilities
Great for staffing & temp agencies