Our Borrowing Base Financing, or Availability, Program lets the you use all of your account receivables as the collateral for your business loan. We make advances against your line of credit based on the collateral base. This gives your business the freedom to grow by allowing you to invest in your business while you await payments from your customers.
If this sounds like a financial solution for you, contact us for a no-obligation consultation.
How our Borrowing Base Financing Works
Allied Financial does all of the work in calculating a daily availability; therefore, our borrowers always know where they stand and can plan accordingly. The borrower can borrow as much or as little as needed up to the available amount under the formula.
Our formulas are straightforward and are updated daily. We will make a percent advance against all eligible accounts receivable. Generally, invoices over 90 days, contra accounts, pre-billed invoices and foreign receivables are not eligible for advance purposes.
We cross age the receivables using a 33% cross age rule. Our cross age rule states that if 33% or more of the accounts receivable due from any account debtor is over 90 days past due from the date of invoice, the entire balance may become ineligible for advance purposes.
Typically, we provide a loan based on your company’s total accounts receivable. If your eligible accounts receivable is valued at $500,000, we can give you an 80% ($400,000) advance directly into your bank account.
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We provide business financing, no matter your specific financial situation. Get started and earn secure working capital financing. Fill out an online Contact Us form and achieve a financing solution right for your business.