Asset-Based Lending from Danbury Capital Services
We are part of the Danbury Group of Companies whose origins date back over 60 years.
We are a commercial finance company. Our primary role is to provide lending solutions to businesses that are experiencing transitional funding issues relating to management buy-outs, working capital shortfalls, rapid organic sales growth, acquisitions, operational turnaround or financial restructurings.
We are full service asset-based lender focusing on the $5 million and under deal size. We provide asset based loans against all asset categories including, Accounts Receivable, Inventory, Machinery & Equipment and Real Estate to companies operating over a full range of industries. We also provide Purchase Order Financing services.
Growth Money
Businesses need money to grow. A business cannot survive just because it has a better product, an exclusive market or the best method of distribution. The catalyst required for progress is money.
Business owners and managers must be knowledgeable about financing, what it can do, why one form may be better than another.
Financing may be valuable when:
- Operating cash is tied up in receivables;
- The best trade terms for supplies create cash flow shortages;
- Inventory levels are high because of client demands;
- Sales growth is straining resources;
- Seasonality peaks cause problems;
- No fixed assets are available for collateral;
- Trade discounts and special pricing terms cannot be obtained;
- Letters of credit are required to supply or buy overseas;
- Debtor-in-Possession financing is required.
Asset-based lenders often advance funds when traditional sources are not available. They are familiar with various types of businesses and are responsive to client needs.
Danbury Capital's Service Products
Danbury Capital has developed a series of asset-based loan products for companies requiring financing of approximately $500,000 to $5,000,000. The loan products by asset category are:
Machinery & Equipment Advances
Advances are based on the underlying value of the machinery & equipment, as appraised by our appraisal group. Advances are restricted to assets that provide Danbury Capital with first charge security interest. more >>
Inventory Advances
Advances are based on the net underlying value of the inventory assets, as appraised by Danbury’s appraisal group; advances are against priority secured inventory only. Advances will be monitored on an ongoing basis with the support of regular borrowing base certificates, quarterly field audits and refreshed appraisals. more >>
Real Estate Advances
Advances against real estate are restricted to non-residential and fully developed income producing sites to a maximum of 85% of the Go Dark Value, as appraised by High Point Realty, an affiliated company of Danbury Capital. Advances will be made on a first charge basis only. The Go Dark Value assumes the building is vacant and provides for the net proceeds after sales commissions, all clean up and maintenance costs and all holding period costs including taxes, insurance and utilities. more >>
Accounts Receivable Advances
Advances will be capped to a maximum of 85% of eligible accounts receivable as generally defined by the factor community and which address debtor concentration percentages, progress billings, accounts over 90 days, receivables subject to set-offs (contra accounts), debtor accounts with a history of performance issues and account dilution. Advances will be supported by pre-survey receivable audits. Factoring advances, done in conjunction with Amerisource, will provide advance rates up to 85% of “Eligible” Receivables (90% on an exception basis against certain blue chip account debtors). more >>
Purchase Order Financing
Danbury Capital acts as a partner in your business by assisting you with the cash flow 'gap' that occurs when your suppliers want you to pay cash on delivery/shipping and your customer wants to pay you on pre-set terms, but your capital is tied up in your operational costs including labour, packaging and shipping.
We can provide funding to move you through your transaction cycle: your suppliers are paid, the goods are shipped to you, your product is delivered to your customer and the receivables are collected. more >>
Inventory Floor Plan Loans
Inventory floor plan loans are available in circumstances where the dealerships are long standing and financially strong; the distributor(s) are long standing and financially strong; the manufacturers are long standing and financially strong; the distributor is prepared to provide Danbury Capital with an on-going letter of credit representing 10% of the total loan facility and the retail margins on the product exceed 20%. more >>