Fashion Line of Credit
Receivables line of credit ideal for fashion and textile companies and apparel garment designers manufacturers distributors and wholesalers
This receivables line of credit also known as a ledgered line of credit is ideal for companies in the fashion apparel garment and textile industries that prefer the features of a traditional line of credit but without the requirements that can stop a company dead in its tracks should they fail to meet certain financial requirements.
A ledgered line of credit offers the advantages of a traditional bank line except for the restrictions that can hinder a company's growth should a financial covenant is not met during a review of the latest financials or an audit. A ledgered line of credit has no such restrictions.
Many sectors of the apparel fashion garment and textile industries including designers manufacturers distributors wholesalers and others can benefit.
HERE ARE THE OBVIOUS ADVANTAGES
- No audit requirements
- No restrictive financial requirements
- No restrictive covenants
- No financial ratio requirements
- No concentration restrictions
- No long application to the funding process
- Plus other benefits
IDEAL OPTION
This non-restrictive facility is ideal for fashion companies that are considering a traditional line or are present with an asset-based lending or bank line and would like to get away from the strict requirements but maintain the features of a line of credit and competitive pricing. The line is flexible and secured with the company's accounts receivables. And unlike a traditional line of credit, there are no audits required or restrictive covenants with respect to ratios, concentration, etc.
Competitive pricing is similar to an ABL line structure, typically prime + %, plus a service fee. The service fee is charged monthly on the gross amount of invoices, interest is charged on the amount of funds actually drawn, thus controlling the cost of funding.
The process is simple, the company submits invoices, creates a pool or borrowing base, and then draws up to 80% or 95% depending on the advance rate. The client can draw funds, daily, weekly, bi-weekly, or monthly. Funding is based on the value of your receivables, providing constant capital based on sales. The ledgered line is structured to fit the funding needs of the client.
Please submit this SHORT FORM for more information. The affiliate office that handles your area will contact you shortly.