We offer an array of asset based lending (ABL) and financing solutions.
Capital Desk offers a Revolving Business Line of Credit (RLOC) to companies that qualify. Revolving facilities can be structured against assets that include accounts receivable (A/R), purchase orders (POs), and inventory, raw goods, and materials, and come with interest only payments.
Much like a traditional bank, we do a top-down analysis of the business, industry, and financial history and forecasts. To qualify, companies must enough assets (receivables, POs, inventory), enterprise or middle market clients, and a profitable history.
Our risk team evaluates the quality of your assets to calculate your maximum credit availability. You will receive term sheets outlining advance rates- typically up to 80-90% on eligible receivables, and 50-60% on raw materials, POs, or inventory – giving you immediate insight into your borrowing power.
Once you’re set up with your revolving business line of credit, drawing down funds happens instantly whenever your business requires cash. As your company issues new invoices or acquires additional assets, your total credit availability expands automatically, giving you a dynamic facility that grows alongside your volume.
With access to 60+ financing partners, we guarantee you multiple paths to close, provided you qualify.
Since September, 2023, we’ve deployed $114M+ to clients across an array of industries.
A revolving business line of credit is an interest-only loan against a basket of “assets” on your balance sheet. Those assets must include receivables, but can also include purchase orders, inventory, raw goods, and materials.
An RLOC works just like a HELOC – you draw as needed against your basket of short-term assets, and pay interest only back to the lender until the end of the term, which is usually 1-2 years. As you draw, your interest pay ment goes up, but the principal doesn’t come due until the end of the term or if you violate a covenants.
Yes, usually, because RLOCs are the cheapest and most affordable. They’re not only “cheaper” than most commercial financing products in terms of price, but more affordable than nearly every other loan product because it’s “interest only”. Additionally, profits are required, which de-risks the deal for the lender, enabling them to offer lower rates.
You must have receivables from enterprise or middle market clients who can be approved for credit. Qualifying inventory, purchase orders, raw goods and materials can be placed into the facility as well, to maximize the borrowing base. Profits are almost always required for a true RLOC.