What Is Machinery & Equipment Asset Based Financing?
Machinery and equipment asset based financing (or asset based lending) is a specific subset of the asset-based lending (ABL) world. Asset based lending can be an attractive financing alternative for companies that don’t qualify for a traditional bank loan or line of credit. To understand why, you need to understand the main differences between traditional bank loans and asset based loans. Banks lend money based on cash flow, looking primarily at a business’ income statement to determine if it can generate sufficient cash flow in the future to service the debt. In contrast, asset-based lenders look at a business’ balance sheet and assets - primarily, its accounts receivable, inventory, machinery, and real estate. They lend money based on the liquidity of the inventory and quality of the receivables, or the market value of the machinery and equipment and real estate. If your business has high financial leverage, but marginal cash flows, this type of loan can help generate liquidity.
Machinery & Equipment Asset Based Financing - How Rabin Can Help
Rabin specializes in this type of machinery and equipment asset based loan because we have been in the business of appraising all types of industrial machinery for over 60 years. Additionally, we have a strong ability to issue loans based on your unique combination of equipment or real estate or both.
Simply fill out the form on the right to contact Rabin to learn more about our machinery and equipment based financing programs. We are more than happy to answer any questions you may have regarding your unique situation and will get back to you promptly.
Rabin is an international company that creates liquidity through innovative solutions. We specialize in complex manufacturing facilities with idle or marginally productive assets. Rabin’s operations include selling entire plants, multiple plant locations, or surplus individual items by auction or liquidation and much more. Past auctions include recognizable names such as Hostess, Braniff Airlines, Montgomery Ward, and the Railway Express Agency. Let us provide your business with valuations that are based on actual sales through our heavy equipment appraisal services.