Daily News: July 25, 2013

Federal National Now Offers Asset Based Lending

Federal National Commercial Credit announced that it now offers asset-based lending to provide a better financing fit to more small businesses. Asset-based lending provides financing based not only upon accounts receivable, but also on modest amounts of inventory and/or equipment.

Federal National said it can now be a broader solution to companies with diverse assets types or numerous customers and receivables that are not as well served by a factoring approach.

The company noted its recent launch of its ABL product capability, providing a $1.25 million facility to a specialty lumber and milling company in the northeast. Federal National’s financing, which featured a line of credit with a sub-limit to finance inventory, allowed the firm to pay off its existing factoring company, close more business, and take advantage of lucrative supplier discounts.

As government contractors and small businesses still find it difficult to borrow funds from banks, the new ABL service provides greater amounts of financing for more businesses.

Federal National services provide working capital, speed up cash-flow, and enable clients to pursue new growth opportunities. Small businesses that do not qualify for bank financing or do not qualify for bank financing in adequate amounts often obtain all the working capital they need from Federal National’s asset based lending or invoice factoring.