Match your assets to the lender that wants them.
Lenders differ sharply on which collateral they will lend against, how they treat concentration and foreign receivables, and how closely they monitor. We prepare your case, check it the way a lender would, and introduce you to the few whose criteria fit. Facilities from $5 million, typically $10 million to $250 million.
Who this is for
- Manufacturers, distributors, wholesalers, service companies and retailers with meaningful receivables or inventory.
- Companies in growth, seasonal swings, an acquisition, a refinancing, a turnaround or a recapitalisation, where earnings alone understate borrowing capacity.
- Sponsors financing a portfolio company.
Not a fit: facilities under $5 million; companies with little collateral; consumer lending.
What we do
- Assess fit. A short conversation about size, collateral, timing and use of proceeds. No documents.
- Engage in writing. NDA and engagement terms, including every fee, before information changes hands.
- Prepare the case. We review your collateral the way a lender's examiner will, flag ineligibles and concentrations before they surprise you, and assemble the package.
- Introduce. To lenders whose written criteria match, never a broadcast list. Shared only in an access-controlled data room under NDA.
- Compare and close. We help you compare term sheets, support diligence and manage the process to close. The lender underwrites and funds.
What lenders will ask for
The package, as a checklist (a secure data room is opened after the NDA):
- Two to three years of financial statements, current interim statements, and projections
- Accounts receivable aging, by customer, with terms
- Inventory by category and location, with costing method
- Customer concentration and the top customers' credit quality
- Equipment list and any existing appraisals
- Existing debt, liens and intercreditor arrangements
- Organisation chart, ownership and key management
- Recent audits or field examinations, if any
- Use of proceeds and the intended closing date
How the facility is sized
| Collateral | How lenders usually treat it (typical, varies by lender) |
|---|---|
| Receivables | Eligible receivables, commonly at an advance rate in the 80% to 90% range. Ineligibles typically include invoices well past due, amounts owed by affiliates, foreign debtors beyond set limits, and contra accounts |
| Inventory | Raw materials and finished goods often at a lower advance rate, commonly by reference to cost or appraised liquidation value. Work in progress is often excluded |
| Equipment and real estate | Sometimes added as a term tranche against appraised value |
| Concentration | Limits on how much of the base any one customer can represent |
These are descriptions of how the product generally works, not terms we offer or a prediction of what a lender would offer you. See the glossary.
Where applications get stuck
- Concentration. One customer is half the receivables, so the borrowing base shrinks.
- Ineligibles. Aging, disputes and contras are found at the first field exam, not before.
- Reporting. Lenders want weekly or monthly borrowing-base certificates. A company that cannot produce them reliably will struggle.
- Control of cash. Many facilities direct collections to the lender. Companies that did not expect this feel it as a loss of control.
- Existing liens. A prior lender's lien or a landlord's claim on inventory can block a deal late.
- Timing. A field exam and appraisal add weeks. Plan for them.
Fees
Your engagement agreement sets out what you pay and when, before you sign. In short: an underwriting fee at engagement, and an introduction fee that is payable only if a financing closes with a lender we introduced. The underwriting fee does not guarantee that any lender will offer terms.
Questions
What size of company is this for? Facilities of $5 million and up, typically $10 million to $250 million. Smaller needs are better served elsewhere, and we will say so.
Will you tell me whether I am likely to get financing? Yes. In the first conversation and again after we review your package. If it is unlikely, we say why.
Who sees my information? Only lenders whose criteria fit, only after an NDA, only in an access-controlled room where every view is logged.
Do you lend? No. Lenders underwrite and fund. We introduce.
How long does it take? It depends on your information and the lender's diligence. Field examinations and appraisals are usually the longest steps.
Commercial lending introductions are provided by River Guide Labs, LLC. They are not securities transactions and are not offered through Finalis Securities LLC. Securities transactions are offered only through Finalis Securities LLC, Member FINRA / SIPC. River Guide Labs does not lend, commit capital or guarantee that any financing will be offered. Size ranges are typical, not offered terms and not a record of past transactions.