Accounts receivable
Finance from a Lending Source based on the value of invoices built up by a company to its customers, who owe the company money. These are known as "Good Book Debts", and are the Accounts Receivable.

"Pathfinder" have lenders who are happy to lend against these. Because the lending is based on the security of the outstanding debtors, even a Company with cash flow problems will qualify for funding.

Floor Planning
Mainly used for car, van and truck dealers though useful for other types of distributor where there is a rapid turnover. Floor Planning is simply where a lender will finance the business stock whilst it is on the premises and available for sale. As the stock is sold it will need to be replaced and therefore the lender may need to continue the lending.

Working Capital Loans
Short term lending up to one year. Mainly used for industries which are seasonal such as Toy Manufacturers ( preparing for Christmas) or Boat Builders (Summer). Lending is not normally continued until thirty to sixty days have passed before being re-established.

Warehouse Loans
Lending based on a proportion of the goods in a warehouse. Important decision is the turnaround speed of the inventory in the warehouse. Goods which have a high and wide demand will obtain a higher percentage loan of their market value than goods which are seasonal and have a lower demand.

Credit Agreement with a "Guarantor"
This is a loan where the borrower has a "guarantor" who agrees that should the borrower default or fail to make any payments on the loan, they will re-imburse the lender.

Lines of Credit
This is where the lender puts in place an open-ended agreement that they will keep available a pre-arranged amount of money to be used as and when necessary. Sometimes known as "revolving credit". Terms renegotiated on each anniversary depending on the way the account has been paid, and on the lenders "lending" criteria.

Contact Pathfinder for further information.