Revolver Loan

A revolver loan allows you to borrow, repay and reborrow funds as needed for the life of the loan.

Advance Rates

• Individually crafted asset-based lending advance rates against accounts receivable and inventory (finished goods, eligible raw materials and/or eligible work in process)
• Inventory sublimit as appropriate for certain industries (may increase and decrease due to seasonal swings)
• Underwriting criteria provide for stability of collateral valuations and mix that can be underwritten and controlled structurally through discretionary advance rates, reserves and ineligibles

Collateral Monitoring

• Monitored on an asset-based borrowing base at least monthly
• Field examinations at least annually
• Typically requires an individually tailored financial covenant package tracked on a monthly or quarterly basis
• Dominion of funds or springing dominion

Operating Performance

• Debt service coverage test

Excess Loan Availability

• Reasonable average excess loan availability
• Adequate excess borrowing base availability provides for:
  • Normal working capital fluctuations
  • Seasonal swings (accommodates seasonal secured over formula advances through step-ups and step-downs in advance rates)