Eligible Credit Card Receivables means, at the time of any determination thereof, each Credit Card Receivable that satisfies the following criteria at the time of creation and continues to meet the same at the time of such determination: such Credit Card Receivable (i) has been earned by performance and represents the bona fide amounts due to a Borrower from a Credit Card Issuer or Credit Card Processor, and in each case originated in the ordinary course of business of such Borrower, and (ii) in each case is acceptable to the Agent in its Permitted Discretion, and is not ineligible for inclusion in the calculation of the Borrowing Base pursuant to any of clauses (a) through (k) below. Accounts 90 days past invoice date, or 60 days past due date: Becuase factors and asset based lenders will never know your customers as well as you do, if an invoice goes beyond 60 days from due date, the chances are they are going to make that invoice ineligible. His research has been shared with members of the U.S. Congress, federal agencies, and policymakers in several states. Borrowing Base Calculation Service - MrMonarch Advances are subject to a borrowing base formula based on eligible collateral. First, customer concentrations increased. B) Home equity line of credit - The real estate prior liens home equity line of credit (HELOC). Cync Asset-Based Lending - Cync Software | Cloud-Based Financial needs. Ineligible Receivables means Receivables that are not Eligible Receivables (as such term is defined in the First Tier Agreement). B) LIFO - The inventory ineligible last-in-first-out (LIFO) amount. "Cabot Oil & Gas Corporation Form 10-Q, March 31, 2016," Page 8. Image Source: www.publishedguides.ncua.gov. The five Cs of credit are important because lenders use them to set loan rates and terms. Asset-based loans (ABL) can sit alongside other debt instruments in the capital structure. (electronic software book) on Asset Based Lending Ineligible accounts receivable and
For example, if the value of the collateral drops, the credit limit declines along with it. Prepare for future growth with customized loan services, succession planning and capital for business equipment or technology. These include white papers, government data, original reporting, and interviews with industry experts. Change in Borrowing Base; Ineligible Consumer Loans Borrowers have been warned to brace for Bank of England interest rates above 5% before the end of the year, after an unrelenting rise in the cost of food meant UK inflation dropped by less than . : zq[! Generally, lenders won't provide financing equal to 100% of the collateral value, instead offering financing based on a discount factor. An ABL is a committed multiyear credit facility whereby the legal documentation provides for pre-negotiated, objective, operational and covenant flexibility. If liquidation of collateral (e.g., a forced sale by the bank or borrower), is an ARIF loan's most likely source of repayment, the loan would normally be classified as substandard at best. The field examination may include one or two JPMorgan Chase field exam professionals onsite for an average of 4 to 5 business days (may vary upon scope and size). Inventory, A/R, and other tangible assets can also be used to back small business loans. Purchased Receivables means all those accounts, receivables, chattel paper, instruments, contract rights, documents, general intangibles, letters of credit, drafts, bankers acceptances, and rights to payment, and all proceeds thereof (all of the foregoing being referred to as "receivables"), arising out of the invoices and other agreements identified on or delivered with any Invoice Transmittal delivered by Seller to Buyer which Buyer elects to purchase and for which Buyer makes an Advance. Eligible Accounts Receivable means the gross amount of all of each of the Borrowers' Trade Accounts Receivable that are subject to a valid, first priority perfected security interest in favor of the Agent, on behalf of the Lenders, which conform to the warranties contained herein and which, at all times, continue to be acceptable to the Agent in the exercise of its reasonable business judgment, less, without duplication, the sum of: (a) any returns, discounts, claims, credits and allowances of any nature (whether issued, owing, granted, claimed or outstanding), and (b) reserves for any such Trade Accounts Receivable that arise from or are subject to or include: (i) sales to the United States of America, any state or other governmental entity or to any agency, department or division thereof, except for any such sales as to which such Borrower has complied with the Assignment of Claims Act of 1940 or any other applicable statute, rules or regulation, to the Agent's satisfaction in the exercise of its reasonable business judgment; (ii) foreign sales, other than sales which otherwise comply with all of the other criteria for eligibility hereunder and are (x) secured by letters of credit (in form and substance satisfactory to the Agent) issued or confirmed by, and payable at, banks having a place of business in the United States of America, or (y) to customers residing in Canada provided such Accounts do not exceed Three Million Dollars ($3,000,000.00) in the aggregate at any one time; (iii) Accounts that remain unpaid more than sixty (60) days from the relevant invoice due date or one hundred twenty (120) days from invoice date; (iv) contra accounts (including, but not limited to, co-op accounts); (v) sales to Parent, any other Borrower, any Subsidiary, or to any Affiliate of a Borrower; (vi) xxxx and hold (deferred shipment) or consignment sales; (vii) sales to any customer which is: (A) insolvent, (B) the debtor in any bankruptcy, insolvency, arrangement, reorganization, receivership or similar proceedings under any federal or state law or (C) negotiating, or has called a meeting of its creditors for purposes of negotiating, a compromise of its debts; (viii) all sales to any customer if fifty percent (50%) or more of the aggregate dollar amount of all outstanding invoices to such customer are unpaid more than sixty (60) days from the relevant invoice due date or one hundred twenty (120) days from invoice date; (ix) pre-billed receivables and receivables arising from progress billing; (x) an amount representing, historically, returns, discounts, claims, credits, allowances and applicable terms; (xi) sales not payable in United States currency; (xii) sales to an Account Debtor whose total obligations owing to Borrowers exceed twenty percent (20%), in the aggregate, of Borrowers' Trade Accounts Receivable; (xiii) amounts due from any credit card issuer or processor that remain unpaid more than five (5) days from the relevant due date; and (xiv) any other reasons deemed necessary by the Agent in its reasonable judgment, and which are customary either in the commercial finance industry or in the lending practices of the Agent and/or the Lenders and which are relevant to Borrowers' Trade Accounts Receivable. Our loan underwriting includes a deeper understanding of the company's strategic initiatives and goals and confirmatory due diligence, including the review of historical and projected financial statements, borrowing base collateral and insurance. Eligible Account Receivable as of any Borrowing Base Date, an Account Receivable as to which the following requirements have been fulfilled: Accounts Receivable means all Accounts and all right, title and interest in any returned goods, together with all rights, titles, securities and guarantees with respect thereto, including any rights to stoppage in transit, replevin, reclamation and resales, and all related security interests, liens and pledges, whether voluntary or involuntary, in each case whether now existing or owned or hereafter arising or acquired. Xpediar Site Transferred Receivable means any Sold Receivable or Contributed Receivable; provided, that any Receivable repurchased by an Originator thereof pursuant to Section 4.04 of the Sale Agreement shall not be deemed to be a Transferred Receivable from and after the date of such repurchase unless such Receivable has subsequently been repurchased by or contributed to the Borrower. Ineligible Account means an Account that at the time of determination is not an Eligible Account. Clients typically submit borrowing base calculations on a monthly basis. Excluded Receivables means, as of any date of determination, all accounts receivable referred to in Item 1 of Schedule 7.01. We also reference original research from other reputable publishers where appropriate. MrMonarch - On-site or web-based Training and Model Building for To get the most accurate estimate of a borrowing base, you will need to be familiar with the various discount rates. Dependable and timely delivery of reports. Accounts Receivable Subsidiary means any Wholly Owned Subsidiary of the Company (i) which is formed solely for the purpose of, and which engages in no activities other than activities in connection with, financing accounts receivable of the Company and/or its Restricted Subsidiaries, (ii) which is designated by the Company as an Accounts Receivables Subsidiary pursuant to an Officers' Certificate delivered to the Trustee, (iii) no portion of Indebtedness or any other obligation (contingent or otherwise) of which is at any time recourse to or obligates the Company or any Restricted Subsidiary in any way, or subjects any property or asset of the Company or any Restricted Subsidiary, directly or indirectly, contingently or otherwise, to the satisfaction thereof, other than pursuant to (1) representations, warranties and covenants (or, any indemnity with respect to such representations, warranties and covenants) entered into in the ordinary course of business in connection with the sale (including a sale in exchange for a promissory note of or Equity Interest in such Accounts Receivable Subsidiary) of accounts receivable to such Accounts Receivable Subsidiary or (2) any Guarantee of any such accounts receivable financing by the Company or any Restricted Subsidiary that is permitted to be incurred pursuant to Section 4.06 and Section 4.07, (iv) with which neither the Company nor any Restricted Subsidiary of the Company has any contract, agreement, arrangement or understanding other than contracts, agreements, arrangements and understandings entered into in the ordinary course of business in connection with the sale (including a sale in exchange for a promissory note of or Equity Interest in such Accounts Receivable Subsidiary) of accounts receivable in accordance with Section 4.16 and fees payable in the ordinary course of business in connection with servicing accounts receivable and (v) with respect to which neither the Company nor any Restricted Subsidiary of the Company has any obligation (a) to subscribe for additional shares of Capital Stock or other Equity Interests therein or make any additional capital contribution or similar payment or transfer thereto other than in connection with the sale (including a sale in exchange for a promissory note of or Equity Interest in such Accounts Receivable Subsidiary) of accounts receivable to such Accounts Receivable Subsidiary in accordance with Section 4.16 or (b) to maintain or preserve the solvency, any balance sheet term, financial condition, level of income or results of operations thereof. Asset Based Lending Software ABL Audit, Ineligibles, Operations complete source for ineligibles, reserves, ratios and calculations available
asset based lending ineligible collateral reference
Construction and Land Development Loans Construction and land development loans include construction and land development loans outstanding and unfunded commitments to fund construction and land development loans, whether irrevocable or unconditionally cancellable. Eligible Accounts means those Accounts created by a Borrower in the ordinary course of its business, that arise out of such Borrowers sale of goods or rendition of services, that comply with each of the representations and warranties respecting Eligible Accounts made in the Loan Documents, and that are not excluded as ineligible by virtue of one or more of the excluding criteria set forth below; provided, that such criteria may be revised from time to time by Agent in Agents Permitted Discretion to address the results of any information with respect to the Borrowers business or assets of which Agent becomes aware after the Closing Date, including any field examination performed by (or on behalf of) Agent from time to time after the Closing Date. Additional filters are available in search. Ineligible Accounts Discussed - Commercial Finance Factoring, Part 1! Collateralization is the use of a valuable asset to secure a loan against default. PDF FactorSoft - Jack Henry & Associates