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Asset-Based
Lending
When your company experiences
working capital shortages, a customized asset-based loan from Compass
can provide the funds you need to keep your business running smoothly.
An asset-based loan
can take one of two basic structures. The first is a revolving line
of credit that provides your company with funds directly proportional
to fluctuations in your accounts receivable and inventory. The second
provides for Compass to purchase your invoices. Under both structures,
as receivables increase, your ability to borrow increases. Then,
as invoices are collected, your line is paid down again. Because
the funds are available to match the demands on your resources,
your company is able to operate unhindered by negative cash flow
cycles.
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