Asset based lending is a financing philosophy where the amount of the loan is primarily based on the value of the borrower’s collateral as opposed to the overall strength of the balance sheet or the amount of cash flow. To find more information about the Asset Based Lending product from Lighthouse, click here.
Lighthouse does not factor accounts receivable. We do not purchase invoices or request that your clients make payment directly to Lighthouse Financial. Much like a bank line of credit, Lighthouse files security instruments against the appropriate collateral and advances funds based on borrowing base formulas. However, if factoring is what you desire, we can provide you with several reputable companies with which we are familiar.
Yes. Lighthouse is a traditional asset based lender that is comfortable advancing against inventory collateral in conjunction with accounts receivable. We do not lend against inventory only. We consider our structuring capabilities a competitive advantage when working with small to mid-size companies. For more information about inventory structure and advance rates click here.
Yes. Lighthouse will make term loans secured by machinery and equipment in conjunction with a line of credit. We do not provide stand-alone term loans. For more information about term loan structure and advance rates click here.
We do not lend directly against real estate. Occasionally, we will use real estate collateral for additional support to increase advance rates on eligible collateral. We also have multiple partners to provide real estate financing in conjunction with Lighthouse financing.
It generally takes between 2 and 3 weeks after a signed proposal is received to complete the required due diligence investigations to secure a loan approval. If all information is available at the time we receive the signed proposal, an approval can be secured in as little as 10 days.
Once a loan is approved, the preparation and finalization of the required loan documents can be completed within a few days. Closing can occur at any time after this depending on the prospective client’s needs. From start to finish, it typically takes between 3 and 6 weeks to approve, close and fund a new loan.
Lighthouse is a privately held commercial finance company. We have maintained the same ownership structure since our inception 30 years ago. We are not subject to bank regulations.
Lighthouse provides asset based loans to well managed manufacturers, wholesalers, distributors, and business service providers. A typical Lighthouse borrower is having difficulty sourcing financing from traditional banks as a result of excess leverage resulting from prior losses, growth or other events affecting the balance sheet. To learn more about Lighthouse’s loan products click here