New Loan Criteria

Lighthouse will provide asset based commercial loans to small and mid-sized manufacturers, wholesalers, distributors and service companies that fit within the following criteria:

  • Types of Loans Offered – Revolving lines of credit and term loans secured by accounts receivable, inventory and machinery and equipment assets.
  • Loan Size – Credit Facilities ranging from $1,000,000 to $5,000,000, higher with participations.
  • Advance Rates – Up to 90% of eligible accounts receivable, up to 60% of eligible inventory, and up to 80% of machinery and equipment values.
  • Term Loans – Term loans for machinery and equipment are limited to 33% of the overall Credit Facility, which includes a line of credit with amortization up to 5 years.
  • Contract Term – Two to three year contracts for Credit Facilities.
  • Territory – Transactions considered throughout the Eastern and Central time zones of the United States.
  • Credit Criteria –
    • High leverage resulting from rapid growth, mergers, acquisitions or buy-outs acceptable.
    • Negative net worth acceptable
    • Operating losses acceptable
    • Positive cash flow or evidence of a positive cash flow from a business turnaround in progress or in the near future required
    • Adequate performance of working capital assets required
  • Loans Avoided – Real Estate loans and loans based on consumer receivables, contract receivables including progress billings, foreign receivables and medical receivables.

Loan Application Information

To apply for a Lighthouse loan, please collect and submit the following information:

  • Last 3 year-end financial statements.
  • Most recent interim financial statements with monthly breakdown.
  • Projections for next 12 months.
  • Detailed Accounts Receivable listing with invoices aged from invoice date.
  • Detailed Inventory listing.
  • Detailed Accounts Payable listing with invoices aged in accordance with terms offered.
  • Copy of recent borrowing base certificate from current lender.
  • Tax returns for the last 2 years for the Corporation.
  • If a Subchapter S Corporation, the last 2 years tax returns of principle stockholders.
  • Listing of all company locations with address and phone number.
  • Description of ownership structure and list of shareholder/partners with ownership percentage.
  • Copies of most recent appraisals (if any) of machinery and equipment and inventory.
  • Description of any current or pending legal issues.
  • Current personal financial statement for each principle owner.
  • Company brochures, marketing information and industry information.