Turning short-term assets into money.(Business Banking)

San Diego Business Journal | March 5, 2007| | Copyright

Businesses that generate short-term assets like accounts receivable or inventory often are faced with a situation in which, for all practical purposes, they are financing their customers. As accounts receivable and inventory grow, so does the additional working capital necessary to carry them.

An answer to this common dilemma for many businesses is an asset-based formula line of credit. This type of financing is offered on a revolving basis and can be used to generate working capital or to meet specific short-term cash needs. Under an asset-based line of credit, a ...

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