Unlocking working capital for growth

Santa Cruz County Bank is now offering Asset-Based Lending, a financing solution which provides working capital for technology, innovation and emerging growth companies. We spoke with the Director of Santa Cruz County Bank’s Asset-Based Lending Division, Lee Shodiss, to get the scoop on how to determine whether Asset-Based Lending is right for your business.

Here’s what Lee had to say: “A variety of companies can benefit by securing asset liquidity and flexible lines of credit. If your business is nearing profitability, experiencing large sales growth, has unleveraged accounts receivable and/or inventory, and is looking to improve cash flow held in those current assets, then let’s have a conversation.”

Lee also shared a couple of success stories about companies that have benefited from Asset-Based Lending.

Businesses that have benefited by securing an asset-based loan include a 1-year-old, closely held staffing company that supports multiple industries such as food processing and electronics. They received funding for working capital to bridge the difference between when their customers make payments on invoices and when they have to pay their employees. By securing a $1,000,000 line of credit and general banking services, the company is able to support their ongoing working capital needs, make payroll payments timely after aligning their working capital draws with their payroll cycles, and most importantly, attract new clients and grow its sales.

Next, a startup software company providing archiving software for banks and other financial institutions needed $50,000 to cover general operating costs as it transitioned from a financial institution that was unable to help. Asset-Based Lending provided an Accounts Receivable Working Capital Line of Credit and funded the receivables due from well-known banking institutions, which enabled the company to invest in software development and advancement of their products. The line was raised up to $5,000,000 as the company’s sales grew and profits eventually commenced.  

Find out more: www.sccountybank.com/assetbasedlending.cfm or contact Lee Shodiss at 408.421.9773 or lshodiss@sccountybank.com.