Deschutes Capital provides revolving lines of credit and working capital loans for accounts receivable and inventory financing to middle market companies with revenues in excess of $25 mil., including manufacturers, distributors, retailers and service firms.

With our strength in structured finance, we can help you manage your firm's : credit risk exposure to customers and inventory risk with credit insurance, inventory management and other risk management tools.

Financing rates are typically Prime + 1% to 3%, although will depend on your particular company's financial profile and market conditions.

Advance rates for lines of credit secured by accounts receivable depend on the creditworthiness of your customers and the amount of dilution (returns, uncollectible, etc.) that your company experiences, but typically range from 60% to 85% of your accounts receivable. Advance rates for lines of credit secured by inventory depend on the future orderly liquidation value of your inventory and the level of your inventory relative to the amount of your accounts receivable outstanding, but typically range from 30% to 65% of the cost of your inventory. To the extent that a buyer can stand by to purchase the inventory upon request or the inventory can easily be sold to a broad market even during difficult times, higher advance rates can be achieved.

If leveraged financing is needed, an asset based subordinated loan may be available that could be secured by the remaining inventory. The inventory orderly liquidation value will be a critical determinant. We can also assist with trade financing, such as, purchase order financing to leverage specific opportunities when products are pre-sold.

Lines of credit are preferred, but when necessary, factoring (that is, the sale of accounts receivable) can be employed. Factoring, as a financial tool, allows opportunities that otherwise would not be possible without giving up equity in a company. In addition, corporations can sell their accounts receivable to manage their debt to equity ratio and debt to assets ratio, since factoring is the sale of accounts receivable rather than a debt secured by the accounts receivable.

Deschutes Capital appreciates the opportunity to explain our corporate financial services. We can save you time and money, allowing you time to focus on running your business. Whether you need a line of credit for working capital or need to sell your accounts receivable to raise cash, contact Deschutes Capital today. Click below to submit an inquiry or to discuss your corporate financing needs.

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