September, 2023
In food and beverage lending, inventory takes more work to value than receivables. Raw ingredients and finished product are appraised separately, and goods near their expiration date or held at a third-party warehouse may be left out of the borrowing base.
Advance rates on eligible inventory are generally lower than on receivables. A term loan in the same facility can be secured by other assets, such as equipment.
About Great Elm Commercial Finance
Great Elm Commercial Finance (“Great Elm”) provides asset-based lending facilities to a wide gamut of middle-market businesses – serving as a one-stop shop for entrepreneurs, private equity firms, investment banks, and turnaround managers who need capital in tandem with speed and certainty. Our goal is to enable our financing partners to execute and deliver on their plans with industry leading, transparent commercial lending.
