March, 2022
Inventory value in metals and mining tracks the price of the underlying commodity. When the metal price falls, stockpiles and finished product lose value even if volume stays the same.
Under an asset-based revolver, the borrowing base is revalued as prices and inventory levels change. Where prices swing widely, a lender may ask for inventory reports more often than it would in a business with stable values.
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.
