November, 2022
Consumer products companies often pay suppliers months before a selling season and collect from retailers after it. Cash is tightest in the months between those two payments.
Retail receivables can support an asset-based revolver, but lenders watch two things closely. A few large retailers may account for most of the balance, and retailers often take chargebacks for late or incorrect shipments. Both can reduce how much of the receivables counts toward the borrowing base.
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.
