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Collateral eligibility and valuation establish which assets can support a loan and what they are worth. The amount actually available is then determined by advance rates, which vary by collateral type, together with the transaction structure and underwriting. Eligible accounts receivable typically support a higher advance rate than inventory, equipment, or real estate.

A secured term loan generally provides financing under an agreed repayment structure, often for a significant investment, acquisition, or refinancing need. A Ledgered Line of Credit is a revolving facility primarily supported by eligible accounts receivable. Borrowing availability can change as receivables are generated, collected, and evaluated under the borrowing-base requirements. The appropriate structure depends on the borrower’s financing objectives and available collateral.

Eligible collateral may include accounts receivable, inventory, machinery, equipment, and certain real estate assets. Collateral suitability depends on factors such as ownership, asset quality, marketability, valuation, and existing liens. Great Elm determines eligible collateral through its underwriting and due-diligence process.

Advance rates and loan-to-value ratios vary by collateral type and depend on each asset’s quality, marketability, and appraised value. They are set through underwriting for each loan.

Loan terms are established in the credit agreement and depend on the collateral, the borrower’s circumstances, and the transaction. Maturity, amortization provisions, and repayment requirements are negotiated for each financing.

A material decline in collateral value may affect compliance with the facility’s requirements. Depending on the credit agreement, this could result in additional reporting, collateral requirements, repayment obligations, or other adjustments. Great Elm evaluates collateral and monitoring requirements according to the structure of each loan.

Yes. Depending on the transaction, secured term loans may be structured alongside revolving credit facilities or other permitted financing arrangements. Great Elm’s broader offering includes Ledgered Line of Credit, Unitranche Loans, and Junior Capital Loans. The suitability and relationship between facilities depend on collateral, lien priorities, existing obligations, and the applicable loan documents.

Yes. Existing financing agreements may contain lien restrictions, covenants, consent requirements, or repayment provisions that must be addressed before entering a new secured lending arrangement. Great Elm evaluates existing obligations and coordinates applicable requirements during the financing process.

Businesses with substantial eligible collateral may have financing opportunities even when recent financial performance or balance-sheet conditions make conventional borrowing difficult. Eligibility is not determined by collateral value alone. Great Elm also evaluates management experience, business viability, repayment prospects, financial circumstances, and the proposed transaction.

Depending on the structure, borrowers may be required to provide periodic financial statements, collateral reports, borrowing-base information, or other documentation. Appraisals and field examinations may also be part of ongoing monitoring. The reporting requirements and frequency are established in the financing agreement.

Costs depend on the transaction and are established in the credit agreement. Beyond interest, they may include lender fees and third-party expenses, such as legal and appraisal costs, connected with evaluating and documenting the collateral.