Commercial Financing
Milberg offers commercial loans outside of the structure of factoring in the form of Accounts Receivable lending. In certain situations, Milberg will also lend against inventory, often on a seasonal basis, as well as on other assets. However, Milberg does not make standalone inventory or fixed asset loans.
Commercial or asset-based lending is secured by client assets as follows:
Receivables Financing:Milberg lends money secured by accounts receivable. Unlike in factoring arrangements, customers continue to pay the client directly. The client forwards collections directly to Milberg, which are applied as received to outstanding loans. Clients do not notify their customers of Milberg's involvement. Clients retain the responsibility for the credit they extend to their customers and for the collection of their receivables. Inventory Financing:Milberg lends money secured by inventory as a way of supplementing receivables financing. Equipment Financing:Milberg makes medium term loans available, secured by equipment, as a way of supplementing receivables financing. Funds can be used for working capital or to acquire new capital equipment. Mortgages:To supplement working capital financing, Milberg makes medium term loans secured by real estate. Acquisition Financing:Milberg may increase client lines or put new credit facilities in place to fund acquisitions. |