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w w w.in s i g h t o n m f g . c o m September 2019 • /INSIGHT ON MANUFACTURING | 43 4. Asset-based loans. An asset- based loan is made specifically against your receivables, inventory or equipment. You provide an asset- based lender weekly or monthly borrowing bases and then they lend based on the asset formulas in those reports. The lender may require you to provide CPA-prepared financial statements as well as either reviewed or audited statements. While the interest rates are lower, you must provide a lot of information to the lender. These loans can range between $3 million and several hundred million dollars. … while only 27 percent believe we will enter a recession in the next 12 months, 63 percent are preparing for an eventual downturn. 5. Equipment finance. These are loans against your equipment — say it's worth $100,000, but in a resale, it would only be worth $60,000, so the lender loans you $50,000. You repay the loan monthly and usually get amortization between three to five years. If something goes wrong, the lender may try to repossess that equipment, so make sure you can repay the loan before you sign the paperwork. Before signing any paperwork, make sure to evaluate the costs and benefits fully with your financial professional. It is important to investigate the financial strength and track record of any alternative financing provider. Also, it helps to look for a financing partner with longevity and industry expertise so they can potentially help with ideas they've seen work in other businesses like yours. To hear more about alternative financing for manufacturers, attend my special presentation, "How & Why Alternative Financing Works for Manufacturers," at Manufacturing First on Oct. 30. Bill Elliott has 35 years of experience in commercial finance, with experience financing a variety of companies ranging from startups to publicly traded entities. He is an expert in asset-based lending and factoring. In addition to his lending expertise, Elliott also has entrepreneurial experience, owning a company and successfully raising $1.5 million in seed capital and $10 million in preferred equity and senior financing. F GETTING THE MOST FROM THE PAST TO PREPARE FOR YOUR FUTURE Contact us at (833) E-RECYCL to get started. Sadoff offers I.T. Asset Disposition (ITAD) that maximizes the value of your surplus electronics and helps you build a strategy for the next generation. Our expert consultants will identify your specific needs and create a customized solution. Visit us at SadoffEcycle.com to find out more. WE'LL HELP YOU DECIDE Refurbish & remarket? Recover parts for reuse? Responsibly recycle?