Utilizing Contracts as Collateral in Asset-Based Lending

With credit tight, even cash healthy companies with sales contracts can find it difficult to secure and to support their growth opportunities. This article looks at the value of the contract and the underlying asset as a means to collateralize the Quick loans agreement online.

“In very general terms, contracts derive value from their capacity to generate cash flows to their owners. The value of contracts is a combination of both the expected future cash flows and the uncertainty associated with these cash flows.During this continued difficult economic period where liquidation values of fixed assets are continuing to decline in many instances, a lender may be able to satisfy the collateral base requirements in certain scenarios through the inclusion of intangible assets, such as contracts, where the client would not otherwise qualify for that amount when only looking at traditional collateral sources.” Source: AccuVal | Insights | Featured Articles | Utilizing Contracts as Collateral in Asset-Based Lending

If this is something to talk with someone about let us know by replying to this post or using the “Contact Us” tab. Foxwood Associates has advisers with experience in specialized debt structures.

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