How our Business Lines of Credit Work
At inception we work with you to calculate your eligible accounts receivable. Each new sale by you increases the amount of eligible accounts receivable. Each paid invoice reduces that amount.
Great Lakes takes that amount of eligible accounts receivable multiplied by the agreed upon advance rate to determine how much we can lend on accounts receivable at that time.
You continue to prepare your invoices as you always have but those invoices will direct your customer to pay to a lock box that we open in your name. Once your customer’s payment is received in that lockbox we use those funds to reduce your loan balance. As long as the eligible accounts receivable times the advance rate exceeds the loan balance we can advance that difference to you.
You maintain your bank account wherever you want. We will wire funds to your account at that bank as often as daily.
Eligible inventory is calculated weekly or even monthly. That amount of eligible inventory times the advance rate is added to the amount we can lend on accounts receivable to determine the total amount we can lend that day.
- Great Lakes offers loans from $100,000 – 2,000,000
- Great Lakes offers advance rates up to 85% of account receivable
- Great Lakes offers advance rates up to 50% of inventory
- Quick approval and funding; we can normally approve and fund your transaction within four weeks of receiving your financial information
- No pre-payment penalties; you can exit the contract by giving a sixty day notice
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