Reliable Funding through Efficient Implementation

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Setting up A Credit Facility
Our business consultants will work with you to set up a revolving line of credit, referred to as a “credit facility”. A credit facility can serve as a business cash machine in which you withdraw the amounts you need to cover business expenses. Accounts receivable are the most frequently used form of collateral, but mortgages, equipment and other assets may also qualify. The value of the assets remain on your financial statements even though they are committed as security for the ongoing loan.

Capital Amount
UFS has developed a straightforward method for determining the optimal size of a credit facility.

Borrowing Base: First, a UFS consultant will examine your receivable accounts, and determine if there are any ineligible receivables. Ineligible receivables are generally defined as accounts or portions of accounts that are at a high risk for non-payment. They are amounts that you may expect to write-off as uncollectable. UFS utilizes historical data and statistics to measure the ineligible amounts. Ineligibles are then subtracted from the total, and the balance is your company’s borrowing base.

Advance Rate: Next,we will determine your rate of advance. Our advance rates can go as high as 90 percent. To calculate your maximum line of credit, the advance rate is multiplied against the borrowing base.