Companies, not finding a friendly welcome at traditional low-risk lending sources, often turn to MAS Capital for asset-based lending. Typically this is because a company’s cash flow is being squeezed or their financial performance and /or leverage ratios are not attractable to traditional lending institutions.
While low-risk lenders protect themselves with covenants such as debt-to-equity or debt-to-cash-flow ratios, MAS Capital offers alternatives for those companies who do not fit well within the low-risk loan criteria.
A key advantage of MAS Capital is that we impose fewer covenants but rely primarily on the assets pledged as security. MAS Capital protects itself by closely monitoring the value of their collateral. Because MAS Capital works closely with the company’s daily operations, we better understand their business model and industry sector. That is why they will often extend extra financing and stay the course during more difficult economic times.
While asset-based loans are more intrusive, for many companies, interest charges and administrative fees are only slightly more costly than bank loans. MAS Capital imposes minimal covenants compared to the unsecured, cash-flow-based loans of banks.
In more difficult times, financially managing a company is often a juggling exercise balancing cash inflows with expenses. MAS Capital is here to partner and support you during these stressful times.