​

​

What is Asset-based lending?

Asset-based lending is the business of loaning money in an agreement that is secured by collateral. Such a loan may be secured by inventory, accounts receivable, equipment, or other property owned by the borrower.

​

What Assets can I use as collateral?

Thrifty Money considers anything that can be converted into cash upon short notice; which have not been pledged as security to any other party; have no bond or lien registered against it and is legally available to be used as security for the loan required.

​

What is cash flow?

Cash flow in simple terms means the cash coming into and going out of a business. Under normal circumstances, a business’s operations are funded by its cash flow. If there is more cash coming into a business than what is needed to pay for its operations such a business would have a positive cash flow. If the cash coming into the business is not enough to pay the business’s financial obligations however, such a business would be experiencing a negative cash flow. 

 

What is working capital?

Working capital is the difference between a company’s current assets and its current liabilities. Traditionally working capital is used to expand, grow, renew and/or update the business.

 

Small businesses sometimes need loans to meet their daily operations needs until their earning assets are sufficient to cover their working capital needs. We often lend short-term money to small businesses to enable them to get off the ground and grow. As the business grows and their own assets enable them to earn money, they can repay the working capital loan to the bank. Working capital loans may have higher interest rates than, for example, real estate loans since banks consider them riskier.

 

What are accounts receivable?

Accounts receivable represents all money due and payable to a business.

 

What is bridging finance?

Bridging loans are designed to help businesses bridge the gap between the date at which an income-generating transaction is concluded and the date upon which the funds from that transaction is received by the business.

​

What is purchase order finance?

This type of finance provides funding for a business with purchase order for which it needs to pay its suppliers for material and services upfront, prior to the business being able to fulfill and paid for that order.

 

What is Debt consolidation?

Debt consolidation is when a company takes up a new loan in order to settle all other active loans within the business. 

​

What Is The Borrowing Base?

The borrowing base is the percentage of the collateral's market value that Thrifty Money will let you borrow.