Tag

advance rate

4 insights

Four descending columns. Inventory at cost is $10.0 million, eligible inventory is $9.5 million, the appraised net orderly liquidation value is $5.37 million, and the loan at 85 percent of that value is $4.56 million, or 46 cents on the cost dollar.

$10 Million of Inventory. $4.6 Million of Borrowing.

A specialty retailer carries $10 million of inventory at cost. An appraiser values it at $5.37 million in an orderly liquidation, and the lender advances 85 percent of that, which is 46 cents on the cost dollar.
Financing StrategyBorrower Advisory
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Two lines of cumulative cash out over 36 months. A used excavator at $200,000 takes more cash every month for two years and is paid off at month 24 at $218,686. A new excavator at $400,000 starts lower, overtakes the used machine around month 28, and is still being paid at $6,312 a month.

The Used Machine Cost Half as Much. It Costs More Every Month.

A ten-year-old excavator at half the price of a new one needs $16,000 more at closing and $467 more a month. Older equipment finances on shorter terms against lower appraisals, and the listed price shows neither.
Financing StrategyBorrower Advisory
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A hundred-square waffle of a $6 million receivables ledger showing 36 squares removed as ineligibles, 13 squares taken by the advance rate and dilution reserve, and 51 squares of actual availability at $3.04 million.

The Ledger Says $6 Million. The Borrowing Base Says Half.

Advance rate is the number every borrower asks about and the last one applied. Before it touches anything, the ineligibles come out, and on a $6 million receivables ledger they can remove $2.2 million without a single invoice being bad.
Financing StrategyBorrower Advisory
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Three proportional circles comparing July 2026 equipment finance volume of $14.3 billion against the previous all-time monthly high of $11.5 billion, with small-ticket volume of $6.4 billion shown as nearly half of the record month.

The Headline Was AI. The Record That Matters Was Yours.

July set an all-time monthly record in equipment finance, and the coverage credited AI capital expenditure. Small-ticket volume set its own record in the same month, up 84.5 percent, and that is the segment mid-market borrowers actually borrow in.
Capital Markets & TrendsBorrower Advisory
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