What is a Borrowing Base Certificate (BBC)?

With asset-based loans, the BBC is the way the borrower and lender keep track of the collateral supporting the current loan and future borrowing needs. It provides loan availability or deficiency based on the collateral.

What type of reporting must I do when I have a Worthy Lending loan?

Most borrowers are required to provide; a minimum of two borrowing base certificates per month using fresh sales, inventory and aging data; monthly financial statements, interim and company prepared 45 days in arrears, other as needed.

How long of a process is it to open a Worthy Lending loan?

Once Worthy Lending has received from an applicant, a signed proposal and its due diligence deposit, Worthy Lending begins its underwriting. In most cases, a collateral/field audit is arranged and if inventory is being financed an appraisal is scheduled. Usually if the applicant is readily compliant with requests, a typical loan can be closed (following the execution of the proposal and receipt of the due diligence payment) in about three weeks.

How do I repay the loan?

If the loan is not a typical revolving line of credit based on receivables, which more or less pays itself down, the loan documents will contain an amortization schedule in which all or most of the loan’s principal balance will be retired by the loan’s maturity date.

What type of assets may I borrow against?

Worthy Lending will lend on Accounts Receivable, Inventory, Equipment and Purchase Orders. Each asset class has its own valuation process some of which are independently appraised by specialists in the particular products being reviewed.

    • Inventory-Finished Goods and Raw Materials only – not work in progress.
    • Receivables-Invoices for goods or services already provided to strong or multiple customers
    • Equipment-Unencumbered equipment used by the borrower in the manufacturing of the product.
    • Purchase Orders (PO)-Worthy Lending will finance the purchase of product that has already been sold as demonstrated by an executed customer PO. Up to 90% of the supplier’s invoice will be funded.
What will Worthy Lending require on an ongoing basis?

Worthy Lending requires minimally; a) once per year, a field audit similar to the one done during the application process, b) once per year, an inventory refresh appraisal c) periodically, real estate appraisal (if such collateral is being used for finance availability), periodically equipment re-appraisal (if such collateral is being used for finance availability)

Can I pay-off my balance at any time?

Most of the Worthy Lending loans have no penalty for paying off the loan prior to maturity.

Will Worthy Lending take a security interest in my company’s assets (UCC-1)?

Yes. Worthy Lending will secure its loan with an “all assets” UCC-1 filing indicating that it has all the borrower’s business assets securing its loan.

Will I have to personally guarantee the loan?

Yes. Worthy Lending requires the principals of the borrower to personally stand behind the loan being issued.

Will Worthy Lending review my personal credit?

Yes. The KYC (Know Your Client) laws in lending require that Worthy Lending review personal credit history. The personal credit report review is important for Worthy Lending to understand with whom it is doing business.