The financial resources of Mercantil Commercebank and its global reach are the foundation to offer corporate credit solutions through its Corporate Domestic Banking Unit. Our experienced team of professional lending officers can tailor the products and services that meet your business' needs, whether you are looking for short-term working capital or longer-term financing. You will be able to focus on your core activities while we develop strategies to finance your business and to minimize your borrowing costs.
Providing our clients with the financial support they need is our starting point to consolidate long term relationships.
Financing Options:
Working Capital Loans
Mercantil Commercebank can offer Working Capital Loans to bridge financial
gaps during the short-term operating cycle. These loans
can be unsecured or secured by a variety of asset types, including
accounts receivable and inventory, and can be combined with
other structures. Our Working Capital Facilities can
be committed or uncommitted depending on the client's need.
Revolving Credit Facilities
Mercantil Commercebank’s Revolving Credit Facilities may empower your business to use
leverage for working capital needs at reasonable costs and manage the business’
cash flow to maximize returns in seasonal periods. The Revolving Credit
Facility is usually a committed agreement to lend money up to a set limit for
a specified period of time, generally one to three years, during which the
company may draw and repay funds as needed, thus matching the duration of the
debt to the corporation's generals needs. The facility may also be uncommitted
at the discretion of Mercantil Commercebank. Furthermore, the facility may be secured
by current assets, making it an asset-based
loan providing liquidity for unexpected needs.
Revolving Credit Facilities can offer solutions for a company within a cyclical industry, borrowing money against its assets may result in a more predictable borrowing availability. On the other hand, if a company borrows against a multiple of earnings (EBITDA) and the earnings decline, the borrower will find itself being able to borrow less.
Asset Based Lending
Mercantil Commercebank offers a variety of Asset-Based solutions to meet the needs
of medium and large companies. We provide flexible financing
alternatives to clients with different borrowing needs to finance mostly Inventory,
Purchases or Account Receivables. Asset-based loans can be secured by a wide
variety of assets. Among the most common are Accounts Receivable and Inventory.
An asset-based loan is typically structured as a revolving line of credit without a scheduled repayment and on an interest-only basis. The lender advances funds based on a percentage of accounts receivable and inventory and, when such assets convert to cash, the advances are repaid accordingly. Ineligible collateral is not included in the borrowing base. A revolver allows a borrower to borrow, repay and re-borrow as needed over the life of the loan facility.
Asset-Based Facilities have built-in disciplines because the borrowing availability is based on advance rates against current accounts receivable. An ABL structure motivates borrowers to collect their receivables, reduce debt and decrease interest expenses.
Term Loans
Mercantil Commercebank’s Term Loans help you meet needs such as fixed assets financing, the purchase of machinery, other capital equipment, or Debt-Restructure. This product provides for periodic payments over a predetermined tenor. Term Loans can also generally be between one to five years.
Structured Finance Facilities
Mercantil Commercebank can structure and tailor credit facilities to meet your business very unique financing needs. Whether you are trying to mitigate risk, obtain pre-export financing, off balance sheet financing or maximize cash flow, Mercantil Commercebank can develop either a unique tailor-made structure or combine various structures to provide a single solution.
Rev.: April, 2007 | Back to Top
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