This indicative term sheet matches the framework in our Revolving Credit Facility guide. It describes a receivables-backed revolving line sized by a borrowing base, priced as U.S. Prime plus a negotiated margin. Interest is charged on drawn balances only. Lenders are selected through a controlled auction after underwriting. Ranges below are typical and finalized during credit approval and documentation.
| Item | Term | Notes |
|---|---|---|
| Borrower | Corporate borrower meeting eligibility criteria | Operating history 24 to 36 months, verifiable financials, recurring invoicing |
| Arranger / Role | Financely Group as arranger, structurer, and distributor | We do not lend from our balance sheet |
| Lender | Bank or credit fund in our forward flow network | Selected after controlled auction and formal approvals |
| Facility Type | Receivables-backed revolving credit facility | Optional conservative inventory component if approved |
| Purpose and Use of Proceeds | Working capital, inventory procurement, bridging receivable cycles | Not for speculative activity or unrelated long term investments |
| Commitment (Ceiling) | USD 1,000,000 to USD 25,000,000 typical | Ceiling generally up to 80% of prior 12 months invoicing; larger by exception |
| Borrowing Base Formula | Availability = AR Advance + Inventory Advance − Reserves | Calculated on certificates; replenishes as collections are received |
| AR Advance Rate | 80% to 90% of eligible accounts receivable | Rate set in underwriting based on quality and concentrations |
| Inventory Advance Rate | 25% to 50% of finished goods, if included | Enhanced monitoring and periodic exams required |
| Eligible Receivables Criteria | Invoice age 0 to 90 days, non-disputed, non-intercompany, enforceable terms | Foreign AR eligible with mitigants such as credit insurance or limits |
| Ineligible Receivables | Past due beyond aging cap, cross-aged, contra, intercompany, disputed, setoff risk | Detailed in the facility agreement schedule |
| Obligor Concentration Caps | 20% to 30% per obligor; excess subject to haircut | Caps adjusted for obligor quality and sector risk |
| Pricing | APR = U.S. Prime + 1.00% to 3.00% per annum | Interest on utilized balances only; actual over 365 day count; margin set in underwriting |
| Interest Payments | Monthly in arrears on used amounts | No PIK interest; cash pay only unless otherwise agreed for workouts |
| Unused Commitment Fee | 0 bps standard; 25 to 75 bps if capacity reservation is requested for large lines | Applies only if negotiated for larger commitments |
| Tenor and Renewal | 12-month committed revolving term, renewable by mutual consent | No prepayment penalty for voluntary paydown or early termination |
| Amortization | None; interest-only until maturity with revolver mechanics | Utilization reduces as collections sweep to the lockbox |
| Security Package | First-priority lien on accounts receivable and proceeds; optional lien on inventory and general intangibles if included | Perfection by filings and control agreements; intercreditor if required |
| Collections / Lockbox | Payments to controlled account or lockbox in lender’s name | Collections reduce outstanding and restore availability automatically |
| Reserves | General reserve 0% to 5%; tax, dispute, or documentation reserves as needed | Removed once conditions are remedied and performance stabilizes |
| Reporting and Exams | Borrowing base certificate monthly; AR and AP aging monthly; field or desktop exams semiannual to annual | Weekly reporting during initial ramp-up may be required |
| Affirmative Covenants | Maintain books and records, tax compliance, insurance, timely reporting, compliance certificate quarterly | Standard receivables facility undertakings |
| Negative Pledge and Liens | No competing liens on pledged collateral without lender consent | Permitted liens limited to ordinary course items and agreed baskets |
| Financial Covenants | Minimum liquidity USD 250,000 to USD 1,000,000; minimum tangible net worth 75% to 100% of current level; maximum total leverage 3.0x to 4.0x | Calibrated to sector, size, and variability of cash flows |
| Fees to Arranger (Financely) | Engagement fee USD 9,850 to USD 25,000; success fee 2.00% of committed facility at initial closing | Funds underwriting, diligence, data room, and auction administration |
| Third-Party Costs | Estimated USD 15,000 to USD 65,000 | Lender counsel, filings, insurance reviews, and any required exams; paid by borrower at cost |
| Drawdown Mechanics and Timing | Draw requests via lender portal; typical funding T+1 to T+2 after approval | Subject to availability and no default |
| Conditions Precedent | KYC, AML, sanctions clearance; executed documents; perfection; lien releases; insurance evidence; clean tax status | All to lender satisfaction before first draw |
| Events of Default | Non-payment, covenant breaches, misrepresentation, cross-default, insolvency, sanctions breach, change of control without consent | Standard ABL remedies including acceleration and sweep |
| Governing Law and Jurisdiction | State of New York law; New York courts | Alternative jurisdictions can be negotiated if required |
| Offer Validity | 30 calendar days from issuance, 17:00 New York time | Subject to market conditions and no material adverse change |
| Timeline to Close | 2 to 6 weeks from engagement to first draw | Depends on document readiness and lien releases |
APR is calculated as U.S. Prime plus the contractual margin. Typical margins for qualified borrowers fall within Prime + 1.00% to Prime + 3.00%. Interest is calculated on an actual over 365 basis and charged on drawn balances only.
Check Current Prime RateIf your receivables are clean and collections are predictable, we can run underwriting and a competitive auction to secure lender term sheets.
Request a ProposalThis indicative term sheet is for discussion only and is not a commitment to lend. Any facility is subject to lender credit approval, satisfactory completion of KYC, AML, and sanctions screening, execution of definitive documentation, and perfection of security interests. Economics and advance rates are set by the selected lender and may vary with the borrower’s credit profile and market conditions.
Submit your deal using our secure intake form, and receive a quote within 1-3 business days. Existing clients can connect with their relationship manager through our secure web portal.
All submissions are
promptly reviewed, and all communications are conducted through the intake form or the client portal for a seamless and secure process.
Thank you for considering working with us. A nominal fee of US$500 is required upon completion of each form. This fee covers the time and effort we invest in reviewing your submission and crafting a thorough proposal. We receive numerous inquiries and prioritize those that carry this fee, ensuring serious applicants receive prompt attention.
Tap into solutions like letters of credit, bank guarantees, and payment facilitation. We address the challenge of global transaction risk through structured strategies that foster cross-border growth. Complete the form to unlock streamlined funding aligned with your commercial objectives.
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Submit a RequestFinancely assists banks facing Basel III pressures by distributing trade finance deals and providing collateral for letters of credit. We reduce capital burdens while preserving client relationships and fostering service expansion. Submit your request to optimize your trade finance offerings.
Submit a RequestOnce we receive your submission, our team will review your information to determine feasibility. If eligible, you will receive a proposal or term sheet within 1–3 business days. Visit our FAQ and Procedure pages for more information.
Disclaimer: Financely provides financing based on due diligence and feasibility. Approval is not guaranteed, and past performance does not predict future outcomes. All terms are subject to review. Financely primarily assists with structuring and distribution. Qualified parties carry out the project if the client approves the proposal.
Financely advises growth-focused businesses on accessing capital by introducing their opportunities to professional investors. Financely is not a securities broker or dealer. Where appropriate, engagements are coordinated with regulated broker-dealers, investment banks, legal counsel, and other specialists.
Financely does not solicit, offer, or accept orders to buy or sell securities and makes no assurance regarding capital-raising outcomes.
Services are strictly business-to-business. Financely does not provide personal finance, consumer credit, or retail advisory services.
Advisory services are reserved for post-revenue companies that recognize the time and resources required for professional underwriting.
All mandates start with an RFQ. We review submissions, issue a brief Go/No-Go memo, and where bankable, release a Term Sheet that leads to funding. We arrange capital across Senior Secured, Unitranche, Second Lien/Mezzanine, Preferred Equity, and Gap Solutions. We do not process deals by email or chat.
Letters of Credit, Standby LCs, Confirmations, Receivables Finance, and Inventory Lines with control.
Funding arranged for trade flows with instruments sized to your cycle and aligned to delivery and settlement.
Move forward to secure working capital and keep goods moving. Submit the RFQ to start underwriting for funding.
Limited or non-recourse structures for energy and infrastructure with lender-ready materials.
Funding solutions aligned to project cash flows with credible covenants and conditions to reach notice to proceed.
Advance the file to termable status. Submit the RFQ so we can underwrite and secure funding.
Debt and Preferred solutions anchored on cash flow, Quality of Earnings, and clear closing mechanics.
Funding across senior, unitranche, and preferred to match stable cash flows and acquisition timelines.
Get financed on workable terms for closing. Submit the RFQ to start underwriting.
Acquisition, development, bridge, and refinance with lender-ready packs and third-party reports managed.
Funding calibrated to DSCR, leverage, and tenancy with terms designed to close.
Move to a financeable package. Submit the RFQ to initiate underwriting for funding.
KYC and Source of Funds required. Engagements are best-efforts and subject to underwriting. Preference for operating companies with meaningful revenue. See our FAQ and Procedure.
Financely Inc. (“Financely”) provides corporate-finance advice and is wholly owned by Aurora Bay Trust, a trust formed under Bahamian law, together with its authorized affiliates. Depending on deal structure, jurisdiction, and local rules, engagements may be carried out through Financely Group LLC, a non-deposit-taking, non-banking financial company; Ashford Capital Advisory LLC; or another related entity.
Financely and its affiliates are not registered as securities broker-dealers and do not execute securities transactions or hold client funds or securities. When a mandate involves the purchase or sale of securities and a registered intermediary is required, any orders are introduced to and executed by one or more independent U.S. broker-dealers registered with the SEC and FINRA. Those broker-dealers are solely responsible for trade execution, custody, and related regulatory obligations. Nothing in this material constitutes an offer, solicitation, or recommendation to buy or sell any security or to engage in any specific transaction. Before engaging Financely Group LLC, Ashford Capital Advisory LLC, or any affiliate, you are responsible for confirming that such engagement complies with your own legal, regulatory, tax, and other requirements. In the United States, certain advisory activities may be conducted in reliance on exemptions available under the Investment Advisers Act of 1940, including the “foreign private adviser” exemption where applicable. Our services and regulatory status may vary by jurisdiction and by transaction type.
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