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 clients need.


Revolving Credit Facilities
Mercantil Commercebank’s Revolving Credit Facilities may empower your businesses to use leverage for working capital needs at reasonable costs and manage the businesses’ 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 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 the Accounts Receivables and Inventory.

An asset-based loan is typically structured as a revolving line of credit without a schedule repayment and on an interest-only basis.  The lender advances funds based on a percentage of the 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.