Like our Chairman and CEO did when they served our nation in the military, Parabilis takes core values very seriously. We are transparent by keeping our agreements and practices simple; we are flexible by giving our clients many financial options which are tailored to their needs; and we are financial partners because we provide short-term and long-term CFO-level strategic guidance.
Our clients come to us because of these values. But once values are aligned, the most important part of successful asset-based financing becomes the amount which Parabilis can lend at a given point in time.
Our standard advance rates can be as high as 30% for delivery orders, 65% for Work in Process (WIP), and 90% for billed A/R. Our team looks at the hard numbers – the company’s history, its secured and potential government contracts, its business plan, margins, cash flow needs – as well as the critical intangible factors – are the client’s senior executives ethical, engaged, and willing to make necessary changes to create long-term success?
The result of this analyses are agreed-upon advance rates – the percentage at which the three types of collateral can be loaned against. Advance rates are used as a buffer to protect Parabilis as well as to ensure the borrower is not spending 100% of tomorrow’s revenue today.
For Example:
Your $100,000 Delivery order = Up to $30,000 on day 1
Your $100,000 Work in Progress = Up to $65,000 within the month
Your $100,000 Billed Accounts Receivable = Up to $90,000 on day 1
Your Combined Collateral = $120,000 on Day 1 and growing to $185,000 by the end of your first month with Parabilis.
If we are all on the same page with values, hard numbers, and intangibles, our Credit Committee approves all lending decisions. With their approval – including Parabilis’ co-founder and Board Chairman Ed Bersoff – we’re off and running.
Contact us today to learn more.