Formula Based Lending

Our years of working with successful businesses help us create the most innovative and effective financing concepts in the industry. In each case, GE Commercial Distribution Finance (CDF) targets specific credit needs faced by our customers, then fine-tunes financing solutions to help them succeed.

Formula-based lending is an alternative financing solution for dealers who are currently using several different lending sources to help manage their businesses.

Formula-based lending provides another option for CDF customers, and offers a way to increase access to working capital. It uses a pool of assets as the borrowing base -- including book value of equipment inventory, accounts receivable, and parts inventory.

This simplified lending option allows dealers to consolidate all of their financing needs to one source -- CDF. The result is one credit facility, one interest rate, one set of terms -- and that translates into savings for most businesses.

In some cases, a dealer may wish to retain an existing banking relationship for working capital needs. In this case, CDF may provide a flexible "inventory only" limited borrowing base option to the dealer.

The formula-based lending concept is adaptable to a range of financing needs. Some features and benefits include:

Decreased asset-to-loan maintenance, resulting in lower administrative expenses.

Simplified billing reports - one note, instead of cumbersome individual billing statements for individual contracts.

Reduced reconciliation.

Overall flexibility.

Support from one of the world's largest financial services providers, with a history of commitment.

Call CDF today for more information on our existing programs and services, and how we can create a specialized program to maximize your business growth.