By borrowing against these current assets, management is able to generate cash sooner than if it had to wait for inventory to become accounts receivable, and for accounts receivable to become cash. Wholesalers, retailers, distributors, manufacturers and service companies can all benefit from the use of our revolving credit facility.

Our revolving credit facilities are custom structured to meet the needs of each business. In order to make the loan "work", Quantum's financial engineers will work outside the box to find the best way to give the client the maximum availability. Often times this will mean looking toward additional collateral in the form of the company's real estate assets, or perhaps secured personal guarantees from the principal owners and managers of the business.

Quantum's underwriters will determine an advance rate and an eligibility formula. The advance rate is the maximum percentage that Quantum can make available against the eligible assets, in company's borrowing base. Typical advance rates may vary significantly depending on the type of business, the stability of the business, and the additional collateral available.

To expedite the underwriting process, the following data will typically be required;

Most Recent Fiscal Year End, and Most Recent Interim Financial Statements.

Personal Financial Statement and credit report on each Principal and Officer.

Accounts Receivable Aging and Customer List.

Accounts Payable Aging

Inventory List

Equipment List

The collateral supporting a revolving credit facility will be monitored. This is beneficial to both the borrower and lender. In this way, we can make available the largest possible loan supportable by the collateral. The monitoring will typically consist of field examination audits, and accounts receivable verifications.

Normally it will take approximately three to four weeks to close a revolving credit facility. This will vary of course depending on the complexity, type of facility, and amount of negotiation. To help reduce time and expense of the closing it is important to be open, and to provide us with complete and accurate data from the beginning.

As in virtually all lending relationships, the borrower is responsible for the lender's out of pocket costs, which could include, legal fees, audit fees, and appraisal fees if necessary.