Asset Based Loan

Asset based lending is a loan which is secured by a company’s assets. Asset based loans are utilized by companies that need working capital to operate and grow. Often companies looking for an asset based funding option need it to manage their cash flow. Whether the problem stems from growing too fast or just covering costs, an asset based loan enables the company to position themselves in just the right way.

Qualifying for an asset based loan doesn’t focus on your financial history or credit score. Rather, lenders look into the value of your business’ assets, which are in turn used as collateral in case you default on your loan. Assets considered include accounts receivable, equipment, inventory, or real estate. Asset-backed loans can be structured as either term loans or lines of credit, and can borrow up to 85% of the value of the assets put up as collateral.

Advantages of Asset Based Loans

• Improved liquidity
  
• Easier to Qualify
  
• Lower costs than comparable solutions
  
• Can be obtained quickly
  
• Fast approval and funding