|
Being a small business comes with downsides, particularly when you need to have quick cash to pay employees, purchase inventory, or capitalize on a growth opportunity. That is where an asset-based lending loan is necessary.
With this funding option, you can use the assets you already have on hand, such as inventory, accounts receivable, equipment, or real estate, to serve as collateral for immediate working capital. Unlike regular loans that depend virtually entirely on your personal credit rating, an asset-based loan depends on what you already have.
Why Use an Asset-Based Lending Loan?
Rapid approvals – Receive money in days, not weeks.
Lower interest rates – Collateral-backed loans are generally more affordable than unsecured loans.
Flexible funding – Works like a revolving line of credit, so you can borrow and repay as your needs require.
Best suited for asset-rich businesses – Best for manufacturers, wholesalers, and companies with high receivables.
Your credit limit is determined by lenders based on the worth of your assets. For instance, you might get 70–85% against receivables or around 50% against inventory. Your available credit replenishes as you repay, making it a smart choice for regular cash flow needs.
Is It Right for You?
If your business owns tangible assets and you need low-cost, repeat borrowing of money, then such financing can prove revolutionary. Keep in mind that defaulting will put your assets at risk, and you'll be required to meet reporting requirements, such as audits and financial reports.
More than any other, most American businesses rely on asset-based loans to help meet cyclical shortfalls, fund accelerating growth, or just keep their daily lives running. Regardless of your business, whether manufacturing, shipping, or wholesale trade, you can leverage this type of loan to drive yourself ahead without draining your capital.
Don't stall your progress with cash flow. Leverage your assets and turn them into operating capital today.
Apply now. Secure funding. Grow stronger today.
|