Asset Based Financing
Asset-based lending is a type of business financing in which the lender secures the agreement with an asset or collateral. Asset-based financing can give the borrower either a loan or line of credit.
Collateral for asset-based lending doesn’t need to be real estate. Other more liquid assets, like receivables, inventory, purchase orders, and potentially equipment, can also act as collateral. You can leverage one or more of these assets to secure a loan or an ongoing credit facility/line of credit for your business.
Unlike other financing options, your business can qualify for asset-based financing with a low credit score or no history. Rather than meeting traditional requirements, you can qualify based on your receivables, inventory, or other assets.
Asset-based lines of credit and loans help you capitalize on the value of your liquid assets immediately. Instead of waiting for payments, you can get working capital to cover expenses like growth, expansion, additional inventory purchases, and more.
