Asset-BasedLoans

Use your assets to secure the funds you need.

An asset-based loan gives you the cash flow needed to help your business grow. Note that asset-based lending and asset-based loans are the same service.

What is an Asset-Based Loan?

what is asset based loan

An asset-based loan is a form of business financing that is secured by the assets of a business. This provides specialized short-term financing in situations where traditional financing is either unattainable or undesirable.

How Does an Asset-Based Loan Work?

Asset-based lending uses assets instead of cash flow and credit to provide financing for a business that needs it. An asset-based loan is common for a business to secure additional capital and operate efficiently when cash flow is low. It is required that the loan be backed or collateralized with tangible assets such as inventories, real estate, accounts receivable, machinery and equipment, and the like.

The amount of the loan given will be largely dependent on the value of the underlying asset. Other metrics such as cash flow, financial conditions, and history may be considered if it enhances the options. The ideal loan size can be anywhere between $50,000 and $15 Million or higher, depending on your situation.

asset based loan work

Our Clients Use Asset-Based Loans to:

userlending1 Restructure financially
userlending2 Acquire assets (businesses based in U.S. and Canada)
userlending3 Assist in DIP proceedings (90 days minimum term)
userlending4 Grow rapidly (fast turnaround)
userlending5 Secure a tax lien (secured loan buyouts)

Asset-Based Loan Process

step 1

Apply to a company like Factor Funding to see if you qualify for an asset-based loan

step 2

Your request will be reviewed and a representative will contact you to discuss your status and funding options

step 3

Once approved, you will agree to the final sum amount and the final funding documents

step 4

Factor Funding will then advance the agreed-upon sum to you!

step 5

Now you can use the funds to help finance your business where needed

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Once you have qualified for our service, your next asset-based loan will be available even faster.

Requirements For

Asset-Based Lending

Asset-based lending is available to small and mid-sized companies that have tangible assets which can be used as collateral.

Required Documentation
asset based loan factoring

To complete the asset-based loan application, we may ask for some or all of the following:

  • Articles of Incorporation or Assumed Name certificates
  • Copy of applicants driver’s license and social security card
  • Accounts receivable aging and invoices
  • Copy of business/liability insurance
  • Customer list
  • Copy of contracts or purchase orders
  • Copy of operating authority (MC#_______) (Trucking)
  • Worker’s compensation insurance (temporary staffing firms)
  • List of all jobs currently working on (construction)
  • Federal Tax Identification #/W-9

Asset-Based Lending

Who can use an asset-based loan? Small to mid-sized companies that are:

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sec 8 abls img Able to finance assets

…not having any accounting, legal, or tax issues which would encumber the collateral.

Benefits of Asset-Based Lending

— Especially with Factor Funding
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Reduce Your Credit Risk and Grow Your Business

Don’t try to float debt on credit cards to consider other creative financing solutions that could risk your credit. Contact Factor Funding today to learn how to reduce your credit risk and grow your business through our asset-based loan program.

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Years of Experience

Factor Funding has been around for 20 years. We provide asset-based lending and other short-term loans and business services throughout the United States.

Get In Touch With Factor Funding

To Get Started with Asset-Based Lending

What better way to get the peace of mind you need surrounding your business funding than from an expert with years of experience helping countless others in exactly the same way?

Reach out for assistance to ensure that your feeling of being in a rut over finances doesn’t last long. We get companies the quick cash they need to get things done in the here and now.

Waiting around won’t get you to the next level and help you reach the goals you know your business is destined to achieve. We look forward to chatting about your company’s needs and how we might be able to partner with you. Here’s to your success!