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?
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.