Asset based lending is a type of business financing that utilizes collateral such as inventory, equipment, accounts receivable, or real estate to secure a loan or line of credit.
This financing option is best suited to companies with already existing assets but may need additional funds to expand or in times of financial need.
With Asset based lending, a lender will focus primarily on the value of your business’s assets, which are used as collateral to secure a loan.
The positives of asset based funding include easier qualification, the ability to leverage current assets, greater flexibility, and lower costs than similar financing options.
However, not all assets qualify as collateral, higher costs compared to traditional loans, and the risk of losing valuable assets if payments are not made are some of the downsides. It is crucial to consider the risks and benefits before deciding if asset-based lending is the right option for a business.
Asset based lending can take many forms and is often tailored to the specific needs of the borrower. Here are some common examples of asset based funding:
Overall, asset based lending can provide businesses with access to capital using their assets as collateral. It can be a useful financing option for companies that have valuable assets but may not qualify for traditional loans.
GlobixFunding can provide Asset Based Funding for any viable company globally up to 80% of Accounts Receivable (Aged under 90 days), 50% of Inventory, 70% – 80% of Equipment, Real Estate Equity Funding, for Corporate Acquisitions, Recapitalizations, and Growth Financing.
Contact us today, we are ready to finance your next big project.
