Asset-Based Financing


Business Financing
Commercial Lending

Asset-Based Financing:
Everything You Need to know

Procuring a business loan can be challenging, especially when lenders are conservative about advancing credit to small business owners. However, with ABG International Inc’s asset-based financing, you can get an alternative source of funding.

What is An Asset-Based Loan?

An asset-based loan is a credit facility acquired when you put up business collateral as a security. The commonly used assets to secure this product include account receivables, inventories, equipment, and many more. Asset-based loans can be useful to many business people in different ways. For instance, manufacturers and service providers who have inadequate cash flows may use an asset based loan to boost their cash reserves. Such businesses may use inventories or accounts receivable as collateral to get credit from financial institutions.

Benefits of Asset-Based Financing

Benefits of Asset-Based Financing

Immediate cash infusion With an asset-based loan, you can get immediate cash to buy materials, inventory, and hire extra staff.

Turnaround time Unlike traditional loans, the turnaround time for the asset-based loan is within 48 hours. The application process is much faster than that of a conventional loan.

Easy to secure Securing an asset-based loan is quicker than regular business loans. Lenders are more comfortable to advance credit against an asset than a personal guarantee.

Fewer covenants Asset-based loans have fewer conditions than a mortgage or regular business loans.

Stepping stone to other products An asset-based loan will allow you to improve your financial score and credit history; hence qualifying more loan products.

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Final Thoughts

Asset based-financing is an ideal financing option, especially during a business’ growth periods. Unlike regular business loans, the credit is granted based on your business assets, such as account receivables and inventories.

However, an asset-based loan may cost more than a conventional bank loan. Note interest rates for the asset-based loan vary, and it vital to research a lender with the lowest price before applying for the loan. Whether you are looking for an asset-based loan or want to enquire about it, contact ABG International Inc for assistance.