Asset-Based Lending

Asset-based lending is a loan against accounts receivable and inventories rather than an outright purchase of receivables as in AR funding.  The emphasis of creditworthiness shifts back to the client instead of the customer, making asset-based lending considerably more difficult to obtain than accounts receivable funding.  Additionally, most asset- based lenders will require a minimum size to establish a line of credit.

You can use almost any unencumbered asset as loan collateral:

·         Inventory
·         Equipment
·         Real estate
·         Accounts receivable

Asset-based loans can further your business success in a variety of important ways:

·         Purchase materials and supplies
·         Meet seasonal demands, payroll and expenses
·         Keep payables current
·         Turnaround help
·         Finance growth