Asset-based financing is a method for fast growing, money-strapped companies to assemble their short-term cash needs. Overall, companies can pledge their tangible assets to generate cash flow through an asset-based loan.
The fundamentals of an asset based line of credit for your business is using all the assets on your company’s balance sheet; receivables, machinery, stock, inventory and property to generate working capital, in other words, your tangible assets. You, the business owner, still own your assets, but if you default on your payments, the lending institution can take possession of them. An asset based loan requires good personal credit scores and good business credit, it is not categorized as alternative lending.
“Asset-based finance provides working capital solutions for businesses to optimize their cash flow and realize their growth ambitions,” says Martin Cooper, of Lloyds TSB Commercial Finance. “A lot of very well run companies, from small firms to multinationals, use it in a very strategic manner. It puts them more firmly in control because it’s directly linked to what they’re trying to achieve.” World Watch Report
One of the advantages of applying for an asset-based loan is that small businesses owners can utilize their line of credit at anytime and obtain a good interest rate. You can apply for an asset based loan with your local bank or another commercial bank.
For more information on how we can best serve your Fort Myers and Cape Coral asset based lending , please fill out the online contact form about your concerns or give us a call at 855.477.9007. Read what people have to say about First Pro Capital on our Testimonials page.
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