Asset-Based Lending: Unlock the Value of Your Business Assets

Asset-based lending allows businesses to leverage their existing assets for funding. Let's explore how it works and compare it with other funding options.

How Asset-Based Lending Works

Key features of asset-based lending:

• Eligible Assets:
  • Accounts receivable
  • Inventory
  • Equipment
  • Real estate
• Key Benefits:
  • Higher funding amounts
  • Competitive rates
  • Flexible terms

Qualification Requirements

Understanding what's needed:

• Asset Requirements:
  • Asset valuation
  • Clear title
  • Quality assessment
• Documentation:
  • Asset documentation
  • Financial statements
  • Business history

While asset-based lending offers significant advantages, it's important to consider all funding options based on your timeline and needs.

Funding Speed Comparison

Understanding how quickly you can access funds:

• Asset-Based Lending:
  • Initial setup: 2-4 weeks
  • Ongoing draws: 2-3 days
  • Asset evaluation required
• Alternative Options:
  • Merchant Cash Advances: 1-3 days
  • Business Lines of Credit: 2-5 days
  • Traditional Loans: 30+ days

Choosing the Right Solution

Consider these factors when deciding:

• Immediate Needs:
  • MCAs for fastest funding
  • Lines of credit for flexibility
  • Asset-based lending for larger amounts
• Asset Considerations:
  • Asset quality
  • Valuation impact
  • Ongoing requirements

Many businesses benefit from combining quick funding options like MCAs for immediate needs while pursuing asset-based lending for larger, long-term funding needs.