All About Asset Based Loans
Hi there,
As a small business financing company, we understand that not every business has the credit history or cash reserves available to secure loans from traditional sources. If you have had trouble getting your loan applications approved, consider looking into other types of business financing.
In particular, asset-based loans can be an excellent option for businesses looking to access capital quickly and easily. They provide a higher level of flexibility than traditional bank loans and can be used to finance a variety of projects and investments. Asset based loans, as the name suggests, involves using assets, such as inventory, accounts receivable, or equipment, as collateral to secure a loan. It's a flexible and efficient way to finance your operations and seize opportunities.
Asset-based loans are unique in comparison to other funding types because the asset is still owned by the company seeking funding. With invoice factoring, the lender takes ownership of the accounts receivable.
Curious about the process details? Our recently published guide overviews the asset-based loan process, the risks and benefits, plus some helpful tips on what to consider before signing an agreement. Check it out below:
I hope you find this guide informative and helpful. If you have any questions about business financing or how asset-based loans could work for your company, give us a call.
Best of luck,
Daniel Eke
Factor Funding Co.
