Asset-based lending is a great option for businesses looking to finance their operations and grow. It provides access to capital that can be used for working capital, purchasing inventory, funding acquisitions, or refinancing debt. Asset-based lending also gives business owners greater flexibility in securing financing without having to worry about personal guarantees or restrictive covenants.
An Overview of Asset-Based Lending
Asset-based lending is a form of secured financing that considers the value and quality of an applicant’s assets. Assets such as accounts receivable, inventory equipment, and real estate are used to secure loans or lines of credit. Lenders will assess the value of these assets to determine how much they can offer in a loan or line of credit. To be eligible for asset-based lending, businesses must typically have been in operation for at least two years and have an established track record of generating revenue.
Greater Flexibility
Asset-based lending is attractive to business owners because it doesn’t require personal guarantees or restrictive covenants. This means that the lender will not require additional collateral beyond what is being used to secure the loan. Additionally, asset-based loans can be obtained much quicker than traditional financing, which makes them an ideal option for businesses looking to quickly access capital.
Low Interest Rates
Asset-based lending is also a great option compared to other forms of financing because it offers low interest rates and flexible repayment terms. Since the loan is secured by assets, lenders are willing to offer more competitive rates than those offered with unsecured financing. This means that businesses can access additional capital without paying exorbitant interest rates or having to commit to a long-term repayment plan.
For businesses in need of working capital, asset-based lending can be a great option for financing their operations. It offers access to capital without the need for personal guarantees or restrictive covenants, and it can be obtained much faster than traditional financing. With competitive interest rates and flexible repayment terms, asset-based lending is an attractive option for businesses looking to finance their growth. Contact Synergy Commercial Funding today to explore asset-based lending options for your business.
Are you looking for financing options for your business? If so, Synergy Commercial Funding is ready to help. We offer a wide range of commercial finance services to help businesses of all sizes achieve their objectives, whether it’s purchasing new equipment or purchasing a new commercial property.
Interested in creating a second line of income just by talking with your existing network? Want to help the economy grow by helping businesses around you grow? Think about becoming a Synergy Commercial Funding Partner. Visit our "Referral & Broker Program" to learn more.
