2016 Asset Based Lending

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2016 Asset Based Lending

2016 Asset Based Lending: What Is It?

If you have heard the term “Asset Based Lending” and aren’t quite sure exactly what that means, then you have come to the right place.  In this article we will go over 2016 Asset Based Lending which is a type of commercial lending program where commercial borrowers can secure a commercial loan based on the assets of the business.  There are many different types of assets that can be used and for 2016 Asset Based Lending we can use the following items:

–          Inventory on-hand that is owned outright without a lien or debt attached

–          Accounts Receivable which is money owed to the business for goods or services rendered and scheduled to be paid back accordingly

–          Equipment that the business owns outright that does not have a debt or lien attached to it

–          Real Estate, Land, or Buildings that the business owns and operates out of

In order for a business to take advantage of the 2016 Asset Based Lending they must be a business that is a start-up, has not been in business for a long time, and is more than likely not profitable just yet.  These loans are designed for businesses who are in need for fast capital that will utilize this capital to expand their business without getting funding that looks at their existing balance sheet or previous tax returns.  Under normal circumstances when you see a business that is expanding rapidly and is in an infancy stage, they more than likely have cash-flow problems and a quick injection of capital is what they need in order to sustain their growth.  If the business is determined to be in this situation then the 2016 Asset Based Lending is a perfect financing option for them.

2016 Asset Based Lending: Accounts Receivable Usage

If you are looking for 2016 Asset Based Lending, normally the business doesn’t have the hard assets to borrow against or it is just normally easier to borrow against existing Accounts Receivable.  The reason why Accounts Receivable are a popular option for 2016 Asset Based Lending is the fact that it can be used across all industries because the concept behind Accounts Receivable is the same and that it is an agreement by a customer of yours to pay within a certain period of time.  Once Accounts Receivable are verified as a solid asset to borrow against, you can normally obtain up to 80% of their value in order to get the cash you desire immediately.  For companies with cash flow problems, it is always better to receive money within 10 days than waiting 30-45 days for the money to slowly come in.  When you are ramping up growth, the need for cash is evident.  The one key with all this is to make sure that your growth is also producing its own quality Accounts Receivable.  If you are using these funds to eventually drive more Accounts Receivable, you could be setting yourself up for failure.

If you are looking for a quick injection of cash, then you need to inquire right away and get your business the cash it needs today!  You can inquire directly to me at contact@loanconsultants.org.

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