Asset Based Financing

As an individual, you have probably been offered credit in many forms, from car loans to credit cards. New students entering university are often bombarded with credit card offers as well. Credit seems really easy to get, and even easier to use, so for new entrepreneurs looking for the same credit offers to fund their businesses, it might come as a surprise to discover that it's not always available.

Banks often shy away from funding new business ventures because of the risk involved. Unless you are a well-established company, you will probably have a very difficult time getting a loan or a line of credit from a bank without leaving collateral. In most cases, collateral is the only thing that will get a traditional bank loan or line of credit. However, for entrepreneurs who are just starting out, collateral isn't always an option. You may not have any, or you may not want to use it.

So, how do you fund your new business if you can't find a bank to give you a loan? You certainly don't have to give up on your dream of running your business. With asset based financing, you will be eligible for unique and non-traditional funding opportunities that will provide you with the funding needed to start, develop and grow your business.

What is asset based financing?

Asset based financing is what it sounds like-financing based around the possession of assets. Another term for asset based financing is factoring. With factoring, you don't have to put down any collateral and you also don't have to worry about incurring debt from a loan in order to get money for your business. Sound too good to be true? That's what many people think about factoring because they don't understand how the process works. It's a very old form of financing that has helped small business owners and large companies get enough funding and cash flow to start, build and grow their businesses.

Factoring, also known as asset based financing, works through the sale of your company's account receivables. Depending on the size of those receivables, the quality of them and the risk associated with your clientele, you may be able to get immediate cash in return for the sale of those receivables. When you hire a factoring company, you sell them your receivables for a small fee. Then, depending on your company's specifics, you may be able to get cash for 80% or 90% of the total receivables. And this can happen within a few days of selling your receivables, so it is certainly more appealing than waiting the 30, 60 or even 90 days your customers have to pay their invoices.

How asset based financing can help your company
Factoring is a popular method businesses use to secure financing because it provides them with instant financing and an accessible cash flow. For new companies just starting out or for those that want to grow, access to cash is vitally important as it can mean the difference between creating a successful company or closing down your business altogether. To find out how your company can benefit from asset based financing, consult one of our representatives for more information. You can have cash for your company within days!

Getting started is simpler than you think. Contact us here today to talk about asset based lending, or apply now to get the process started. We may be able to provide you with cash within 48 hours. Try getting that kind of service at your bank!

FAQ | Glossary | Process | Required Documents | Services
Accounts Receivables Outsourcing | Small Business Funding
Accounts Receivable Management | Business Receivable Factoring
Factoring Financial Services | Accounts Receivable Factoring Company
Factoring Accounts Receivables | Accounts Receivables Factoring