Asset Based Lending

In America, consumer credit is never hard to find. Each day, the average person is showered with ads suggesting that millions of dollars in total credit may be available to them - all they need do is sign the dotted line.

In many cases, this in fact is somewhat misleading, but one thing which is not misleading is that for business, credit is rarely offered. For small businesses in particular, credit can seem like a pot of gold at the end of the rainbow that seems to never come. Asset based lending is truly one of the few vehicles newer companies have, and it is gaining in popularity daily.

If you're looking up the possibilities of asset based lending for your company, congratulations - you are already likely better informed than your competitor is. The fact is, asset based lending is available to most businesses, and is particularly effective for one group of businesses. That group - companies which are new, have a spotty credit history or are otherwise unable to obtain regular bank financing.

In fact, many companies with superior credit ratings still use asset based lending - simply because it frees up cash which they might otherwise have had to pay interest on.

Factoring - A Unique Form Of Asset Based Lending

Everyone knows about one form of asset based lending - it's called a mortgage. And it's available for your business, if you own real estate, or equipment. In cases such as this, your credit is simply secured to these assets - so if you default, the asset is seized. Simple enough, and effective for many.

But what many entrepreneurs and savvy managers do not know about is the asset based lending form known as Factoring. With Factoring, your accounts receivable is actually seen as an asset, and becomes collateral for a short term loan.

Factoring essentially provides you with cash today based on the cash you will likely be collecting from a customer within 30-90 days. It's a simple process, also known as Purchase Order
Financing, which enables you to get the money you are due today - with which you can pay off suppliers, cover payroll or any other expense you may have. It's truly a superb way to create capital from your invoices.

Getting Started With Factoring
Using your invoices for asset based lending is quickly becoming a popular technique for entrepreneurs. It does not affect your credit rating, but instead relies on the credit rating of your customer, which is a critical difference. Factoring Associates can lend you up to 80% of the total purchase order immediately, which can help you with cash flow management and get your business growing. It's simple, and works for companies with invoicing needs anywhere from $10,000 to $5,000,000.

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