Customer Testimonials
I am so happy...I am comfortable making payroll
Pete - Sparrows Point, MD
Business Cash Flow
Asset Based Lending
Asset based lending is a form of financing that is much like a line a credit from your bank with a few important differences. The main one is that the amount of money that a company is able to borrow is primarily based on the value of the assets under consideration. An asset is typically equipment, inventory, real estate, machinery or receivables.
Typical assets that are easily converted into cash, such as receivables, have a higher advance rate than less liquid assets such as inventory or equipment. In most asset based finance situations the lender has control of the collections and the relationship can be either disclosed or non-disclosed. There are usually loan covenants with this type of financing.
Asset based lending is a smart solution for companies looking to release the cash tied up in their business. Companies use asset based lending to:
- Purchase new equipment
- Finance growth
- Purchase materials
- Fund acquisitions
- Fund turnaround situations
Often signing up for asset based lending is faster and more flexible than a traditional bank loan. A company with good assets may receive financing in as little as 30 days.
Another benefit of asset based lending is that it's often a solution for companies that might not be eligible for a traditional loan. Start-ups and companies with seasonal work or poor credit can often use asset based lending to finance their business.
Contact Cash Flow Direct today if you would like to release the cash tied up in your business.
Other Types of Asset Based Lending
Updated by Gabriel Lopez
-
Submit Your Application
Getting started with Cash Flow Direct is as easy as submitting a short application and a few business documents.
-
Get Approved
Cash Flow Direct works with the best lenders in the industry. With high funding approval rates, you are as good as Approved.
-
Get Funded
After a Short Approval Process, we can typically get you funded by the lender in as little as 1 day.
- Apply Today »