Asset Based Loans – A Good Alternative to SBA Loans

SBA 7a and 504 loans are 2 of the best loan options available to those in need of commercial financing at the moment, but the reality is that many small and mid sized businesses that have good cash flow cannot qualify at this time.

It could be that the banks in your area are having a tough time or their hands are tied by the FDIC…or maybe your business is on the rebound due to the recession and the last few years you do not look good on paper.

Asset Based Loans Could Be A Solution

As the name implies, an asset based loan is a loan against a business “asset” and the recent past performance of a business (something that is crucial for a traditional commercial loan) is mostly a “non-factor” since an asset based lender relies on the value of the asset used as collateral.

So if your balance sheet or credit does not look that great at the moment but you have predictable cash flow, “paid for” assets or good accounts receivable there might be an option for you.

Asset Based Loans Are Not Just for Hard Assets Like Equipment

Asset based lending is not just for things like expensive equipment.  It is includes:

· Purchase Order Financing – including “work in progress” PO financing

· Service Contract Monetization

· Financial Contract Monetization

· Accounts Receivable Financing or “Factoring”

· Credit Card Receipt Financing

· Sale Leaseback Financing