Asset Based Loans
An asset based loan is secured by assets owned by your company and is a specialized loan product used by many industries, especially by manufacturers, wholesalers and retailers, which provides fully collateralized credit facilities to borrowers with high financial leverage and marginal cash flows.
We help clients address such business challenges as:
The credit line is limited by a borrowing base which is comprised of advance rates applied to the liquidation value of accounts receivable, inventory, machinery and equipment, real estate and other assets. These assets serve as collateral for the loan.
This type of loan is an alternative when a business is not able to secure a loan from a bank. An asset-based business line of credit is usually designed to allow the company to bridge itself between the timing of cash flows of payments it receives and expenses it must pay out. An asset based line of credit will generally have a credit limit that fluctuates based on the actual accounts receivables, inventory, etc. and balances that the company has on an ongoing basis. This requires the lender to monitor and audit the company to evaluate the company’s assets, but also could allow the borrower larger lines of credits than it normally would be allowed to borrow.
Benefits of an Asset Based Loan:
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Leverages sales growth today
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Provides more capital than traditional facilities based on the assets on your balance sheet or cash flow
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Enhances the flexibility regular bank financing may not provide
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Accesses large amounts of cash that have already been invested in your business
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Maintain control of your business instead of giving up ownership which is the case with equity financing
If you are a government vendor and are interested in being pre-qualified for funding, please visit Government Vendor Program.
PROBLEM: You Are Interested In Getting Money Now!
SOLUTION: Let Us Help You Today!
How Can You Get Started Today?
Start by completing the Profile below. The attached form (not a binding obligation) is to assist us in obtaining preliminary information about your financing needs. All information given is retained in the strictest confidence and will only be used by your Business Finance professional to evaluate your company' specific needs. Upon receipt of your information, you will be contacted to answer any questions that you may have and to explain the services that may best suit your company. Or for a “complimentary consultation” and to learn more about our financing programs that can keep your business in complete financial control, call 888-601-5777 today or email us at info@gatewaytocapital.com. |