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Asset-Based Lending

Utilize receivables, inventory, purchase orders, and other collateral to secure the capital you need to grow.

What Do You Need to Qualify? Offers the Best Small Business Financing

No Time In Business Requirement

Even as a young, growing business, you can still find financing options with the right assets. Offers the Best Small Business Financing

Assets or Collateral

Asset-based lenders don’t typically focus on credit score—you can find options with challenged credit. Offers the Best Small Business Financing

$100,000 in Current Receivables

Most lenders will want to see at least $500,000 in current receivables or purchase orders. Offers the Best Small Business Financing

No Minimum Credit Score

Typically, you can access 50-95% of your collateral, whether you utilize receivables, purchase orders, or another option.

What Is Asset-Based Lending?

Asset-based lending is a type of business financing in which the lender secures the agreement with an asset or collateral. Asset-based lending can give the borrower either a loan or line of credit.

Collateral for asset-based lending doesn’t need to be real estate. Other more liquid assets, like receivables, inventory, purchase orders, and potentially equipment, can also act as collateral. You can leverage one or more of these assets to secure a loan or an ongoing credit facility/line of credit for your business.

Unlike other financing options, your business can qualify for asset-based lending with a low credit score or no history. Rather than meeting traditional requirements, you can qualify based on your receivables, inventory, or other assets.

Asset-based lines of credit and loans help you capitalize on the value of your liquid assets immediately. Instead of waiting for payments, you can get working capital to cover expenses like growth, expansion, additional inventory purchases, and more.

How Does Asset-Based Lending Work?

Asset-based lending works like most other business financing options—you get cash to drive your business growth and pay it back over time. Asset-based lending, however, involves putting up an asset (which will be explained below) as collateral. You can choose to put up real estate, but there are many other options that may be simpler, easier, and less risky. It’s not uncommon for new and older businesses to experience cash flow issues due to rapid growth or slow-paying customers. In these situations, asset-based lending helps you unlock instant cash to use immediately by leveraging assets like receivables, inventory, and more. Many businesses utilize asset-based lending for standard working capital needs or shortages, during seasonal slow periods, and to cover slow-paying receivables. When you put an asset up as collateral, you’re reducing the lender’s risk and giving them confidence because they’re given a security interest in the asset. As a result, this may reduce your interest rate. However, interest rates can vary based on a number of factors. While there are a number of types of collateral, lenders tend to prefer highly liquid assets like receivables to illiquid options like equipment. Nonetheless, you can still find great options by putting up your equipment as collateral.

10 Reasons Why BoomCity Funding Offers the Best Small Business Financing

Table Comparing Banks to

Unlock the Lowest Rates, Longest Terms, and Highest Amounts Offers the Best Small Business Financing Offers the Best Small Business Financing

Loan Amount

$10K – $5 Mil

Flexible Terms

6 Months - 10 Years

Time to Fund

1 - 3 Days

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