Asset Based Lending & Financing
Our asset-based loans can assist business owners in obtaining inventory or equipment, as well as financing real estate and accounts payable. While applicants will be required to provide proof of assets and financial statements for collateral, they will not need their personal credit score, which makes these loans easier to attain.
Inventory Financing
An Inventory Asset Loan is typically secured by the value of inventory being purchased. Applicants must show that the inventory sales will bring in sufficient income to repay the loan. Inventory financing loans can fund up to 90% of the cost of the inventory being purchased as long as proper requirements are met. These loans serve business owners who have been denied a conventional loan due to credit history or some other factor. As such business owners who require funding for the purchase of inventory will typically find an Asset Based Inventory Loan the easiest option in terms of repayment and collateral requirements. Inventory financing loans cannot be used for the purchase of property for its potential value at a future sale, or for the purchase of real estate.
Commercial Real Estate
An asset based commercial real estate loan is based on the value of a business’s owned real estate. The businesses property will be used as collateral to secure the note. This provides the lender with additional security, often providing a financing route for businesses that have a less than perfect credit history. Funding can be provided for up to 90% of the value of the property. Unlike traditional real estate loans, asset based real estate loans allow funds to be used for any variety of business needs. Consequently, this means that the financing is not limited to the purchase of real estate, and can be used to smooth over cash flow issues or to fund expansion outside of real estate.
Accounts Receivables
An accounts receivables loan is based on the amount of money owed to the business form invoices or billing. These funds can be used for the daily operations, including the purchase of inventory, employee wages, and utility payments. Small businesses must have 2 prior years tax returns and proof of ability to repay the loan, which makes them easily qualified for up to 100% financing. The loans are repaid as funds become available and typically carry low APR. In addition, A/R loans are typically based on the credit worthiness of a company’s invoiced customers, often making it a great fit for businesses with a strong client base but weaker company credit history.
Hard Money Loans
Our asset-based hard money loans are typically secured by real property, with a lifetime of only a few months to only a few years in length. A hard money loan provides funding to assist in temporary financial situations or when your business is waiting for long-term financing to be approved. Our Hard Money loans can be acquired even if the property owner is in a distressed financial situation. Funding can be up to 75% of the value of the collateral property and can be used for a variety of business operations including the purchase of inventory or stock, employee wages, and insurances, and construction or landscaping projects. Uniquely, hard money loans require payment only on the interest on the loan, with the final balance due at the end of the term.
Equipment Loans
Asset-based equipment loans are calculated using the value of the business-owned equipment. The equipment must have long-term value and must be used solely for business purposes in order to qualify. Funding is provided based on the value of equipment, and that same equipment will be used as collateral for the loan. Financing of up to 90% is available, with APRs between 5% and 15%, making this type of loan readily available to small businesses with less than desirable credit histories. Asset-based equipment loans can be used for the purchase of upgrades, construction and for daily business operations.
Acquisition Financing
The acquisition of real estate is an important part of business growth. Most businesses are eligible for acquisition financing and funds can be used for purchasing real estate for storage, expansion, or owner occupation, just so long as it will be used by the business in some means. The loans are typically long-term, ranging from 10 to 20 years. Usually, the business will be responsible for a 10% down payment and typically carry low-interest rates and easy terms. This makes acquisition financing easily attainable for many small businesses and helps relieve some of the stress that comes with real estate purchases. New businesses can use funds to purchase their first building, while seasoned businesses may be using funds to expand or franchise their business.
Understand Your Options
Our network provides the capital your business needs. We work to find the best solutions and connect you with the lenders who are right for you.
For more info, or to schedule an appointment, just use the form to let us know what you are looking for.