Asset-based lending refers to any type of financing that is secured by tangible assets, including inventory, machinery or accounts receivables.
Asset-based lending is easier to get approved for, as tangible collateral reduces risk for the lender.
What types of assets can be considered?
Accounts Receivable
Inventory
Equipment
Real Estate
The loan amount your business qualifies for is proportionate to your outstanding receivables — the more you invoice, the higher you’ll be able to borrow.
Inventory may serve as collateral for asset-based lending — the inventory is appraised to determine its value, and that value can be used to secure your loan.
Manufacturing equipment, vehicles, commercial kitchen appliances, computer systems— machinery or equipment your business owns can be used as collateral.
Retail or manufacturing space, land owned or other real estate property can be considered a eligible asset
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