Asset Financing

Asset financing is typically structured as a line of credit secured by a specific asset or across a combination of existing assets. Usually, this includes accounts receivables, finished goods inventory, real estate, and/or equipment. With asset financing, a company uses its assets as collateral to obtain capital. The financing institution does not own the companies’ assets, but the assets can be seized if the business does not make its required payments on the loan. Besides working capital, asset financing can be used for many other purposes.

Asset based loans are perfect for:

  • Company acquisitions and business mergers
  • Management buy outs
  • Financing expansion
  • Turnaround finance
  • Refinancing existing business loans

Why consider asset based financing for capital?

  • Able to leverage sales growth today
  • The lack of flexibility through regular bank financing is no longer an issue
  • Revolving credit lines can be secured by your raw materials and finished goods inventory
  • Access large amounts of cash that have already been invested in the infrastructure

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