Asset Based Lending – What is it and What are its Advantages?

The first thing that every business counts on is cash flow. Assets can be practically of no use if they remain frozen in the time of dire need. And frozen assets are those that cannot help you with cash generation in order to sustain the supply chain. Now, you might be wondering why there is a sense of panic since banks are always available to help you with assets based loans. But, the truth of the fact is that:

  1. Banks are usually unwilling to Loan cash to small and medium sized businesses. 
  2. Banks are usually unwilling to pay small loan amounts. 
  3. Banks can take anywhere between 3-4 weeks to 3-4 months and even more to sanction a loan. 

Whilst an already thriving business doesn’t have to go through any of the above listed 3 hassles, the situation is highly chaotic for budding businesses. And hence the need for asset based loans by investment firms like Accord Financial

The Accord Financial asset based lending solution is designed to help you with active cash flow based upon the monetary evaluation of your company. This evaluation is done against the following few assets:

  • Accounts receivable. 
  • Equipment you already have. 
  • Current size of your inventory.
  • Your revenue model. 

These are but a few basic examples of frozen/locked up assets. Accord Financial offers loans – as little as 1 million dollar to as high as 20 million dollars – against such locked up assets. 

That being said, let’s now talk about the advantages of these types of asset based loans aside from the usual that they are sanctioned quickly. 

Have a look! 

  1. Asset based loans can be used for different purposes like refinancing, rapid growth, restructuring, merger or buyout, turnaround, and even acquisition. 
  2. Asset based loans can be sanctioned for long term as well as short term, entirely depending upon what your needs are. The rate of interest is applied accordingly. 

All in all, you can get such loans approved at Accord Financial whenever you need it and as much as you need. 

Benefits forbye, some of the features that only a limited few investment firms offer are listed below for your reference. Have a quick peek. 

  • They have a transparent financing policy. 
  • No hidden fee is thrown at you suddenly. 
  • They do offer options to reapply for a second loan and other options like closing a loan before time. 

So, if you’re in soup and want urgent funds for your business, do not forget to check out the many options offered by trustworthy firms like Accord Financial.

Rozella Kessler
the authorRozella Kessler