"One of the greatest challenges for a successful company is managing the cost of higher asset levels related to rising sales."

Who is doing Asset-based lending?
52% of U.S. lending is now asset-based.

Why would you consider Asset-based Lending?
If your company is growing rapidly or highly leveraged, Asset-based Lending provides more capital
than traditional facilities based on your balance sheet or cash flow.

You must have:
Good, collectable receivables, and saleable inventory

Summary of Asset-based Lending

Asset-based lenders fund businesses with annual sales less than $250,000 to more than $1 billion. Credit depends on the type of business and the content and quality of the collateral. Frequently, the credit granted is more than the net worth of the business.

The increased cash availability provided by asset-based lenders often makes the difference between profitable growth and failure for the undercapitalized business.

The flexibility and cash availability provided by asset-based financing have enabled countless companies to grow and take advantage of market opportunities.

The cost of asset-based loans is influenced by the credit risk and collateral associated with the transaction. When evaluating an asset-based loan, borrowers should assess the cost of financing in the context of the benefits to be received. Compared with other financing alternatives, asset-based lending is very cost effective and efficient.

Asset-based lenders frequently look beyond financial statements to determine how much money they are prepared to advance at and after closing. Therefore, borrowers can take advantage of profit opportunities in the market by being able to plan ahead based upon their cash availability.

Asset-based lenders are proactive rather than reactive and can often restructure debt during tough times to help avoid costly and disruptive refinancing.

Over the long haul, the benefits will tend to offset the premiums associated with borrowing from the asset-based financial services industry.