What is Asset-based lending?

An asset-based loan furnishes  your business with immediate cash funding as well as a revolving line of credit based on the value of your commercial assets like accounts receivable, purchase orders, inventory and machinery and equipment. For immediate working capital needs, factoring accounts receivable and purchase orders are solid funding options. Capital Solutions works with you to determine your business’ best course of action to maximize return on your company’s assets.

How does a revolving line of credit work?

Your line of credit is based on a percentage of your business’ commercial assets that are brought into play. You draw on your line of credit when you need it, only paying interest on the funds you’ve used.

When should you consider asset-based lending?

Asset-based lending provides a constant, affordable source of working capital for a variety of business situations:

  • Support growth
  • Acquisitions
  • Turnarounds
  • Restructuring

You can use asset-based lending in situations where traditional financing turns its back:

  • Quick access to funding
  • Customization and flexibility
  • High growth
  • Length of time in business

How do you know if asset-based lending is right for you?

  • If you need working capital to support growth, acquisitions, turnarounds and restructurings, consider asset-based lending.
  • You need funding quicker with a more flexible structure than a traditional lending institution can provide.

How do  you choose an asset-based lending partner?

Look for a lender with industry knowledge and credit expertise. Nothing beats a lender’s track record in structuring deals, both straightforward and complex, for entrepreneurial companies requiring the experience of a proven partner. While every deal does not have to be complicated, and most aren’t, it’s good to have financial partner who can step-up and configure a complex deal if you need it.

Capital Solutions creates flexible asset-based lending and working capital solutions to help businesses in a range of industries succeed. Our team has deep-rooted, hands-on experience working with businesses to leverage their assets for growth and success. Click here to contact Capital Solutions about your financing needs.