Asset Based Lending Options From A2B Finance
Asset based lending is a range of financial products and services offered by lenders that enable the borrower to take advantage of any assets they hold. These assets can range from equipment and machinery to real estate, and even the invoices that are produced on a monthly basis. Although the actual amount you will be able to borrow will be determined by the value of the assets held, and the liquidity of those assets, it means that the key to your borrowing requirements could be found within your books.
There are, of course, some potential pitfalls to this type of borrowing. The biggest downfall is that if you get into financial trouble and default on what is, at its core, a secured loan, you could potentially lose the assets that were acting as collateral. The amount you can borrow is also limited by the perceived value of your assets.
Despite these pitfalls, asset based lending products could unlock the finance that you need in order to be able to expand, buy new machinery, or simply meet your day-to-day expenses for a period of time. At A2B we specialise in helping businesses find viable and beneficial financial products. Call and speak to one of our team today. They will be able to discuss your requirements and current circumstances, and they can start the ball rolling to help ensure that you get the finance you need.
The most common form of asset based lending is the mortgage. With a mortgage, the money you borrow is secured against the property. This means that the lender has the security of the property so that you can enjoy low interest rates and extended terms. Secured loans are another form of asset based lending product, and they also tend to attract lower interest rates than you see with unsecured loans.
Machinery And Equipment
Your property isn’t the only asset that your business owns. Machinery and plant equipment can cost a lot of money, and once purchased, you won’t realise the funds from the machinery until you sell it again. You can use asset based lending, whereby the lender will judge the value of these assets and lend you a portion of the value. In most cases, you will be able to borrow up to 75% or even 85% of the value, and there is some leeway with regards to the terms and period of the loan.
Invoice financing is yet another means of borrowing money against assets belonging to the company. In this case, you can borrow a portion of the money that you have invoiced clients and receive that money before the invoice is due for payment. Different options are available, enabling you to use the service completely anonymously or using a full invoice financing management service. This can prove especially beneficial to companies that have a large turnover but an urgent need for capital, or if you struggle to collect invoice money.
A2B Finance And Asset Based Lending Products
At A2B Finance we understand the intricacies of running a business, and particularly in the need for unique financial products and services. Every business is unique, with unique financial requirements and unique finances. Speak to one of our advisors today and we will help you determine which is the most effective means of financing your business growth, and take the first steps towards arranging your finance.