Does Your Company Need Immediate Funds?
Companies that need to immediately infuse capital into their operations can choose to take a short or medium term loan or they can look to asset based lending. Liquidity SA knows that; when time is of the essence, it is advisable to look for quicker loan processing in order to meet targets or deadlines. This is one of the main reasons Why Asset Based Lending is better than a Bank Loan.
Asset-based loans are considered a lot easier than a loan to obtain, as the underwriting guidelines for these kinds of loans are clear-cut and simple. As long as you have the assets to present as collateral, you can readily qualify for these loans. Assets may include current inventory, pending receivables or orders, equipments and/or real estate. Business owners may also elect to use personal assets in order to acquire capital for their business.
From the point of view of the lenders, the risk is much lower on these kinds of loans. Should the borrower default on the loan, they could easily recover their investment from the assets used by the borrowers as collaterals. Proceeds from the sale of these assets should enable the bank to recoup their initial investment.
In most instances, the rates offered on asset-based loans are much lower than those of regular bank loans. Again, this is one of the reasons Why Asset Based Lending is better than a Bank Loan. The cost is relatively low and the borrower is not saddled with high interest payments.
For start-up companies or companies that do not have credit ratings or established track records, asset-based lending is an ideal way to procure funds. It is also an option to various manufacturing companies requiring immediate funds to facilitate customer orders or acquire additional raw materials for their production.
See Why Asset Based Lending is better than a Bank Loan Get and asset based loan with no credit check. We offer quick and accurate loan offer estimates. Visit liquiditysa.com and get a loan against your assets.