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Asset Lending

Asset Lending

Asset lending provides businesses with a financing option secured by their existing assets. This can include inventory, accounts receivable, machinery, or even real estate. It's a way to unlock capital tied up in these assets for growth, operational needs, or unexpected expenses.

How it works?

  • Identify eligible assets: Evaluate your business assets that hold value and could serve as collateral.

  • Approach a lender: Contact lenders specializing in asset-based lending and present your financing needs and the assets you're offering as collateral.

  • Evaluation and approval: The lender assesses the value of the collateral, your business financials, and the overall loan request. Upon approval, terms and interest rates are finalized.

  • Access funds and repay: Receive the loan amount and use it for your business needs. Repay the loan with interest according to the agreed-upon schedule.

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  • Faster access to capital: Compared to traditional loans, asset lending can offer quicker approvals.

  • Improved cash flow: Unlocks capital tied up in assets, allowing for better cash flow management.

  • Flexible financing options: Loan structures can be tailored to your specific business needs and asset types.


  • Interest rates: Interest rates for asset lending can be higher than some traditional loans due to the inherent risk.

  • Collateral requirements: Failure to repay could result in the lender seizing the collateral.

  • Loan-to-value ratio: The amount you can borrow is typically based on a percentage of the collateral's value.

How a Finance Broker Can Help

  • Find the right lender: Brokers have connections with various asset-based lenders and can find one specializing in your industry or asset type.

  • Negotiate terms: Brokers can advocate for you to secure the best possible interest rates and loan structures.

  • Streamline the process: Brokers can handle paperwork and communication with lenders, saving you time and effort.

FAQs (Frequently Asked Questions)

What types of assets can be used for collateral?

A variety of assets can be used, including inventory, accounts receivable, machinery, and real estate. The specific assets accepted will depend on the lender's guidelines and the type of business you operate.

Are there any risks involved?

Yes, as with any loan, there are risks. The primary risk is that if you fail to repay the loan, the lender may seize the collateral you pledged. Additionally, interest rates on asset-based loans can be higher than those of traditional loans due to the inherent risk involved for the lender.

Is asset-based lending a good fit for my business?

Asset-based lending can be a valuable tool for businesses with valuable assets and a need for flexible financing options. Consulting with a financial advisor can help you determine if it's the right choice for your specific situation.

Considering asset lending for your business? A finance broker can be a valuable resource. They can help you navigate the process, find the most suitable lender, and secure the financing needed to propel your business forward.

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