Asset Based Loans:

One of the best ways to funding a growing business is to tap into a hidden resource that most business owners over look while seeking funding; an asset based loan. These special loan programs are short term loan and can often be long term depending on the way the financing is structure. Asset based loans are secured by a company’s asset such as real estate, inventory and equipment.

The loans can be as creative as one can make them to benefit a number of interests for a client. Typical borrowers are people who may not have the credit worthiness to obtain regular financing due to their little or bad credit. These types of borrowers don’t typical fit the traditional lending guidelines that banks are looking for.

Equity based loans have always been around and often overlooked by borrowers who forget that they have the equity or assets if you will to use as leverage to finance their next big project or take their company to the next level.

The lending for asset based loans is easier due to the fact that you are pledging your equity such as equipment or secured by real estate. If you haven’t thought about using your equity to finance your next business growth this is the time to do so. You might realize that it’s always the right time to grow your business today.

If you are a business owner who is looking for an additional access to capital try tapping into your asset as it might be your best bet in getting the financing to grow your existing business.