We are a Full-Service Business Financing Firm with Consultants that
Specialize in Asset Based Financing
What is Asset Based Financing?
Asset-based lending is a set of business financing products funded by lenders to Company’s that is secured by assets of the business as collateral. These products can be funded as either an Asset-Based Loan or Asset Based Line of Credit both of which may be secured by inventory, accounts receivable, equipment, or other property owned by the Business.
Companies of all sizes from Small Businesses to Large Scale Corps that are looking to secure financing to obtain or purchase physical assets are the most common to utilize Asset-Based Lending.
Businesses of all sizes typically take on Asset Based Financing products as a means to obtain assets to utilize within the company. Cash is king on any day of the week and some businesses may choose to hold on to their capital and use these products to secure the next Asset for their company needs.
Once a company has identified an Asset they would like to secure for their business. Then a lender that funds Asset Based Financing products can provide the capital needed to obtain the asset the company wants. Whether the business is trying to add on additional inventory , obtain a piece of equipment, or purchase goods in the international markets these products can help a company. Asset Based Financing is typically secured by not only the asset that is being acquired but additional assets of the company may be utilized to secure the new financing like collateralizing the cash flow, the inventory, existing equipment, and or the invoice receivables.
Asset Based Financing products can allow companies the option to hold on to their current liquidity. By using one of these products to obtain the next asset needed for the business, instead of the companies current capital reserves. Asset Based Financing products could help place greater strength from a strong cash position.
The cost of capital to secure an asset using an Asset Based Financing product is typically lower than other types of funding options, such as an unsecured line of credit or loan.
With Asset Based Financing additional inventory that is acquired or generated during the life of the loan can be added to the borrowing base, which in turn can increase the loan (or line of credit if applicable). Meaning Once paid off the assets acquired via one of these products may still be available to be used as collateral when the need arises for working capital.
Traditional banks are bound by high cash flow requirements and tough federal regulations that restrict putting out loans where the company has a relatively high debt-ratio. Therefore that leaves a huge gap between companies that may need capital, to in turn be funded by utilizing Asset Based Financing
Asset Based Financing products can help boost businesses financial profiles. By providing businesses with additional methods to secure Assets to their bottom line and create new tradelines that get reported towards the companies business credit score.
What are the Asset Based Financing products we focus on?
Supply Chain Financing?
Supply Chain Financing?
Equipment Leasing And Equipment Financing
Letters Of Credit
Standard Interest Rates or Cost
Prime Plus or Libor Plus
Typical Underwriting TimeLine
3-5 Business days
Available Capital Limit
Up to $350k per Entity.
Average Term Limits
In closing, According to most notable sources the Asset Based Financing market bet US lenders and businesses was about $495 billion in 2019 and are expected to grow in the range of 6%–8% in 2020. Businesses are growing and adding equipment, machinery, vehicles, Technology, or any assets to utilize within the company is a much-needed part of that growth. Troy Business Group has a team of seasoned Business Financing Consultants that specialize in providing clients with access to all of the fantastic Asset Based Financing products on the market. Please apply online, email us for an appointment, or call us today. Our team is committed to helping your business grow with Asset Based Financing of any sort and will guide you through the loan process each step of the way.