Asset Based Lending

What is an Asset-Based Financing Line of Credit?

Asset-based financing is a catch-all term for a type of financing that allows you to finance corporate assets such as receivables, inventory, and equipment. When financing accounts receivable, the asset-based financing solution works a lot like a conventional business line of credit. On the other hand, when you are financing inventory and equipment, the solution operates like […]

Advantages of Sales Ledger Financing

Sales ledger financing is gaining traction as a financing option for mid-sized companies that are in good financial shape and are growing quickly. This solution is offered to companies that have outgrown conventional invoice factoring but are not able to meet the qualification requirements of a line of credit. Sales ledger financing offers a number of advantages to businesses, […]

Invoice Factoring vs. Sales Ledger Financing

Every company that is growing and doing well eventually experiences cash flow problems. Actually, the most common cash flow problem happens because customers pay invoices in 30 to 60 days. Companies can afford to offer terms and wait for payment – at least initially. But if your company is growing quickly, it will eventually run low on cash. […]

Do You Need Collateral for a Line of Credit?

Getting a business line of credit can be a challenge for small business owners. Most lines are difficult to qualify for and have hefty collateral requirements. For many business owners, this challenge represents an obstacle that a few businesses can overcome. From this article you will learn: Why all lines of credit need collateral The truth about […]

What is Invoice Financing? How Does it Work?

Invoice financing is a general term used for asset based lending products that allow companies to finance slow-paying accounts receivable. There are two ways to finance invoices. The first way is through a sale. Invoices can be sold to a factoring company in exchange for an immediate payment. The second way is using receivables to secure […]

Inventory Financing vs. Accounts Receivable Factoring

Inventory financing is usually offered in combination with an invoice factoring line. Combining both products allows companies to leverage their assets and further enhance their cash flow. In this article you will learn: What is inventory financing? What is invoice factoring? How do these solutions work together Differences What is inventory financing? Inventory financing is a […]

How Does Inventory Financing Work?

Inventory financing is a form of asset based lending that allows you to leverage your inventory. This can help improve your company’s cash flow and provide funds to pay for business expenses, or to purchase additional inventory. This type of financing is useful if you are unable to get higher credit terms from suppliers/vendors, or […]

How to Finance Accounts Receivable and Inventory

Companies that want to finance receivables do so because they can’t afford to wait up to 60 days to get paid by their clients. Financing their receivables allows them to improve cash flow relatively quickly. However, companies that look for inventory financing may be trying to solve two very different problems. On one hand, there […]

Asset Based Lending Basics

Asset based financing has increased in popularity in recent years as companies look for alternatives to conventional bank financing. It’s a solution that provides flexible financing to companies that have cash flow shortages, usually due to growth. This article provides a general overview of asset based financing – how it works, its benefits, and its limitations. It […]

Using PO Financing with Asset Based Lending

Generally, companies don’t use purchase order financing as a stand-alone product. Instead, they combine it with another financing solution, such as factoring. The reason both products are used together is that combining them often reduces total transaction costs. These savings benefit the client and drop directly to the bottom line. The purchase order financing line is used to pay […]