Asset Based Lending

What is an Asset-Based Financing Line of Credit?

Asset-based loan (ABL) is a catch-all term for a type of financing that allows you to finance corporate assets. These assets include accounts receivable, inventory, and equipment. ABLs secured by accounts receivable work like a revolving line of credit, with some differences. This article discusses how asset-based lines of credit work and how they are […]

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 that applies to several products that allow you to finance accounts receivable. The two most-used solutions are factoring and sales ledger financing. In this article, we discuss both solutions in detail. The article covers: Quick summary What is factoring? What is sales ledger financing? Which solution is right for […]

Inventory Financing vs. Accounts Receivable Factoring

Summary: Invoice factoring allows companies to improve cash flow by leveraging their accounts receivable. Inventory financing, on the other hand, enables companies to leverage the funds tied to their inventory. However, most small business owners misunderstand each solution’s role in their company. This misunderstanding often leads to expensive mistakes. Invoice factoring is more flexible and […]

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

Summary: Companies that finance their accounts receivables typically do so because they can’t afford to wait up to 60 days to get paid by their clients. Financing their receivables solves this problem and allows them to improve cash flow quickly. On the other hand, companies that look for inventory financing are trying to solve a […]

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 […]

How to Select the Best Asset Based Lending Company

Selecting the right asset based financing company is one of the most important decisions you can make for your business. Your evaluation process must be designed to ensure you choose the best asset based lender to fit your tactical and strategic financing needs. This article describes a short process to help you evaluate potential lenders. If you are not […]

Seven Advantages of Asset Based Lending

Asset based loans have been gaining popularity in recent years. They offer a number of the advantages that you can expect from similar products, such as a line of credit. However, qualifying for an asset based loan is much easier. This article discusses the six most important benefits of asset based loans. To learn more about […]