Want An Easy Fix For Your Asset Based Financing?
What does it mean to finance an asset? Asset financing refers to the use of a company's balance sheet assets, including short-term investments, inventory and accounts receivable management , to borrow money or get a loan. The company borrowing the funds must provide the lender with a security interest in the assets. Intangible assets are the valuable property that is not physical in nature. They include patents, trademarks, and intellectual property. What is an Asset Based Loan? Asset based business lending (ABL) is a types of commercial financing in which funds are provided after they are secured with assets on a company’s balance sheet. Such asset based loan collateral may be accounts receivable, commercial real estate, equipment or other business assets. Asset based lending usually comes in two types of facilities: term loans and lines of credit, but are also available in other forms like factoring, merchant cash advances and ACH financing. Factoring, cash advances and ACH an...