Advantages of Asset-Based Lending
Asset-based lending is one of the best alternative funding sources for many businesses. Here are some of the advantages of asset-based lending:
The application process is quite simple. A company must only fill a one-page application and provide a few financial documents. Thus, the underwriting process is much quicker than it is for traditional financing, usually within a week.
Most asset-based lending facilities provide great flexibility. Since the borrowing base depends on the value of your accounts receivable or other assets, as your sales increase, the amount you can borrow increases as well. This can be advantageous to companies that are growing quickly and need extra working capital to keep pace with their growth.
The most important advantage of asset-based lending is that it provides your business with reliable cash flow. Insufficient working capital kills many businesses. Asset-based lending will help your business to achieve financial stability. The money to pay your employees, hire, or buy supplies will be readily available to you, allowing you to focus on other aspects of your daily business operations.
Asset-based lending has many advantages over traditional financing. The flexibility and simplicity make it a valuable alternative funding source for many businesses. At Accel Business Funding, we have helped many businesses meet their funding needs by providing asset-based lending services custom-tailored to them. We look forward to working alongside you to meet your funding needs.