Have you tried applying for business funding only to feel frustrated with the long application process and small likelihood of approval? If so, you may find better luck with asset-based lending. This is an alternative type of lending that allows you to secure a business loan with assets you already own or the assets you’re purchasing with the loan.

Build Your Business Credit Using Asset-Based Lending

It can be challenging to find a business lender that will approve your loan request if your company has existed for less than two years. Many lenders simply won’t borrow money to inexperienced businesses no matter what the company’s cash flow situation looks like. Asse-based lending gives you the chance to borrow the funds you need while building your credit to position yourself for greater lending power in the future.

From accounts receivable invoices to computers and inventory, all companies have assets that could be valuable for securing a business loan. Be sure to check with your lender regarding the types of assets accepted before completing a loan application. Keep in mind that the lender could repossess the asset you offered as collateral if you fall behind on your loan payments. Most people plan to use asset-based lending for short-term purposes for this reason.

Other Benefits of Asset-Based Lending

Since your business asset secures the loan, you don’t have to risk personal assets or have a high credit score to obtain an asset-based loan. You also don’t have to stop using the asset just because you have offered it as collateral for a business loan. Yet another benefit of this alternative financing source is that you can receive the funds from an asset-based lending application rather quickly compared to a traditional bank loan.

Could asset-based lending be the right financing option for your small business? We invite you to contact Painted Horse Financial today to learn more about this and other alternative sources of funding for your new company.