Skip to Content

What Is Asset Based Lending And How Can It Help Grow Your Business?

What Is Asset Based Lending And How Can It Help Grow Your Business?

Submitted by • October 12, 2018 www.attractcapital.com

Asset-based lending depends on using assets, such as inventory and accounts receivable, as collateral to receive funding. In simple terms, a company takes a loan against the collateral value of its hard assets. Asset based lenders use advance rates against the collateral value of the assets to make the loan. The advance rate is usually 80% for receivables and 45% for inventory.

Voted by:
Voted by attractcapital

<a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>