Asset-Based Lending, an alternative funding option, helps businesses work through challenges as they experience rapid growth, navigate a turnaround, change ownership, or experience other complex situations. Unlike traditional lending, typically when lenders evaluate companies for Asset-Based Lending funding, they consider collateral, like accounts receivable and inventory, rather than the business’s recent performance.
This episode of the First Business Bank Podcast introduces listeners to Asset-Based Lending and discusses:
- How Asset-Based Lending is different from Commercial Lending
- Business situations in which Asset-Based Lending is most useful
- What to expect if your business starts down the road of Asset-Based Lending
- Unexpected benefits of working with an involved Asset-Based Lending expert
- Tips to evaluate Asset-Based Lending providers
Businesses seek Asset-Based Lending for a host of situations, but most often when performance has caused their bank to ask them to find alternative financing. That’s when it’s most important to select an experienced Asset-Based Lending provider who understands the industry and can help with liquidity to get the business back on its feet and charging forward.