Asset based lending (ABL) is the practice providing a business financing based upon monetizing the company’s balance sheet. If a company has assets such as accounts receivables, real estate, inventory, equipment and machinery, they can use them as collateral to obtain financing. Aside from lines of credit, other forms of asset-based lending includes merchant cash advances, factoring, equipment leasing and invoice financing. When the asset based lender provides funding to the company, they will then place a lien (UCC-1) on the asset.
ASSET BASED LENDING USING REAL ESTATE
Using both personal real estate and commercial real estate as the basis to obtain business capital may be an appealing option to small business owners who have equity in their home or commercial land or building, and are looking to use that equity to obtain financing for their company. With the number of commercial buildings consistently increasing, a business owner may look to leverage that real estate with a 2nd or 3rd lien to obtain a line-of-credit.
The Advantages of Real Estate Asset-Based Financing
Investors and business owners of any size can benefit from asset-based real estate financing, especially those who want to leverage cash flows across several properties and maximize proceeds. Property cash flows are the primary determinant of how much real estate an investor can buy. Beyond that, there are several advantages afforded to investors:
Financing qualification is asset-based, not credit-based
Financing not dependent on personal or business assets
Quick funding turnaround in a fast-moving market
Low down payment requirements
Is Asset-Based Lending The Right Solution For Your Business?
We understand that your business is unique with working capital needs all its own. We will work with you to help determine the best solution to meet your unique situation and particular goals. Our staff of financing specialists have experience assisting companies in a range of different industries, and we will leverage that knowledge to create a custom financing solution for you.
How It Works
Fill out the application form online and one of our specialists will assist you shortly.
Fast same day approval within an hour of receiving your completed application
Contract and minimum paperwork required to receive financing. To fund, typically, we require only: