Asset-Based Loans

Asset-based loans are secured business loans requiring an operation to use its assets as collateral to secure financing. These loans are structured to provide businesses with capital based on the value of their assets, which can include accounts receivable, inventory, equipment, real estate, and other tangible and intangible assets. Asset-based loans are typically used by businesses to support their working capital needs, fund growth initiatives, or manage short-term financial obstacles.

One of the main tenets of asset-based loans is the use of collateral. When you decide you want to acquire an asset-based loan, you must pledge some of your assets to secure the funding. Then, your lender will determine the value of your assets and extend either a loan or line of credit based on a percentage of this total value.

In many cases, asset-based loans are used by businesses facing cash flow challenges, even though the operation has no shortage of assets. If your business decides to obtain an asset-based loan, you can use the capital to finance inventory purchases, manage seasonal revenue fluctuations, fund the expansion of your operations, or simply overcome short-term financial issues.

We have helped many businesses in Louisiana and nationwide address their cash flow and expansion issues with asset-based loans. If you are interested in securing one of these loans or starting the application process, reach out to us at Manfre and Associates Consulting Services
today.