Free up your books by borrowing affordably against unsold inventory, raw materials or other business assets. Asset based loans for businesses of all sizes.

Inventory finance

Asset Based Loans to Boost Cashflow & Enhance Working Capital

It’s a common practice among businesses across the globe to rely on affordable business loans to enable their businesses to continue to expand. The reasons to borrow may vary from one business to another, but the eventual goal remains the same – to draw more profits in the long run.

Some businesses however, find it more difficult to secure an affordable business loan than others. From bad credit to inadequate trading history, the potential reasons are numerous. In such cases, an asset based business loan can be an ideal solution.

What is an Asset Based Business Loan?

An asset based business loan is a secured business loan. The collateral used with this type of business loan is an actual asset owned by the borrowing business. Asset based lending has seen a significant surge in popularity among UK businesses in recent years.

A common practice among lenders is to discount ‘commercial property’ based business loans from asset based business loans, as they account for wholly different loan terms and interest rates. For the sake of clarity, asset based business finance discussed on this page refer to business loans that are backed by commercial assets exclusive of properties.

Features & Benefits of Asset Based Business Loans

The major features and benefits of asset based finance packages are provided below.

Flexible Loan Amount

Since an asset based business loan is a secured loan, lenders determine the loan amount cap on a case-by-case basis. For liquid assets such as invoices or inventory, it’s common for lenders to agree to a loan amount as high as 90% of the asset value.

Low Interest Rates

As the risk involved in lending against assets is lower, the interest rates for asset based business loans are also low. For short-term loans, lenders can charge interest on a daily basis with fixed, monthly repayment options.

Availability of Working Capital

It’s not feasible for all businesses to get a working capital loan . If your business finds itself in such a position, an asset based business loan offers a more realistic and prudent financing option.

Types of Asset Based Business Loans

Invoice finance, discussed in greater details here , is the commonest type of asset based business loans. In addition to invoice finance, inventory finance (stock finance) is also a popular way for businesses to finance their operations. An inventory finance package lets a business borrow against the market value of their unsold products. The same can be achieved by putting raw materials, stock market shares or even business-owned machinery up as collateral.

Your One-Stop Solution to Asset Based Loans

Commercial Finance Network, being a major UK-wide whole of market broker with over ten years experience, has all the resources it takes to help you secure a fair, flexible and affordable asset based loan. From making sure that your assets are valued fairly, to working tirelessly to speed up the transfer of funds to your account, we leave no stone unturned to help you access the business loan your business richly deserves.

Feel free to contact us today so that we can discuss your specific requirements.