Asset Based Financing and Lending 101

It’s pretty self-explanatory if you think about it: an asset-based loan is a loan secured through your assets. Whether you’re an individual or a business, it’s your hard assets that work as proof and help get you that loan you need for your new venture, construction project, or start-up. 

But that’s not all—and that’s not all that’s great about asset-based lending either. They are a kind of revolving credit—a line of credit that can be renewed against your assets over and over again. In this manner, you manage to cover any expenses that you need along the way. 

Asset-Based Lending: The Perfect Financing Solution?

Asset-based lending isn’t something new, but it did have its ups and downs. Capital markets have profited from asset-based loans for decades now (it was huge in the 1990s), the method saw an impressive rise at the beginning of the last decade. To quote Fortune, asset-based lending was “reborn.” And since then, it has seen its many trends change—but it has never really gone out of style. 

Companies like Global Capital Partners Fund, LLC, in New York, which is a nationwide direct lender, provide asset-based lending solutions to people who are looking for assured financial relief. They have helped several growing businesses get through to their capitals, and they’re near-perfect when it comes to their efficacy. 

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What You Require in Order to Get an Asset-Based Loan

Of course, you require an asset, but that’s not what we mean here. You’re probably wondering what can count as your “assets.” Does it only have to be property? Not really. Certain industry-specific apparatus such as machinery, equipment, inventories, and your accounts receivable also count as legitimate collateral. 

If you’re wondering how companies like GCP Fund, LLC is able to finance growing businesses so readily, it’s because they work with multiple global financing partners through their lending programs. Certain financing tools are offered to clients, including term loans and revolving lines of credit. GCP Fund LLC also doesn’t restrict the nature of the industries that need these loans. The service is extended across hospitality, offices, retail, and other sectors. 

Why You Need It

Although asset-based funding sounds like a great enough idea on its own, here are some things it can definitely help you with:

  • Your working capital
  • Facilitating rapid growth in business
  • Facilitating land and other acquisitions, mergers
  • Funding your payrolls
  • Getting supplier discounts
  • Recapitalization

Still not sure about it? You can reach out to the experts at GCP Fund LLC and discuss your options. 

Categories: Asset Based Lending

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