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Here’s why your business can benefit from asset-based loans

For small businesses, keeping up with financials and unexpected need for funds can be hard. Securing a loan can be really tricky at times, given that conventional financial institutions and banks have a whole list of requirements. Previous assumed to be the last resort for businesses, asset-based financing is the new option of choice. In Canada, services like Accord USA asset-based lending work with small businesses, retailers, and startups, to offer them financial assistance through these loans, without a complicated set of requirements. In this post, we are discussing more on asset-based lending and things businesses need to know. 

Reasons to consider asset-based loans

  • Use your assets effectively. You have to understand that asset-based loans are absolutely flexible and allows a business to make the most of what they already own. You can use your assets as effectively as needed, without waiting for weeks to get an approval for a standard loan. 
  • Easy to get. Like we mentioned, asset-based loans are super easy to get, and you can expect to get funds immediately after approval. Lenders know that their risk is limited with this form of financing, and therefore, they like to give the advance as soon as possible. 
  • Low interest rate. Unsecured loans may seem easy to access, especially if your business credit history is good, but the interest rate is always a bummer. That isn’t the case with asset-based loans. You can expect a low interest rate, and the repayment plan is usually very flexible. 
  • Loan for diverse needs. No matter whether you want to work on restructuring your business, need help with expansion plans, or want to just invest in more assets, asset-based loan is worth considering. It allows a business to retain the flexibility they need with the loan amount. 

Things worth considering

If you are using asset-based loans for the first time, it is important to review the terms & conditions in depth. You must also consider if your company will be able to repay the loan as per schedule, because assets are at stake. Also, any kind of balance sheet asset can be used for this form of financing. For instance, you could use your accounts receivables or even your standard inventory to get an asset-based loan. Just make sure that the lender you choose is reliable and quick to act, and they should offer a repayment plan that works for your business in the long run.