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Home / Asset-Based Lending
Leverage receivables, inventory, purchase orders, and other assets to obtain the capital necessary for growth.
Asset-based lending is a type of business financing in which the lender secures the agreement with an asset or collateral. Asset-based lending can give the borrower either a loan or line of credit.
Collateral for asset-based lending doesn’t need to be real estate. Other more liquid assets, like receivables, inventory, purchase orders, and potentially equipment, can also act as collateral. You can leverage one or more of these assets to secure a loan or an ongoing credit facility/line of credit for your business.
Unlike other financing options, your business can qualify for asset-based financing with a low credit score or no history. Rather than meeting traditional requirements, you can qualify based on your receivables, inventory, or other assets.
Asset-based lines of credit and loans help you capitalize on the value of your liquid assets immediately. Instead of waiting for payments, you can get working capital to cover expenses like growth, expansion, additional inventory purchases, and more.
Asset based lending works like most other business financing options—you get cash to drive your business growth and pay it back over time. Asset-based lending, however, involves putting up an asset (which will be explained below) as collateral. You can choose to put up real estate, but there are many other options that may be simpler, easier, and less risky.
It’s not uncommon for new and older businesses to experience cash flow issues due to rapid growth or slow-paying customers. In these situations, asset-based lending helps you unlock instant cash to use immediately by leveraging assets like receivables, inventory, and more. Many businesses utilize asset-based lending for standard working capital needs or shortages, during seasonal slow periods, and to cover slow-paying receivables.
When you put an asset up as collateral, you’re reducing the lender’s risk and giving them confidence because they’re given a security interest in the asset. As a result, this may reduce your interest rate. However, interest rates can vary based on a number of factors.
Wondering how you can qualify for asset-based lending? The process can be easy, but it depends on where you go.
Banks have a long turnaround time and a complicated process, even while your asset will lower its risk. While rates may be slightly lower, you’ll pay for this in extended review processes and potentially lower financing amounts. If you’re not concerned about your opportunity fading away or your competition catching up, though, then this may be a good option.
Marketplaces, on the other hand, have a simpler and easier qualification process that ensures you can review more options faster. Here are IBA Loans qualifications.
The lender will approve your company to borrow based on the collateral’s posted value on the balance sheet. The more valuable your asset or assets, the more the lender will feel comfortable approving your business for.
Christina Foley2024-06-11Alex R. with IBA Business Solutions was extremely helpful. He was knowledgeable and helped us with everything in regard to this very quick loan. He explained every aspect of the loan and never left us wondering or waiting. It was quick and easy. We hope to do business with Alex R. in future. It was a very pleasant experience. Our team was satisfied with the process, and we will be reaching out again when the time comes. Thank you, Alex R. it was a pleasure, doing business with you. AAH
Jane Parsons2024-06-06Alex was very professional and informative
Kristin Thompson2024-06-01Brian is Awesome he makes the entire experience easy and from start to finish. I won't use anyone else. Great experience.
Charlotte Lee2024-05-16Taylor was my caseworker. I really must say that Taylor was AWESOME. She’s an expert at customer service. There were times my own attitude got out of hand but Ms.taylor never one time stopped helping. She did it in such a way where I always felt like she put me 1st. She always made me feel important. This is my 2 nd time dealing with IBA and Taylor was determined to find a solution. I’m happy with my results. Thx again Taylor.😊
richard fletcher2024-05-10Hey thing for the help I appreciate everything u did it was like 123
james burke2024-05-09Had very good experience with Alex Rubin help easy and fast help good job and god bless
Larry Thornton2024-04-17Quick and professional
Tina Bryant2024-03-29I was so proud to be a part of this- everything he and Elvis said they was going to do they did- Alex thank you -
Michael Reese2024-02-28Wow! Finally, a reliable source of help when needed! As an African American business owner, it is often easy to be disregarded when seeking temporary assistance. However, this company stands out. I collaborated with Ethan Scott, who displayed exceptional diligence. The application process commenced yesterday, and today I received my loan. I express my gratitude to Ethan and IBA Business Solutions.
Merideth Muzic2024-02-26They team was very helpful in providing information on their products and services. The delivery process was quick and easy.. Highly recommended.
Building a business is hard. We completely understand that. Here at IBA, our pledge is to turn your stress into solutions. Our business financing products and services will support your journey wherever it may take you.
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