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Asset Based Lending for Small Businesses

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If your business is growing, you could eventually outgrow factor financing. Selling individual invoices is a fantastic way to accelerate cash flow, but working capital advances aren’t necessarily the best way for all companies to continue growing.

Asset Based Lending

Asset-based lending is the next step. With mid-sized businesses, you’re not only looking for immediate capital to pay for your next shipment, but a loan to upgrade or expand. With a traditional loan, those lending entities may not recognize the value of the different components of your company. Their job is to look for collateral that can immediately by monetized. We have years of experience in commercial banking, so we know how to bridge the gap between the big bank mentality and the reality of modern business. With asset-based lending, we can get you the funding you need to help you take the next step in growing your business.

Asset Based Lending Qualifications

A traditional loan officer might view your company’s assets as a leased building, heavily-used equipment, and little else. At Viva Capital Funding, we are able to look deeper. Your accounts receivable, your inventory, and even used machinery all qualify as collateral. A bank simply does not operate that way.

Are Asset-Based Loans Right for You?

To make a good decision about financing, there are many things to consider. The first is determining how much capital you need. Generally, an asset-based loan starts in the $750,000 to $1.0 million range. If you own a small company, this is probably more than you need. In that case, factoring is still the best option.

If you decide that level of funding is necessary for your goals, you then need to make sure your finances are in order. When compared to factoring, asset-based lending requires much more financial reporting. You must submit collateral reports and CPA-reviewed financial statements. If you have these—and the need for a loan of this size—there’s one more criterion you must consider.

That final criterion is your company’s ability to pay a loan of this size off. The need for a million-dollar loan doesn’t mean your company is really capable of paying off such a large debt. You’ll need to take your net worth and typical earnings into account.

If asset-based lending seems like the right type of financing for your company, Viva Capital Funding wants to help. We have the experience and expertise to make asset-based lending as simple as possible. Get the funding you need to take your company to the next level.

We will custom tailor your financing needs.

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