Asset Based Lending

Asset Based Lending

Working Capital
Asset Based Lending

Asset Business Lending is a loan secured by collateral assets. The loan, or line of credit, is secured by inventory, accounts receivable and/or other balance-sheet assets. Asset Based Lending is often used to meet various cash flow needs of companies, for example, meeting payroll or building inventory. Interest rates on these loans are less than interest rates on an unsecured loan or line of credit because if the borrower defaults the lender has the ability to seize assets and attempt to recoup their lending costs.

 

Do you need working capital to help fund payroll, finance a business acquisition, or buy out a business partner?

Is your bank unwilling to loan on accounts receivable or inventory?

MNA partners with the top capital service providers in the United States to help your firm finance up to 80% of eligible receivables and 50% of finished inventory. Asset based lending is a great solution for businesses that have needs that are outside the realm traditional banks can offer. Whether it’s greater leverage, softer covenants, or more flexibility, asset based structures can be customized to meet the needs of each individual company. Asset based lending provides a line of credit based on your company’s eligibility.

  • Accounts receivable
  • Inventory
  • Machinery and equipment

 

Asset based lending offers more flexibility than other methods of financing, and it is a fast and cost-effective way to obtain working capital. Unlike certain types of structured financial products, with an asset based lending relationship, you do not have to give up equity in your company. Asset Based Lending gives your company the flexibility it needs to grow, recapitalize, take advantage of supplier discounts, buy-out shareholders, or even to fund payroll. It can increase or decrease based on your current business size and needs, and you’ll have daily and weekly access to your line of credit when you request it.

Asset based loans can be a much-needed source of capital for companies that are rapidly growing, highly leveraged or in the midst of a turnaround or undercapitalized. Sometimes a company simply needs that infusion of cash to get over a financial hump or prevent growth from stalling out. The loans are especially well-suited for manufacturers, distributors and service companies with a leveraged balance sheet whose seasonal needs and industry cycles often hamper their cash flow. Asset based loans can also be used to finance acquisitions.