Asset-Based Lending: What are the Advantages?

 Asset loans are based on assets. Typically, the collateral is inventory and accounts receivables. You borrow against future revenues of your business to obtain money in the current. Speirs Finance will advance funds according to a percentage of the value of secured assets. Fast and simple, Speirs Finance has granted multiple inventory advances of 65 percent to our client. In cases where the market percentage for inventory advances is typically 40-50 percent.

Finance can be very complex and numerical. Speirs Finance created a guide that will help you understand the benefits of asset-based loans.

• Better liquidity: An asset loan can improve the company's liquidity. Companies that are rapidly growing can benefit from cash flow to stabilize their finances, forecast cash flow, and even level out seasonal revenue.

• It's easy to get: A Speirs Finance asset-based loan is much easier than obtaining a line of credit or a loan for business from a bank. Private lenders must have a track record of profitability with a short repayment history and a reasonable level of financial control. Personal credit scores are not often taken into consideration. Other than those qualifications, assets that can be leveraged are essential. Speirs Finance Funds may also use real estate, inventory, and equipment as collateral.

• Flexibility: Speirs Finance offers great asset-based flexibility. There are very few restrictions as long as the costs are not for business purposes. The value of your receivables and collateral backing it are the criteria for financing. Your business doesn't need to undergo another underwriting process as sales increase. Companies that are rapidly growing and require additional funding quickly will benefit from this.

• Fast funds retrieval: Companies that meet the requirements for an Speirs Finance asset-based loan can be approved quickly. Applying for an asset-based loan is more rapid than applying for a conventional loan.

• Stepping stone to other products: Companies in intermediate growth phases typically use asset-based lending as a step-stone to other products. A loan based on assets will help you grow your business and improve your financial standing with a lender. It would be best to transition to a better financial solution once your economic history has been established.

• Comparable lower costs: Most asset-based lenders like Speirs Finance have lower factoring expenses, among other things. This obvious advantage allows for savings that will impact your bottom line.

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