Asset Based Loans
Our asset based loans provide funding to assist business owners in obtaining inventory or equipment, as well as financing real estate and accounts payable. Applicants will be required to provide proof of assets and financial statements for collateral. However, asset based lending does not require business owners to use their personal credit score, thereby making these loans more attainable for those with a less than desirable credit history.
An Inventory Asset Loan is typically secured by the value of inventory being purchased. Qualified applicants must show that sales of inventory will bring in sufficient income to repay the loan. Our Inventory loans serve business owners who have been denied a conventional loan due to credit history or some other factor. Funding for up to 90% of the total cost of the inventory being purchased can be obtained with proper requirements being met. Inventory loans cannot be used for the purchase of property for its potential future value, or for the purchase of real estate. Business owners who require funding for the purchase of inventory will typically find an Asset Based Inventory Loan the easiest option in terms of repayment and collateral requirements.
Commercial Real Estate
An asset based Commercial Real Estate Loan is based on the value of a business’s owned real estate. The real property owned by the business applying for the loan will be used as collateral to secure the note. This collateral provides the lender with the additional security they need, often providing a financing route for businesses that have a less than stellar credit history.Funding can be provided for up to 90% of the value of the property. Unlike more traditional real estate loans, and asset-based real estate loan allow funds to be used for any variety of business needs. Consequently, this financing can be used to smooth over cash flow issues or to fund expansion outside of real estate.
An accounts receivables loan is based on the amount of money owed to a business in the form of invoices or billing. Funds can be used for the daily operations of the business including the purchase of inventory, employee wages, and utility payments. Small businesses with 2 prior years tax returns and proof of ability to repay the loan are easily qualified for up to 100% financing. Our accounts receivables loans are repaid as funds become available and typically carry low APR. In addition, A/R loans are typically based on the credit worthiness of a company’s invoiced customers, often making it a great fit for businesses with a strong client base but weaker company credit history.
Our Asset-based equipment loan amounts are calculated using the value of business-owned equipment. In order to qualify, the equipment must have long term value and must be used solely for business purposes. Our asset based equipment loans can be used for the purchase of upgrades, construction and for daily business operations. Funding is provided based on the value of equipment, and that same equipment will be used as collateral for the loan. Financing up to 90% is available with our Equipment asset loans with APR between 5% and 15%, making this type of loan readily available to small businesses with less than desirable credit histories.
Our asset based hard money loans are typically secured by real property and are often a few months to only a few years in length. Typical to a bridge loan, a hard money loan provides funding to assist in a temporary financial situation or while your business is waiting for long-term financing to be approved. Our Hard Money loans can be acquired even if the real property owned is in a distressed financial situation. Funding up to 75% of the value of the collateral property is often available and can be used for a variety of business operations including the purchase of inventory or stock, employee wages and insurances, and construction or landscaping projects. Uniquely, hard money financing requires payment only on the interest on the loan, with the final balance due at the end of the term.
An important part of business growth is the acquisition of real estate. Most businesses are eligible for acquisition financing and funds can be used for purchasing real estate whether for storage, expansion, or owner occupation. Loans are typically long-term, 10 to 20 years, for the purchase of commercial real estate. Usually, the business will be responsible for a 10% down payment. Acquisition financing is easily attainable for small business as the loans typically carry low interest rates and easy terms. New businesses can use funds to purchase their first building, seasoned businesses may be using funds to expand or franchise their business. Acquisition financing makes purchasing property for business much less stressful for business owners.