All the Essentials of Asset-Based Lending

There are number of advantages which small business owners can expect from asset-based lending, and these advantages can make asset-based loans even more appealing than securing loans from traditional lenders. Below are identified some of the ways that asset-based loans can be highly beneficial to business owners, and why they should be considered as a source for funding.

Ease of securing funding

It’s generally much easier to qualify for an asset-based loan than it would be for a traditional loan from a bank. Generally speaking, all that’s necessary to qualify is several months of being in business and showing a profit, good financial controls, and assets which can be used as the basis for funding.


There are very few restrictions which are attached to asset-based lending, other than the fact that a loan needs to be used for business purposes. This same cannot be said for traditional loans, and many other types of loans as well.

Speed of acquiring a loan

Another advantage of asset-based loans as opposed to traditional loans, is that they can be arranged far more quickly than those from a bank. The underwriting process for an asset-based loan can be handled much faster than the weeks or months required by bank loans.

Enhanced liquidity

Probably the biggest benefit of an asset based lending is that it improves your company’s liquidity, and if used correctly, can stabilize your cash flow and overall financing. This is especially important for companies subject to seasonal fluctuations, tight cash flows, and those which are undergoing growth spurts.

Springboard to other financial products

Asset-based lending is often used by companies which are in their intermediate phase of development. That puts them beyond invoice factoring, but not quite prepared to qualify for the business line of credit that will provide long-term stability. By making proper use of an asset-based loan, you can literally take your business to the next level of financial stability.

Asset based lending with Allegiant Commercial Experts

If you as a business owner are interested in asset based lending to fund your business growth, contact us today at Allegiant Commercial Experts. Our financial specialists will be glad to discuss ways that your important business assets can be used to generate all the funding you need to take your business to the next level of success.

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