A business must rely on consistent access to working capital in order to maintain a degree of success. Sadly, this can be quite difficult to guarantee. Even businesses that have been in operation for years can run into financial obstacles and significant setbacks with cash flow. Though it might be a headache, there are solutions to be found. One practical decision available to you is asset-based lending. With ABL, you can use your assets to fund your company’s future. Learn more about this alternative financing solution and determine if it is the right fit for your business.

The Basics of ABL

There are a few key details to understand about ABL solutions before beginning. For one, it is quite different than a traditional loan. With a typical business loan from a bank or credit union, eligibility is determined by assessing an applicant’s credit history and other pertinent details. This is not the case when you pursue lending based around your assets. Instead, a lender will offer you financing based on the projected value of a particular piece of collateral you put forward. This simple difference makes ABL a much more manageable option.

How You Benefit from Asset-Based Lending

Though there are plenty of advantages that come with using asset-based lending solutions, the most exciting is having access to cash when more traditional options didn’t pan out. As long as you have collateral, you can use it as an asset to get the financing you need. There are several different assets that will qualify for this financing option. Typically, lenders accept big-ticket items like real estate, vehicles, and machinery. However, you can even use invoices and purchase orders in some circumstances to get funds through specific financing services.

Picking the Right Fit for You

Another important point to note is that there are countless options available to help you customize your financing experience. Some business owners prefer taking out a simple loan, as it is a straightforward way of getting a lump sum at once. Others are more interested in using an asset to cover the costs of a credit line. Whether you finance a piece of equipment or factor your invoices, you can go about asset-based solutions in a variety of ways. Simply find what makes sense for your particular situation and see how the solution can be applied.

Pursuing asset-based lending solutions is a fantastic way to get your business the access to capital it requires. Look over the options available and see which is the most sensible fit for your company’s goals.