Asset-based financing is a specialized method of providing structured working capital and term loans that are secured by unencumbered equipment, inventory and machinery as well as clear titled real estate or land and equity loans. This is a good way for your quickly growing business to obtain the capital you need to meet your short-term cash needs. You are able to use your own assets to generate a cash flow.
When you apply for an asset-based loan, you pledge your assets to secure a loan. You still own your equipment or real estate, but if you don’t make good on your payments they can be seized.
The OCM Financial Group provides asset-based loans for companies even if you have less-than-perfect credit. We will not only look at credit, but your years in business and whether your assets are liquid. The main advantage of asset-based financing is that smaller companies can get more cash more quickly than a traditional bank loan.
Benefits of asset-based financing:
- The ability to unlock cash that has been invested in your company’s infrastructure
- The ability to take advantage of the sales growth immediately
- Access to a revolving credit line secured by your assets
- Maintaining a greater level of flexibility compared to traditional loans
- The ability to keep the assets that are securing the loan