What is an Asset Based Lender?
By Lou Wallace
Asset Based lenders supply the same type of loans as conventional banks plus they also can be more flexible in there under writing because of the other loan products. Besides lines of credit, asset based lenders offer factoring and purchase order financing. Some also offer term loans, equipment financing and leasing, as well as short term capital loans to meet short term cash needs.
These asset based lenders are less likely to experience the drastic mood changes like conventional banks and are more stable and consistent in there approach to the financial needs of the small business. These lenders also tend to be more flexible in loan terms and advance ratios. More importantly since they are not prone to panic they can be very helpful to companies that are just starting or experiencing dramatic growth.
This practical approach to lending by these lenders help matters under control if a company does experience a financial hiccup and needs the assistance of a lender who is there to help rather than hinder because they panic. You will also find that asset based lenders tend to have a more experienced staff, better trained personnel and can offer more personalized service.
We will be over the next few weeks running articles explaining the differences in Banks and Asset based lenders and how they differ in there approach to small business lending.
Performance Funding Group, LLC is a locally owned and privately funded asset based lender who has been providing several different loan products since 1997. Lou Wallace has been working in commercial loans since 1971. Lou Wallace can be reached at 602-912-0200. www.performancefunding.com
Excerpt from:
What is an Asset Based Lender?
