Asset-Based Financing or ABF is becoming more widely available to smaller companies. It used to be reserved for major business ventures, but as financing companies have perfected their practices, they have expanded into the small business market. One popular form of ABF is invoice financing, where a financing company advances funds based on existing orders ensuring that borrowing is limited to funds that are in the pipeline.
This can be an efficient way for a business to raise fast money. Asset-based financial institutions offer business funding approaches to companies that don’t qualify for conventional loans or lines of credit from banks because they don’t meet a banks finance requirements. These alternatives usually consist of asset-based loans, accounts receivable financing, and factoring. Remember, the business still is the owner of its assets; however they may be easily seized if repayment isn’t made to the lending company extending the credit. ABF may be a great alternative for your business.
To learn more information about using asset based financing to help fund your busine