Asset-based lending is a process in which an agency lends money to the borrower in an agreement that would get secured by collateral. Collaterals include inventory, any sort of property owned by the borrower, or other components of the business. It is specifically business-oriented and does not serve individual customers. Asset-based lending has numerous advantages to get a business going.

• Easily Obtained

Obtaining an asset-based loan is way easier than acquiring a business loan from the bank. The process of obtaining an asset-based loan includes minimal paperwork and the businesses need to go through a small list of parameters.

• High Mobility

An asset-based loan is highly flexible and has relatively lesser restrictions to obtain it. This is highly helpful to those businesses that are fast-growing and need a continuous flow of fund so that they can grow at equal speed. The loans lent are business purpose-specific.

• Immense Liquidity

For businesses to grow properly, liquidity of funds is very important and needed. Asset-based lending comes effective in this scenario. Companies that aim to achieve high and earn good revenue need a steady flow of money to operate and continue efficiently. And, the best thing to do is have an asset-based loan.

• Easy Fund Retrieval

The overall process of applying and then getting approved for an asset-based loan is a very quick and easy process. It is comparatively easier than the conventional processes of obtaining a bank loan or line of credit. Since the process is quick, funds can be retrieved rapidly needed for the business to grow.

• Relatively Affordable

Asset-based loans have relatively lower rates of interest than other bank loans or private lenders. This is a great benefit for businesses to opt for it and spend less and acquire more.

• Adds to the Growth of a Company

Companies or businesses that are in the transition of their growth phase are more likely to obtain an asset-based loan. Obtaining those can help in a steady fund flow which is needed to grow even more and establish a strong base in the market to generate more revenue and produce better and newer financial solutions.

Accord Financial asset based lending lends money to businesses that are well-established as well as to the ones that have the potential to perform and grow better in the near future at compatible interest rates and minimum paperwork.