Asset based loans or ABL, also known as Asset based lending/financing, is one of the few very successful funding options for small and medium sized businesses that otherwise find it very hard to generate cash from loans via banks. That’s basically because of 3 reasons.
- Banks prefer not to approve loans for budding businesses since the risk involved is higher.
- Bank loan approval is a very lengthy and complicated procedure. And small businesses cannot afford to wait for so long for funds to be arranged. They need urgent fundings to ensure that their supply chain keeps running.
- Banks do not prefer loaning small amounts. But, small and mid-sized businesses usually need smaller amounts only.
Quite clearly, it’s, therefore, not a very pleasant scenario for such businesses to wait for traditional lenders. Hence, the investment firms like Accord Financial offer alternate funding solutions that are also known as Asset Based Loans.
Primarily, such firms consider a lot of things as assets. The most common examples are:
- Accounts receivable.
- Inventory.
- Machines/equipment.
- And in some cases, even balance sheets and business plans can be considered assets.
So, Accord Financial asset based loans are the funds that are released against assets, and the amount approved and the rate charged is entirely dependent upon the risk involved. Having said that, we’d also like to take you through some benefits of Asset Based Loans that you should be aware of before applying for one. Have a look!
- It’s a Simple Procedure
Financial experts at Accord understand that you’re running out of time if you want immediate funds. Which is why their procedure is very simple.
- You contact them.
- They provide some simple forms to analyze your assets.
- They approve funds against the assets.
And yes, it’s really so simple. The funds can also be arranged within a few hours in case of an urgent need.
- Such Loans are Flexible
One of the better things about Accord Financial is that they do not govern or force you to use the funds in ways that they find fit. They’ll be more than happy to offer suggestions, but only if you need them. On the contrary, they offer various flexible options as follows.
- You can apply for no term loans.
- You can repay the loan at any time you want after paying the first three installments.
All in all, asset based loans have made life much easier for small and mid-sized businesses. You too can apply for one easily at Accord Financial for growth and expansion like never before.