Virtually all small business owners are faced with the prospect of having to raise cash at some point during the life cycle of their business. Unfortunately, most small business owners will have difficulty being approved for traditional loans, and this is where asset-based lending can make a major difference.

What asset-based lending is

Just like it sounds, asset-based lending involves a loan which is guaranteed by company assets, for instance equipment like computers or vehicles, or even Accounts Receivable, which are major assets for a company. In asset-based lending, any of these assets can provide collateral to a lender, to increase the likelihood of being approved for a loan.

How asset-based loans differ from other loans

The big difference between asset-based loans and traditional business loans is that there is no personal collateral involved. If you were to apply for a loan from a traditional lender like a bank, you would probably be required to put up your home or other assets as collateral for the loan. Asset-based lending allows you to maintain the financing on a strict business footing, with none of your personal assets ever at risk.

Advantages of asset-based lending

It’s not generally necessary to have a stellar credit history or business credit score with asset-based lending, since the assets are providing collateral for the loan. This may be one of the single biggest advantages of asset-based lending over traditional loans, because without tangible assets providing solid collateral for a bank loan, most small business owners would have their applications denied. You’ll also be able to continue to use those business assets even while they’re serving as collateral on your loan. If you need a loan quickly, an asset-based loan will undoubtedly be processed much faster than any traditional loan through a bank.

Asset-based lending with JNI Lending

If your business has tangible assets which you can use for collateral in applying for a business loan, we would like to hear from you at JNI Lending. Contact us today so we can discuss opportunities to provide you with the financing you need for your business.