Unsecured loans are usually fairly difficult to come by, since approval is often contingent upon having very good credit history and several years of stable financial operation. Asset-based financing is a very viable alternative, since you can use those assets already associated with your business to generate the funding needed to keep things running smoothly, or to grow your business.

Here are some of the most important facts about asset-based financing.

Asset-based lending is affordable

When you compare asset-based lending to conventional loans, you’ll probably find in most cases that asset-based financing is just as affordable as a traditional loan would be. For instance, many businesses use their invoices as assets when trying to secure financing, and in this process a small fee is charged, which is often much less than you might pay for bank loan interest. In addition, the fee charged for accounts receivable financing is only a one-time charge, whereas the interest rate applied to a bank loan occurs over the entire life of the loan.

Asset-based lending is flexible

When you apply for a conventional loan from a bank, you are very often restricted as to how you can use that money, and you must have a solid business purpose in mind. For the most part, alternative lenders don’t really care how you use the loan money from an asset-based loan, which means you can use it to handle virtually any kind of financial issue you want.

Asset-based lending is secure

Many new companies as well as well-established companies prefer asset-based lending, because they realize that there is virtually no risk to their credit history or their payment history, since funds availability is based on the value of their collateral. By contrast, unsecured loans can literally ruin a business, if it is unable to pay back the amount of the loan. Since there was no collateral associated with the loan terms, a lender would have to pursue all means necessary to recover the funding which was originally loaned.

Asset-based lending with JNI Lending 

We at JNI Lending have arranged for many asset-based loans to help small businesses achieve their goals and objectives. Contact us at JNI Lending, so we can provide that same kind of assistance to your small business.