What is Asset-Based Lending?
Asset-based lending is a revolving line of credit that is collateralized by your accounts receivable or other assets. Asset-based lending allows business owners to sidestep the prohibitively stringent requirements and covenants of traditional lending channels. At CNH Finance we look at business assets that other lenders overlook, to give you the most purchasing power possible. When evaluating assets your business owns, we look at things including:
- Accounts Receivable
- Inventory
- Equipment
- Real Estate
Asset-based lending is a line of credit designed to promote growth for businesses of all sizes. Whether you are launching a niche start up, or looking to expand your manufacturing operation, asset-based lending is a much more flexible alternative to traditional loans.
Asset-Based Lending is a Versatile Financing Solution
Asset-based lending from CNH Finance gives business owners the liquidity and access to working capital resources which cannot be found through traditional lending channels. Our asset-based lending program can be used to a wide range of needs, such as:
- General working capital
- Growth financing
- Leveraged buyouts
- Seasonal businesses
- Turnaround financing
- Employee Stock Ownership Plan (ESOP) capital
- Special situations
Better than Traditional Loans
Traditional loans often contain prohibitive structures and may compromise business credit ratings. Additionally, loans lock businesses into payment schedules which must be met, even during light sales periods. Asset based lending does not prohibit business growth with such restrictions. Asset based lines of credit are treated much like any other revolving line of credit. Businesses use the capital they need, and then replenish the lines by repaying the amount and borrowing against new collateral.
Using Asset-Based Lending for Business Growth
CNH Finance provides asset-based lending solutions to promote business growth across a vast array of industries, such as:
