Asset Based Lending - The Facts
Why be locked into an expensive and limited financing arrangement?
The Receivables Exchange offers a more cost-effective and flexible financing option to asset-based lending. Asset-based lenders make secured loans against certain business assets – such as accounts receivable, equipment and inventory – which you offer as collateral. Though rates are often better than unsecured loans, asset-based lenders charge relatively high rates, and can legally seize assets if you miss payments.
The Receivables Exchange offers a better way to access working capital.
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Asset-Based Lending |
The Receivables Exchange |
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Only grant capital up to about 80% of the value of accounts receivable. Plus expect to pay fees on everything from legal fees, early termination, facility and collateral management.
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Average Advance Rate of 85%-93%; 1.0% Average Discount Rate
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Requires personal guarantees, restrictive covenants and liens on all of your assets. Lenders can legally seize assets if you miss payments.
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No personal guarantees, covenants, all-asset liens. Only take a lien on the invoices you are selling.
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Long-term contracts, rigid borrowing terms and extensive audit requirements are standard and make ABLs an extremely inflexible financing option.
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Choose which invoices to sell, use the Exchange as often or as little as you choose. Simple and efficient application process.
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Asset-based loans can take up to 30+ days to be funded.
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Transactions happen in real time and cash can be available in as little as 24 hours.
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We've already helped thousands of companies raise the working capital they need. Get started now.
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