Asset financing is all about getting a loan by using your company’s assets. Assets, in this case, can be anything from FFE (furniture, fixtures, and other equipment), a company’s accounts receivable, or inventory. However, according to the guys at Equipment Loans Online, the current trend in the industry has seen companies using their inventory asset as collateral.
What is asset financing used for? Most of the time, the money generated from this type of borrowing is used as working capital. If you search for them online, you will see that there are many asset financing companies out there. And while we would tell you that all of them are good companies since the industry is regulated, the fact is that there are lenders that are better than others.
If you need money for additional capital, shop for it like you would shop for an expensive piece of equipment. Get a quote from at least three lenders and then compare and contrast their terms and conditions. Most asset financing companies have streamlined their process to the point where you can actually get a response on your application within the day and get the money shortly thereafter.
But rather than applying for a loan individually with several lenders, you might want to compare different loan products from one so-called portal website where you only search once and you get several results later.
In order to better narrow your search, search for a website that caters to your industry. There are lenders that specialize in lease financing for car rental companies, equipment financing for businesses in the hospitality industry. Basically, whatever industry you belong to, there would be a lending company that caters to it. So, connect to the Internet and get more information now.
While you are at it, take a look at your assets and see which ones you can afford to lose.