Asset-Based Financing

What is Asset-Based Financing?

Asset-based financing is a method of financing that is secured by the assets of a business. It involves the use of collateral, such as inventory, accounts receivable, or other balance sheet items, to secure a loan or line of credit. This type of financing can be used to fund short-term working capital needs or longer-term expansion plans.

How Asset-Based Financing Can Help Your Business

Asset-based financing can help your business by providing access to capital that can be used for a variety of purposes, such as expanding operations, purchasing new equipment or materials, and managing cash flow. Asset-based financing is typically secured against the value of your assets, such as inventory, accounts receivable, and equipment. This type of financing allows you to leverage the value of your assets to get the funds you need without having to give up equity in your business. It also provides flexibility in repayment terms and allows you to access funds quickly.

Qualifications to Obtain Asset-Based Financing

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Small Business Loans

Pay for supplies and material, increase stock, hire great workers or combat a challenging season with our business loans.

$5,000 to $500,000

Equipment Financing and Leasing

Purchase or lease equipment and machinery with our business loans for your company.

Up to $150,000

Ready to Apply?

Filthy Rich Idea makes it easy to apply for asset-based financing for your business. Apply online and our lending partner, Business Funding Now, will give you a decision within minutes. One of their Loan Specialists will tailor a loan package for your business needs. As soon as your application and documents are received, a dedicated Funding Advisor will be in touch to discuss the application and next steps if approved. Approval typically takes 24-48 hours, and funds can be deposited into your account the following business day. It’s that simple!

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FAQs

What information and documents do I need to apply for funding?

Our lending partners will need 3 months of bank statements, the government IDs of all applicants, 1 or 2 years of business tax documents, business P&L and balance sheets, business licenses and formation documents, and a business EIN.

What is APR?

APR stands for Annual Percentage Rate and is a measure of the cost of borrowing money. It is the interest rate expressed as a yearly rate, including fees and costs associated with the loan. It's a good way to gauge the overall cost of your loan and your planned repayment schedule.

How long does it take to get the money once my business is approved?

Once approved, transfer times vary depending on the lender, but it is possible to receive your capital in as little as 72 hours after approval. Lines of credit, on the other hand, may be used immediately upon receiving approval in some cases.

How do I pay back the funding amount?

Our lenders offer secure digital payment portals so that you can make your repayments on time and without penalty. You may be able to change due dates and other important information.

How To Best Prepare for a Business Loan

Determine the amount of money you will request—and do not request an excessive amount.

Although you may have the option of a small business loan, it is important to only request the amount of money that you need and can afford to pay back. This will demonstrate to your lender that you are financially responsible and increase your chances of approval.

Understand the limitations and costs of your loan.

Before committing to a loan, be sure to consider the speed, flexibility, and cost. Some loans are more or less flexible while others charge for speed. Understand the APR and other associated fees and costs so you can make an informed decision.

Avoid taking out multiple loans.

If you already have a loan, it is not advisable to take out another one. This is calledstacking loans and is generally not allowed, except in certain cases (e.g. having a business line of credit with a term loan). If you stack loans without the permission of your original lender, you could be in breach of your loan agreement and default on your first loan. Before taking on another loan, check with your lender to make sure it is allowed.

Ready to Apply?