Asset Based Loans White Plains NY

A company or business may sometimes need a loan, but they don't want to get a typical loan from a bank. An asset based loan can be the thing to use as long as you keep good inventory and accounts receivable records, and you have a business or product that makes sense. A product or service that sells well may be used as collateral for a loan through an asset based loan financial institution.


1 . Local Companies

Strategy Mortgage Corp
(203) 618-4444
222 Railroad Ave
Greenwich, CT
Heartland Mortgage Corporation
(718) 956-9214
3275 Steinway St
Astoria, NY
Astoria Federal Savings & Loan Assn
(718) 932-3200
3124 Ditmars Blvd
Astoria, NY
Greater Alliance Federal Credit Union
(201) 488-3715
40 W Century Rd
Paramus, NJ
LI Mold Inspection & Remediation Specialists
516-543-0775
10 Grace Ct N #A
Great Neck, NY
Lafranco, Sandra
(203) 515-5102
40 Richards Ave
Norwalk, CT
Empire Federal Mortgage Corp
(201) 488-5792
5 Atlantic St
Hackensack, NJ
Mortgage World Bankers
(718) 278-1234
3275 Steinway St Ste 212
Astoria, NY
Hudson City Savings Bank
(201) 967-0950
80 W Century Rd
Paramus, NJ
Bond St Mortgage LLC
(201) 880-4501
95 State Highway 17 North S
Paramus, NJ

2 . What is an Asset Based loan?

Asset based loans are loans that are given not only from banks, but also from a commercial finance company. They are offered on a revolving basis and use the company's assets as collateral. Accounts receivable and inventory are two of the most often used accounts for collateral. Other assets such as real estate, buildings, and machine equipment may help as collateral for a loan. Many companies consider getting an asset based loan when they have excellent assets as collateral, as they can turn their assets into capital.

A company may have such a rapid growth of success that they are unable to finance their ongoing cash needs from within. Asset based financing will only work if the company can prove that they have accounts receivable, and a steady source of income from profits of their business. They must usually also be able to demonstrate that they have had a great track record of turning their inventory over several times a year. Simply put, the company may be doing quite well, but still need a loan to keep going at their current rate of profit.

Although you will still own your assets, the bank may seize them if you do not keep up your end of the loan. An asset based loan is perfect for many small businesses who need a bit more money to continue to grow, but who are still doing well in their business.

3 . Who needs an Asset Based Loan?

A company that is growing very rapidly is a good candidate for an asset based loan. Additionally, companies and businesses that are in the middle of a turnaround or are undercapitalized may be eligible as well. Remember, to qualify and receive a loan, you must be able to show that you can, and have been, turning your inventory over several times a year.

It can be easy to get an asset based loan. If your business keeps a good record of financial statements and reports, and a neat list of inventory, a loan may be easy to obtain. A company or bank will also look at the customers of a company to see if they are typically paying their bills on time and for the correct amount. These factors will be very important in getting an asset based loan for your business.

Getting a loan can be challenging, even when you are trying for an asset based kind. Making sure your business fits the qualifications listed above will help you in your quest for a great loan. Many people can benefit from using an asset based loan, so it is worth looking into when you are strapped for cash, or cannot keep up with the growing needs of your business.

4 . What are the requirements to obtain a loan?

A company that desires to obtain an asset based loan should know the requirements needed before going to the bank or lending company. Before they try to get a loan, they should gather all their data and records, making sure they are current and accurate. When they talk to the lender, they need to have their entire financial information ready, and be able to show their situation in a positive way. Details should be accurate and specific so they can answer questions easily. A borrower should also be able to make the lender as comfortable as possible with their person and their company. After all, everyone wants to be happy, personally, with the company and people they are doing business with. Getting an asset based loan should be no exception.

There are a few requirements to getting an asset based loan. First, the business should already have a decent net worth. They should have long-term viability, and be able to submit a year's worth of monthly projections for profit. It is wise to have a certified public accountant review the company's financial statements first before going into the meeting with the lender. The business should make sure that their principal can guarantee the loan, which should be proved by their financial statements. Life insurance, called keyman or keywoman insurance, may also be required to get an asset based loan. Going into a meeting with a lender well prepared is one of the best ways to ensure that your company does get the loan.
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