Inventory financing is a type of asset based lending that allows your company to leverage existing inventory. It can provide your company with funds to purchase additional inventory or handle corporate expenses. From this article, you will learn: How inventory financing works What type of due diligence is required to set up a line Advantages and disadvantages of this […]
Asset Based Lending
Inventory Financing vs. Purchase Order Financing
Both purchase order (PO) financing and inventory financing can be used to finance certain types inventory. However, both solutions work very differently and serve very different business objectives. From this article you will learn: 1. What is purchase order financing? Purchase order financing allows you to finance the supplier costs associated with a specific customer purchase order. […]
Can Asset Based Lending Finance a Small Business?
Asset based lending has been growing in popularity as a way to finance small and mid-sized companies. Asset based loans are easier to get than commercial lines of credit and provide more flexibility. Initially, asset based loans were offered only to mid-sized companies – those with at least 50 million dollars (CAD) in yearly turnover. However, some asset based […]
What Is an Asset-Based Loan (ABL)? How Does it Work?
Summary: An asset-based loan (ABL) is a type of business financing secured by a company’s assets. This financing improves liquidity and can be used to cover expenses or to invest in company growth. Asset-based loans can be structured as a term loan, revolving line, or a combination of both. The loan structure depends on the […]