Asset loans to Finance your Business

Asset Loans

Short term or long term asset loans can be availed by business owners for operational or capital expenses. The time period of the asset loan depends upon the business requirement. It can be for a period of 1 month to 12 months. The loan amount depends upon the equity value of the property and the requirements of the borrower. The lender can lend as much as 70-75% of the equity value of the asset. The loan amounts can be as little as $30000 and can be as $300000 depending upon the size of the company, loan requirement and the equity value of the asset. The loan can be processed within 24 hours after submission of all the documents and the applicant can expect to have the funds in their bank accounts within 72 hours. The speed of processing makes asset loans from private funds attractive for business owners.

Big, small, medium or start-ups businesses of any type can opt for an asset loan. The funds can be for buying new equipment, renovating the office, starting a new business, repaying an existing debt or for acquisitions. It can also be for working capital requirements such as fulfilling a large order by hiring more staff or buying raw materials. The loan applicant can use real estate security for acquiring the loan. Some of the assets that are acceptable to lenders are real estate units, land, houses, commercial building, industrial property and so on. An asset loan can be structured in different ways. It can either be a term loan or a revolving credit facility. Private funders willingly offer asset loans to borrowers because the risk involved in an asset backed loan is less. If the borrower defaults in a repayment, the asset can be auctioned and the loan value recovered. The interest rates on asset loans are usually higher compared to other loan products.


Business owners should only opt for an asset loan when they are confident of repaying the loan back with the repayment period. Asset loans have easy repayment terms and conditions which makes it easier for the borrower to repay the loan. If a business owner is not sure of which private fund to approach for the loan, a third party loan provider can be of help. They can help in suggesting the structure of the loan, negotiating with the loan provider on the interest rate and other terms and conditions and help in filling and submitting the documents. Loan consultants act as a one stop shop for various loan products. They are experienced in securing loan for borrowers and do it with minimal effort.


What have we learnt?


An asset loan is a good option for business owners in need of urgent cash. Without waiting for pending receivables or expected funds a business owner should opt for an asset loan if there is need of cash. There is always an option to pre-pay the loan if expected funds are realized sooner. Cash Flow deficit can severely impair business operations, therefore leveraging the equity of the asset can be a good option.