to acquiring the financing you need. Asset-Based-Financing is obtaining financing secured by an asset. Many corporations will use their existing inventory, accounts receivables, machinery and equipment as a form of collateral. If the loan is not paid back you will lose your secured property.
In many cases this form of financing is used as a last resort and is a strong indicator that a company is in desperate need of cash. Companies in need of asset-based financing generally have exhausted traditional means to raise capital or just needs immediate capital to fund a specific project. If your company is in need of this type of financing you should expect to pay much higher interest rates. Optimal Leasing can accommodate your needs under via a strategic funding relationship it has developed. Asset-based features:
- Interim bridge financing
- Accounts Receivable financing
- Factoring of receivables
- Debt is reported as liability on balance sheet
- Strict controls on cash flow and disbursement may be imposed