Greater Globe AllianceTM 

Asset Based Financing

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Asset Based Financing

Asset-based lending (ABL) is a type of business financing where a company uses its assets, such as, inventory, equipment, real estate, or certain other types of assets. These assets are their property, which technically means they own or have the authority to use as collateral in order to secure a loan or line of credit. What this collateral does is allows the lender to hold the asset just in case the borrow defaults on the loan repayment. Hence; since the lender is holding something of value to secure the loan, they do not have as much risk. Essentially what this does is allows the lender not to have to put as much weight on the borrows “ background”; credit and revenue.

The amount a business can borrow is primarily determined by the loan’s associated risks and but more so on the value of these asset(s) being pledged and the asset’s, (“ LOAN-T0-VALUE”) which generally focuses on the ability to sell ( “ market size”), how quickly they can liquidate and at what price that asset would sell in the open market if the borrower , rather than solely on its cash flow or credit history. 

 

How it Works

  • Collateral is Key: A lender assesses the value of your company's assets (e.g., inventory, invoices, machinery, land, securities’; stocks, bonds, debentures) to determine the loan amount.

  • Borrowing Base: The loan amount (borrowing base) fluctuates with the value of eligible assets, often allowing for draws on a revolving line of credit.

  • Advance Rates: Lenders typically advance a percentage of the asset's value but no more than 75-90% of receivables).  

Common Collateral Types

  • Accounts Receivable (invoices)

  • Inventory

  • Machinery & Equipment

  • Real Estate

  • Intellectual Property (subject to types) 

  • Stocks and Bonds

  • Certain types of insurance

  • Exiting Buy / sell offset agreements  or invoicing

  • Other types assets owned can be considered

  • Crypto Currencies 

 

Pros

  • Pros: Easier qualification than cash flow loans. Quick approval and access to your capital. Flexible use of funds.
  • Considering the lender’s risk of losing the monies lent, theses types of loans usually have the lower interest rates and the most favorable terms. In certain cases.
  • In many cases higher capital amounts or request

Used for:

  • For businesses with strong assets but inconsistent cash flow.
  • When very high amounts of capital are requested
  • To fund growth, buyouts, or managing seasonal working capital.
  • When traditional bank loans aren't accessible. 

Greater Globe Alliance; GGA and / or lenders or lending syndicate offer’s many types of asset-based loan products, where the borrowing business can use their assets to get loan approval easier.

 

Greater Globe Alliance and its lenders have the most flexibility, where we can offer specialized loan structures or give terms based on the borrower’s needs quickly and effectively to get the capital in your firm’s hands so you can focus on reaching your next level goals. Depending on the size and type of asset being provided Greater Globe Alliance and its lender affiliates provide the most competitive market offers because we also offer monetization structures (“ for higher amounts or large assets values”) to give our clients the largest competitive advantage ever. Connect with our team to help you determine the best options available and how we can help your business have the most capital possible.

 

Will not affect your business or personal credit score

Join us, and let's build a great relationship to help your business always have access to capital fast and easy to you can focus on taking your business to the next level.