UK
IRE
AU
CA
US
ZA
NG
Who will Swoop in and grab the prize?
Swoop are proud to be sponsoring the Asset Based Lender category at this year’s Insider Magazine Dealmakers Awards being held on 13thSeptember in Birmingham. The shortlisted companies are:
Royal Bank of Scotland
Shawbrook Bank
HSBC
PNC
Lloyds Bank
ABN AMRO
Leumi ABL
What is Asset-Based Lending?
Asset-based lending is a business loan secured by collateral (assets). The asset-based loan, or line of credit, is secured by inventory, accounts receivable, equipment and/or other balance-sheet assets.
Asset-based lending is also known as “commercial finance” or “asset finance.”
How does it work?
Businesses usually take out loans to meet various cash flowneeds, for example, meeting payroll or building inventory. When a company cannot show that it can pay for a loan through its cash flows, the lender may decide to approve the loan based on the value of the entity’s assets. This form of business financing is referred to as asset-based lending.
Asset-based lending occurs when a loan is granted to a firm solely on the value of assets pledged as collateral. The terms and conditions of an asset-based loan depend on the type and value of assets offered as security to the lender. Lenders usually prefer highly liquid securities that can readily be converted to cash in situations where the borrower defaults on its payments. In general, the more liquid the pledged asset, the higher the loan-to-value ratio. In addition, loans that are granted under asset-based financing are never the full value of the assets pledged.
We deal with specialist providers who are able to look at refinancing existing assets or at low cost/low deposit options for purchases. Where this works it can be a winner as rates can be very low. If you’re interested in asset finance, you can reach our debt team here.
The Swoop platform is made up over 500+ funding providers who offer a wide range of funding solutions across loans, equity and grants.
Good luck to all the applicants, looking forward to seeing you on the night.
yet? Register here!