Asset based lending or leasing refers to taking out a loan to buy or lease assets which your company needs. It provides a secure and quick way to get a loan to cover essential assets which your business requires to keep operating and growing.
Asset lending is when money is borrowed to purchase essential assets for a business, such as office equipment, vehicles or even property. If the loan is not repaid then the lender has the right to seize the assets. This means it differs from a traditional bank loan and offers an alternative way to access vital assets your business needs.
Different types of asset based lending contracts mean that each one works slightly differently:
Advantages of asset lending:
Disadvantages of asset based lending:
Asset lending can help many businesses, but it’s important to be sure it’s right for your business model.
At MarketInvoice, our invoice discounting solutions provide an alternative, whereby cash flow comes from an advance against your outstanding customer invoices. We offer funding against select invoices, as and when you need – or you can also get regular funding through our whole ledger solution.
It’s quick and easy to access funds, which means you can get the cash flow you need to get on with business. With MarketInvoice, you get: