How Asset-Based Lending Works

Your step-by-step guide to securing asset-based funding

The Asset-Based Lending Process

1. Initial Assessment

The process begins with an evaluation of your business assets. Lenders will assess:

  • Quality and value of your assets
  • Current financial position
  • Business performance history
  • Future growth potential

2. Asset Valuation

Professional valuers will determine the true worth of your assets:

  • Detailed inventory assessment
  • Equipment and machinery valuation
  • Property appraisal (if applicable)
  • Accounts receivable review

3. Facility Structure

Based on the valuation, lenders will determine:

  • Maximum loan amount
  • Interest rates and terms
  • Repayment schedule
  • Monitoring requirements

4. Ongoing Management

Once approved, the facility requires:

  • Regular asset reporting
  • Periodic valuations
  • Compliance monitoring
  • Facility adjustments as needed

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