3 Reasons Why Asset-Based Lending Is Better Than Traditional Bank Loans

 

people discussing asset-based lending.

Asset-based lending is proving to be quite a popular option for businesses looking to grow and sustain in a competitive economic environment. They’ve emerged as a viable alternative to traditional bank loans, and many companies even prefer asset-based loans to conventional bank financing. So let’s examine why asset-based lending is better than bank loans.

Immediate Cash

Asset-based lending provides immediate cash for businesses looking to bolster their working capital and meet their ongoing cash flow needs. The cash can be used to purchase necessary materials to fulfill a sudden uptick in orders, meet urgent payroll requirements, or for other operational expenses.

Quick Process

A traditional bank’s lending process is lengthy and involves much paperwork compared to asset-based lending. In some cases, the procedure can take several months as the bank analyzes a borrower’s creditworthiness and the ability to repay. On the other hand, ABL is quick and efficient because it relies on the collateral instead of the borrower’s credit profile. 

two people in a discussion.

Financial Caveats

Fewer financial caveats are required of the borrower because ABL relies on the quality of the collateral instead of a borrower’s financial and operating performance. There are no strict rules or requirements that you need to adhere to compared to if you were borrowing from a traditional bank. The greater flexibility and the hassle-free process make asset-based lending the ideal financing choice for many businesses.

Get Asset-Based Financing in NY

If you’re looking for quick and reliable asset-based lending in New York, you’ve come to the right place. GCP Fund is an experienced asset-based lender that has helped various businesses with their financing needs.

Their experienced in-house underwriters eliminate the hassle of paperwork and provide accelerated financing solutions designed to meet every business's unique needs and requirements.

Visit their website today for more information, or contact them to learn more about their asset-based lending and other financing solutions.  

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