Benefits of working with Crédito Real USA Business Capital.
What is asset based lending?
Asset-based lending also referred to as ABL is a financial service where the lender gives working capital or term loans to the client based on the value of the company’s assets.
These assets can be real estate, equipment, inventory, or anything else of value owned by the company. ABL is faster than traditional business loans, has flexible terms and can offer higher funding amounts than traditional lines of credit. For businesses struggling with liquidity, asset based loans are one of the best financial options on the market.
ABL is best for businesses who:
- Need large amounts of funding
- Have collateral to leverage
- Have capped out traditional options
- Need funding faster than a bank or a loan for a short-term
What are the benefits of Asset Based Loans?
There are tons of benefits of Asset Based Loans, but here are some that our clients consistently share.
- Unlock capital tied up equity
- Increase your cash flow
- Access more capital than traditional financing can offer
- Improve your balance sheet
What industries use Asset Based Lending?
Asset based loans are a viable financial solution for almost any industry and work well for both small businesses and large. Asset based loans are most commonly used by business to business (b2b) industries, because these companies often have much more collateral than consumer serving industries. Here are some examples of industries we have done ABL deals with:
- Real estate
- Oil and Gas
- Distribution & logicistics
- Real estate development
- Financial services
What types of collateral can I use for an Asset Based Loan?
Asset bands loans can harness a number of types of collateral to provide cash flow. At Crédito Real USA Business Capital we primarily use the following types of collateral:
Business owners are often sitting on valuable inventory, without any capacity to collateralize the asset for cash flow. Asset based loans help small businesses harness this in the form of an Asset-based Loan. When applying, an Asset Based lender will assess the value of the inventory and in the case of a default sell it to recover the loan. Loans based on inventory have variable advance rates that depend on factoring like location and type of storage, how easy it is to resell, and the type of goods. Most companies will also be required to have an inventory system for managing inventory and keeping track of the assets at all times.
How does the Asset Based Loan process work?
The application process to apply for an Asset Based Loan is paperwork intensive and requires a business owner to have all of his/her financial information organized. Outside of the standard documentation an Asset Based Loan is going to require a detailed asset list so a lender can understand the collateral that’s available to them.
Complete our asset based loan application which will provide us information about you and your business.
After your application has been approved, identify potential collateral like real estate, equipment, and inventory.
Crédito Real USA Business Capital will review the full and create a structure that meets your needs.
Once the loan is approved, and final paperwork is signed, funding will be transferred.
What documents are needed to apply for an Asset-Based Loan from Crédito Real USA?
At Credito Real we typically ask for the following when applying for an Asset Based Loan:
- A valid photo-ID
- 6 months of bank statements of all accounts used for your business activities.
- Our Credit application
- Most recent 3 years of tax returns for personal / business
- Collateral Description
- 3rd Party Appraisals (if available)
- Business Financial Statements
What factors determine rate and approval?
- Property value based on recent appraisal
- The quality and size of your clients.
- Previous payment history with your clients
- The frequency at which your inventory churns
- The profitability of your business
- The age and quality of your machinery and equipment
- Your business and personal credit score
Here's what some of our customers are saying.
Visit Us in San Antonio, Texas
Credito Real USA – Business Capital
103 Biltmore Street, Suite 210
San Antonio, TX 78213, United States
Crédito Real USA Business Capital’s San Antonio location can be found on the north west corner of the intersection between Loop 410 and Blanco Road. To access our location you need to be heading west on the access road of 410, past Blanco and will turn on Biltmore Road. You will see our building on the left and once you arrive, head inside and immediately upstairs to find our office. You will know if you are in the right area if you see Guajillo’s The Shortcut to Mexico and Kobe Steakhouse.
How long does the application process take for asset based lending?
The length of the application process for an asset-based loan varies depending on the type of asset. For example borrowing against accounts receivables is less time intensive then borrowing against real estate or equipment.
Is collateral required for asset-based lending?
Yes, asset-based lending requires the company to provide collateral like real estate, inventory, or equipment to qualify for the loan.
How is an asset based loan different from invoice factoring?
Both asset based lending and invoice factoring provide viable tools for businesses to alleviate cash flow challenges. Where asset based loans determine approvals and deal size based on the value of hard assets like land, equipment, or inventory, invoice factoring basis approvals on the payor of an invoice and the value of the invoice. With invoice factoring, businesses can access capital even if their credit history is sub par, as long as the client paying the invoice has strong credit. Factoring deals typically only last 30-90 days and approvals and funding can be as fast as a day or two. With ABL, the timeline is still faster than a traditional loan, but depends on how long it takes to accurately value the asset being leveraged.
Resources to help your business thrive.
Find out about the ways you can improve your business, grow, and access the funding you need.