Asset-Based Lines of Credit versus Bank Financing

Many companies actually prefer asset-based lines of credit to bank financing, even if they can qualify for a bank loan. Here are a few reasons why:

• Asset-based lines do not require an annual clean up of your account. In other words, unlike banks which generally require you to have a zero balance at least once every 12 months, our lines are open for you to use every day without worrying about zeroing out your balance.
  
  
• Asset-based lines require much less collateral than a bank will ask for. Our advance percentages are much higher than the bank offers, meaning you do not have to put up as much collateral to obtain the same amount of money.
  
  
• Asset-based lines are not subject to routine bank regulatory reviews. We do not have a board of directors that reviews your line each month or quarter and determines that you no longer fit the lending parameters.
  
  
• Asset-based lines do not key on personal credit histories or credit scores. Our lines are based on the collateral we connect to the transaction, not the credit score or history of the principals.
  
  
• Asset-based lines allow you to manage your cash flow how YOU want. You only pay for the amount you use, unlike many bank loans where you receive a lump sum at closing and make a fixed payment every month based on the original loan amount.