Asset Based Loans: Using Collateral for Online Business Loans

Fast and Easy Funds has several online business loan options: cash advances, easy term loans, and asset based loans. Each online business loan has different advantages for a variety of companies, but no company can benefit from all the online loans we offer. Collateral for online business loans works only for a specific business type.

Before we determine if your business can benefit from an asset based loan, let’s be sure to define it.

Asset based loans refer to any loan that is secured by an asset. If the loan is not repaid per the agreed upon terms, then the online business lender will take possession of the collateral for online business loan.

If you don’t pay, the company’s physical assets will be transferred to the lender.

Who – Companies that own a lot of collateral for online business loans are best set up to benefit from asset based loans. Usually, these are companies that create products and deliver services in the real world. For example, a digital marketing company would not have enough collateral for online business loans to benefit from the loan.

When – Companies that are in desperate need of capital injection because of some unforeseen financial hurdle. Not all hurdles are negative. Your business could decide to secure an asset based loan to foster growth!

How – This is where Fast and Easy Funds can help. We are a trusted online business lender with years of experience in the industry. Simply contact a business loan specialist at Fast and Easy Funds and we will take care of the rest.

The Top 5 Rules for Startups

Mark Cuban is one of Americas most iconic entrepreneurs. He is a famous investor, television personality, and owner of the Dallas Mavericks, Landmark Theatres, and Magnolia Pictures.  Many entrepreneurs look to Mark Cuban for advice and guidance on starting and running a successful business.

Fast and Easy Funds chose the top 5 most important rules for startups we think will help you with your very own business:

  1. Do not start a business unless you are completely invested in it. If your heart is not in it, do not waste your time. If you have an exit strategy, your heart is not in it.
  2. Be intentional with your hiring. Your team should be diverse in backgrounds and perspective, but should also agree on the core values of your company.
  3. Keep your office open. Cramping employees into cubicles and shutting everyone off from each other hinders morale and productivity. According to Cuban, “Open offices keep everyone in tune with what is going on and keeps the energy up.”
  4. Sales cure all. Cuban says regardless of a company’s issues, if they can generate sales they will be successful.
  5. Make the job fun for your employees. Investing time and energy in your work is important, but one of the top rules for startups is to monitor the stress and accomplishments of your employees. If stress levels are too high, modify their work. If the accomplishments are consistent, reward them.

As Cuban says, “It comes down to finding something you love to do and then just trying to be great at it.”

Are Online Lenders Banks or Not?

The question that is perplexing loan regulators and business owners as of late is: are online lenders banks? More importantly, are they shadow banks? Are they considered to be institutions that have the same power as a bank but without the same responsibilities?

The difference between a bank and an online lender is simple: online lenders are not tethered by certain restrictions and they are also not covered in case of emergency (think bail outs and tax exemptions).

Another difference between traditional banks and online lenders is how they evaluate risk. There are far more requirements for small businesses to even be considered for a loan through a bank, whereas online lenders cut down on costs and can factor in more risk when awarding loans to business owners.

The Online Lenders Alliance has began using its clout to bring together alternative lenders to agree on a certain set of rules for online lenders. As the federal government begins taking online lenders more seriously, lenders like Fast and Easy Funds know that it is up to them to show their good faith so that they are not weeded out with the bad lenders surfacing online.

Fast And Easy Funds is committed to being the best online lender for small businesses, offering the best cash advances, easy term loans, and asset based lending structures available.

Alternative lenders have been able to provide American businesses with loans precisely because they are not banks. Traditional lenders have become a bureaucracy that created online lenders in order to bring the small business owner back to the forefront of American industry, and recreate the American Dream.

Asset Based Lending Prove Businesses Are Growing

What is asset based lending? –  It is the act of receiving online business loans by using your current business assets as collateral for the loan itself.

If businesses are using asset based lending as a financial solution, it could indicate that businesses in the U.S. are growing. The logic is that the business must have assets to use as collateral to receive the loan and if a business owns enough assets to receive loans, then they are inherently growing.

Jeremy Harrison, Senior VP & Regional Growth Head at Bank of America comment on the growing trend of asset based lending in Europe and its slow and steady rise in the U.S. at the Receivables Finance International convention in March.

Harrison said that he believes that it’s taking Americans longer to utilize this lending option because there is still not enough awareness of the option itself.

Even though some businesses are not taking advantage of asset based lending when considering online business loans, the fact that so many are in a position to receive these loans would be a great indicator that businesses in the U.S. are growing.

How can asset based lending help my business grow?

The next step is to ask whether or not your business can benefit from these loans. Manufacturing, distribution and service oriented companies benefit from asset based lending because they are in a position to take full advantage of the loan structure.

The most assets on hand the higher the loan and because these industries often experience seasonal cash flow, this type of lending can create a much needed bridge between high yielding seasons.

Big Banks Are Scared of Competing with Online Lenders

Wells Fargo has done the unprecedented and implemented the first ever, online small business loan venture – something that has never been attempted by any major bank until now. Large banking institutions have been notoriously uninvolved in the online small business loan market, and to say this is a monumental moment in the loan industry would be an understatement. Easy business financing for small businesses has never been a priority for big banks, so the obvious question is why now?

Speculation might lead to the conclusion that big banks are starting to notice that online small business loan companies have become not just a viable option, but the preferred option for small business owners. Why? Put simply, online business loan companies have always promised easy business financing in terms of merchant cash advances, asset based lending and easy term loans and credit scores are not treated as an eliminating factor as compared to big banks.

Online small business loan professionals took the market originally because big banks did not want to risk financing small business. Now that companies like Fast and Easy Funds have proven that these loans are viable, big banks are attempting to take the market. It will take a long time before the market changes completely, but there’s one thing for certain: banks have seen that providing easy business financing for small businesses online is not just an option, but the new standard for lending services.

Asset Based Lending is the Solution for Businesses with Bad Credit

Almost every business that has ever existed has taken a loan out at some point. Tesla, Microsoft, even Apple computers, no business is immune to fluctuating markets or business opportunities that require quick cash. If your business has experienced a loss in sales or has defaulted on previous loans, the issue then becomes how you can get a loan with bad credit? The solution for your growing business may be asset based lending.

Asset Based Lending

Standard business loans from banks come with aggressive interest rates and any asset based lending usually requires 40% to 50% inventory in advance. This strategy works for big banks but often leaves small to medium sized business owners with tight restrictions and a cash flow that can be more trouble than its worth. Asset based lending is a solution offered by the financial professionals at Fast and Easy Funds.

Business loans are meant to providing breathing room and potential for growth to the companies that receive them. The Asset based lending structure at Fast and Easy Funds is a method of taking advantage of what you already have. Using your assets as collateral, loans are paid to your business that will provide the freedom they already need.

These loans are especially well suited for companies with a lot of assets. Typically, asset based lending is utilized by companies in the manufacturing, service or distribution industries because of the vast and high quality assets they possess. But if your business does not fall into any of those categories do not count yourself out. Loans can be awarded for vehicles and real estate.

Visit Fast and Easy Funds to find out more and take your freedom back!

Indications It’s Time to Expand your Business Using Asset Based Lending

When business is going well it is natural to start thinking about expanding, but it is also natural that you may be feeling skeptical. There are many factors that go into growing a business and financing is arguably the most important. A great way to get extra finances to grow your company is through asset based lending.  Asset based lending is a loan secured by inventory as collateral, which is perfect for high growth companies. Asset based loans will continue to grow as your company’s receivables and inventory grows.

Before you make a commitment to expanding your business you should make sure that your company is truly ready to expand. Here is a list of indications that it is time to expand your business using asset based lending from Fast and Easy Funds.

  1. Your business has been profitable consistently for a few years.

 

  1. The industry or market of your business is growing.

 

  1. You have steady positive cash flow.

 

  1. Your company seems to be running out of room.

 

  1. You have more business that your company can manage.

 

  1. You have returning customers that are loyal.

 

  1. You have strong team of employees that can handle extra work that comes with growth.

 

  1. You can see that your product or service is in demand.

 

3 Advantages to Asset Based Lending

Asset based loans have gained much popularity in the past years. They offer a number of advantages that you can expect from similar products, such as a line of credit. However, qualifying for an asset based loan is much easier through Fast and Easy Funds. Below, are the 4 most important benefits of asset based loans.

Easy to get. Asset Based Lending is easier to qualify for than a business loan from a bank or line of credit. Your business needs to have a short track record of profitability and reasonable financial controls. You also need the assets that can be leveraged.  With a simple application, you can get a loan fast with Fast and Easy – hence the name.

Improved Liquidity. The most important benefit that your company gets from using asset based financing, is improved liquidity. Asset based lending can provide you with financial stability and predictable cash flow. This benefit can help stabilize operations for companies that are growing rapidly, have tight cash flows, or have seasonal revenues.  It is perfect for high growth companies that do not want their lines of credit capped by a traditional lender. Asset based credit lines continue growing as your receivables and/or inventory levels rise.

More Flexible. There are few restrictions when it comes to asset based lending. As long as it serves your business purpose. The financing line itself is tied to the value of your accounts receivables and other collateral. As a result, the credit line can increase as your sales grow. With Fast and Easy, you can get Term sheets within a matter of days.

Cash flow can make or break a business. Don’t fall short this year. Look into the asset based lending program at Fast and Easy for your business needs.

Contractors ‘Build’ Their Business with Asset Based Lending

As the weather gets warmer, construction projects seem to spring up one after another. Housing developments, retail outlets, restaurant strips and shopping malls have become pervasive in America. All this construction is good news for contractors, but oftentimes, they do not have the working capital to bid on or complete big projects. If you are a contractor that needs working capital, Fast and Easy Funds suggests an asset based loan.

Construction projects cost a lot for contractors. Payroll, new hires and supplies must be paid for, and often, vendors need payment well in advance. Sought projects can become burdensome for many construction companies once the costs start rolling in; traditional lenders and banks are not always the solution either. They require a lengthy application process and a lot of red tape. That’s why Fast and Easy offers asset-based lending for contractors.

Our asset-based lending program is perfect for contractors who have valuable machinery or equipment. Use these assets as a kind of collateral, and obtain the working capital your construction company needs. We offer the highest inventory advanced rates in the industry and we commonly lend on assets like machinery or equipment (which is perfect for contractors). Enjoy low annual interest rates, starting at 4% per annum.

With asset-based lending from Fast and Easy Funds, you can “build” your contracting or construction business from the ground up! To apply for an asset-based loan or to learn more, contact Fast and Easy Funds today!

3 Ways to Finance an Import Business

Starting an import business has a lot of attractive benefits: it can be very profitable and relatively simple once the process is streamlined. Fast and Easy Funds knows that getting started is half that battle. What products should you buy? Where will you sell your goods? And perhaps most importantly, where do you get the funding to start? It can be tough to get a traditional loan for an import business, but do not worry, there are other funding options.

An accounts receivable line of credit may be the answer to your funding question. This is a great option if you are waiting on payment from customers or vendors. Accounts receivable loans from Fast and Easy, allow you to borrow 85% to 90% of your accounts receivable lines of credit that are less than 90 days old.

If you do not have much in accounts receivables, but you have a lot in inventory laying around, asset-based lending is a better financing option for you. It will allow you to use your inventory to buy goods that are more desirable to your customer base. Fast and Easy Funds offers aggressive asset-based advances.

If you have a large purchase order from a website or vendor you cannot fill, a purchase order loan is yet another option to finance your import business. Purchase order financing can help you fulfill orders that you cannot complete on your own.

An import business may take a bit of work to get off the ground, but once it is properly financed, expect big profits! Call Fast and Easy Funds today for all your working capital needs!