Banks and commercial finance companies provide a wide range of asset-based loan products to help companies manage their working capital and long-term business growth needs. The terms “asset-based” or “asset backed” refers to the underlying security of the loan.

The amount lenders are willing to advance to a business against its assets, such as inventory, accounts receivable or equipment will vary according to a company’s overall financial position. However, lenders will look closely at how easy it is to liquidate inventory and receivables without severe discounting should the company fail to repay the loan as agreed.

The number of banks and financial service companies that provide asset-based loans to growing businesses is considerable. Visit the Funding Directory to identify Small Business Administration program lenders in your state. Compare lenders because rates vary.