If your company is in need of financing but it has been a challenge obtaining it from a traditional lender such as a bank, then you might consider alternative lending sources, such as asset-based lenders. Asset-based lending or ABLs will lend against collateral. Comparatively, other types of lenders lend based on your creditworthiness. As a result, this is what tends to make it difficult for start-ups and those with recent losses and cash flow difficulties from obtaining a bank loan.
I came across an interesting article in the Journal last week which detailed the benefits of asset-based lending, especially if it is difficult for you to quality for a bank loan.
Here’s a great article comparing traditional commercial bank financing to asset-based financing.
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