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Asset Based Loan

Asset based loan for higher amounts: Which are the best choice?

When businesses request funding for higher dollar amounts, they typically consider either an asset based loan or unsecured loan.   Which one is more likely to get the businesses a higher funding amount?  Which financing products should the business apply for?   Choose an asset based loan for higher amounts.

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What is considered a higher loan amount for a business loan request?  Requests over $50,000 are considered larger amounts.   When a request is over approximately $100,000, financials are often required.

For requests over $50,000 to $100,000 and more, it will be easier to qualify through asset based loan programs rather than unsecured programs.

A Business needs to have gross sales over $1,000,000  to be seriously considered for a $100,000 unsecured loan.    They should consider an asset based loan if their sales are less.

There are several asset based loans that businesses can consider.   In general, the most common types are those in which the lender will take a blanket lien on the business.   Traditional banks take a blanket lien most often.   The blanket lien means a lien on all furniture, fixtures and equipment.

Another type of asset based loan is when the company puts up equipment assets.    More asset based financing types include accounts receivables financing, and offering stocks, money market accounts, or  certificates of deposit.

As a result, when a business is requesting over $50,000, they should generally consider asset based loans.