At their core, asset backed loans, also referred to as asset based lending are business loans secured by a company’s collateral. Generally, accounts receivable (AR) and other assets like machinery/equipment, inventory and real estate can be used as collateral for an asset backed loan. An agreed percentage of the asset’s value is provided in credit to the firm by their chosen lender. This percentage will vary based on what sort of asset is being considered for the collateral to secure the loan. In the case of AR invoices, the company requesting the asset backed loan also hands over the accounting and collections duties for that invoice to their lender.
When compared with traditional credit and loan products, Bibby Financial Services (BFS) provides customized, collaborative funding solutions instead of faceless and inflexible credit with generic terms. With broad experience across many industries and countries, BFS can deliver financing solutions for fast-growing businesses that would be impossible for traditional bank-financed loan products, such as financing a business with foreign assets. BFS recognized the opportunities available to August Accessories as well as the quality of its major retail accounts and was able to provide a solution for their business. Through inventory financing and accounts receivable factoring, August Accessories gained access to working capital that ignited growth and the expansion of its apparel and accessory lines in a time of economic uncertainty.
By customizing funding solutions, BFS helps companies reduce debt and simplify funding by combining asset-based lending products in a way that makes sense for their business - such as a line of credit, an equipment loan and a term loan against real estate. This flexible funding allows companies to take advantage of supplier discounts, even out cash flow and finance growth.
Bibby Financial Services’ asset based lending (ABL) product is a fast, flexible way to finance your business based on your accounts receivable balances, inventory, machinery and equipment. Asset backed loans from BFS are a flexible and custom-tailored to any individual company’s needs and provides the funding needed to help businesses grow instead of limiting them. Contact us today to learn more about custom Asset Backed Loans from BFS for your business.