Assett Based Lending
Assentt specializes in providing asset-based lending solutions for businesses seeking financial support. Providing a useful tool for businesses looking to access working capital or fund growth initiatives.
Asset-based lending refers to a loan that is secured by an asset. In other words, in asset-based lending, the loan granted by the lender is collateralized with an asset (or assets) of the borrower.
Account Receivable (AR)
Unlockthe Power of Account Receivables. Dive into streamlining Account Receivables to secure the required loan.
Inventory & Marketable Securities
Realise the true value of Inventory & Marketable Securities Expert Strategies for securing the lcapital for your business.
Property, Plant & Equipment (PP&E)
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Lenders commonly use the loan-to-value ratio to determine the amount of money they are willing to lend.
Asset Based Lending
It is less risky compared to other types of lending!
Asset-based lending is considered less risky compared to unsecured lending (a loan that is not backed by an asset or assets) and, therefore, results in a lower interest rate charged. In addition, the more liquid the asset, the less risky the loan is considered and the lower the interest rate demanded.
Asset Based Lending Amount
Asset-based lending commonly references the loan-to-value ratio. For example, a lender may state “the loan-to-value ratio for this asset-based loan is 80% of marketable securities.” It states that the lender would only be willing to provide a loan of up to 80% of the value of the marketable securities.
The loan-to-value ratio depends on the type of asset – lenders are generally willing to offer a higher loan-to-value ratio for more liquid assets. The loan-to-value ratio is calculated as follows:
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