Asset-Based Lending

If your company is in need of financing but it has been a challenge obtaining it from a traditional lender such as a bank, you might consider alternative lending sources, such as asset-based lenders. ABLs will lend against collateral, as opposed to lending based on your creditworthiness, which 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.