The 6 Best Asset-Based Lending Companies to Fund Your Business

Let’s face it. There are times in the life of every business when you face a cash flow problem that could threaten the survival or at least hamper the growth of your firm. In fact, cash flow problems are the largest contributor to business failure. A cash flow problem doesn’t mean your business isn’t making money, it simply means you have a temporary situation where you are forced to pay out more money than you have in the bank. That’s where asset-based lending companies can be your lifeline.

You might need a little cash to improve your business, but after you pay creditors and employees, you might find yourself a little short for funding these improvements. Or, you might have trouble collecting on your debts, which leaves you with a hole in your checking account. In an ideal world, you’ll always have enough cash flowing through your business to fund any endeavor, but that rarely happens. 

Instead, you should explore alternative funding options, such as asset-based lending. This concept is simple: you receive a business loan that’s backed by various assets as collateral. For example, your business might use its accounts receivable account (termed factoring) or the asset value of your property, plant, and equipment to secure the loan. This type of lending is one of the smartest ways to fund your business, and you can find a host of asset-based lending companies anxious to supply this type of loan. If you’re considering borrowing from one of these companies, we’ve made your life easier by ranking the very best asset-based lenders for you to see below.

Best asset-based lenders

1. Porter Capital

Porter Capital offers flexible finance solutions to businesses of all sizes. It has up to $25 million in lines of credit to dish out – and it provides funding approval in 24 hours or less. That’s already enough to pique any company’s interests, but there’s more.

What makes Porter Capital unique is its commitment to client relationships. When you apply for an asset-based loan, you’re put in touch with a dedicated account manager. You can talk to them whenever you want and get advice on things like repayment schedules or changes to your loan terms. It’s a far cry from what many competitors offer, which tend to be online-only services that use automated systems.

So, if you’re looking for asset-based lending with a more human touch (as well as low monthly rates of 0.75%), then give Porter Capital a try. It’s suitable for all kinds of businesses across the nation, and you never have to deal with hidden fees.

2. Northpoint Commercial Finance

If you need an asset-based lender who’ll respond quickly and be able to handle the entire application process within a day, then Northpoint Commercial Finance should be on your radar. It uses a very simple process with standard credit documentation to decide if your business is worthy of a loan.

The company is keen to create a collaborative relationship with all of its customers, meaning you get dedicated customer service as required. It’s a reputable place to go for asset-based lending, though some businesses may be put off by the lengthy transaction times – it may take up to 60 days to get your money.

Still, it comes in at second on our list, so check out Northpoint Commercial Finance to learn more.

3. Commercial Funding Inc.

Those of you looking for big business loans to fund new projects may be intrigued by Commercial Funding Inc. (CFI). Its service caters to B2B companies that have accounts receivable of $500,000 or more. You also must send invoices to your customers to qualify for the loan.

Apart from offering extremely large loan amounts with pleasing interest rates, CFI has a streamlined application process that makes gaining your money a lot easier than most. As long as you meet the parameters outlined on their website, you’ll be fine.

It won’t be an option that everyone goes for, but CFI is worth looking into if you tick the right boxes and are in dire need of a big loan.

4. Seacoast Business Funding

Seacoast Business Funding runs a very flexible ABL service for businesses across the country. It specializes in making your funds available when you need them, making it a fantastic choice for covering business expenses or paying staff with a short-term loan.

To be fair, it’s a fairly flawless process that’s easy to navigate and doesn’t take long to set up. You’ll also enjoy that this company provides scalable financing, meaning you can take out more money as your business grows and add it to the existing loan terms.

There’s a lot to like, so it’s worth reading more about Seacoast Business Funding in your spare time. It’s not in the top three because you can’t borrow as much money as some of the other companies allow.

5. Cerebro Capital

If you want to work with a company that delivers smart financing options with hardly any fees, then Cerebro might tick the right boxes. Asset-based lending is one of its many funding services for businesses, and it will accept all kinds of assets as collateral. From machinery/equipment all the way through to intellectual property, there are loads of ways to gain access to a loan.

We’ll be honest, Cerebro would be higher on our list if it weren’t for one thing: the company mainly caters to businesses looking to expand their services. Loans start at $2 million, so it’s hardly a company you can call when you need a loan to cover your monthly bills or fund a new marketing strategy.

That being said, if you do need to secure a lot of business funding, then it’s a worthy contender. Visit Cerebro Capital to see more or to make an initial loan application.

6. Viva Capital

Finally, you could opt for Viva Capital to obtain a secured loan against your business assets. Like all of the asset-based lending companies on this list, Viva lets you use any type of business collateral during your application.

It also stands out as one of the rare lenders that doesn’t require at least two years in business. For context, most of the other companies on this list will only approve your loan if you’ve been in operation for two years or more. Viva is happy if your company is merely a year old.

It’s one to consider, for sure, but the process of applying for and obtaining your loan from this provider can take a long time. If you’re inpatient, then it won’t be for you. If you can afford to wait, then feel free to check out Viva Capital for more details.

Conclusion

If you need to fund your business, one of these asset-based lending companies will be the perfect starting point. Review the list again and select a provider that meets your specific business needs.

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