Matthew Ledvina

In today’s competitive business environment, achieving constant growth is imperative for achieving long-term success. However, one of the basic requirements for magnifying and maintaining business operations is the arrangement of additional capital. The most common method that businesses use to arrange money for themselves is a loan. Typically, loan providers charge a fee from lenders that depends on the loan amount and the time within which the loan is to be repaid. Moreover, there are different loans available for firms such as SBA loans, medium-term business loans, and small-term business loans. Asset-Based Loans It has been a couple of years since asset-based loans have become a popular option for financing businesses. In fact, the recent years have witnessed a great upsurge in the demand for asset-based loans and many businesses now prefer using asset-based loans to finance themselves. The main attraction of asset-based loans is that the loan amount is secured ...

Every business needs to borrow money at different times in order to support their growth and operations. While there are various types of loans available specifically for businesses, the asset-based loans (ABLs) have become a more attractive option. Matthew Ledvina is a managing director of a venture capital firm headquartered in London, which provides asset-based loans to firm throughout the globe. Mr Ledvina underlines the importance of asset-based loans in propelling the rapid growth of companies. What is Asset-Based Loan? Unlike many other typical business loans, an asset-backed loan is granted to a company on the basis of their current assets. To be exact, assets including inventory accounts receivable and machinery can act the collateral for the loan. In addition, the loan amount issued to a company is dependent on the value of their collateral assets. Acting as a revolving line of credit, the loans backed by assets spawns various advantages like using unpaid inv...

In recent years, a new type of loan emerged as a rock-solid option for businesses to finance themselves known as asset-based lending. The loan sanctioned to a company within asset-based lending is secured against the assets of the company. In general, assets such as account receivables, inventories, machines, property, equipment, etc. are accepted as collateral. There are several benefits of choosing asset-backed lending over other financing methods with some of them as follows: ·         Fast Processing Unlike many other conventional loans and financing methods, asset-based lending requires significantly less amount of time for its execution. Consequently, businesses that need immediate capital for meeting their expenses or for any other purpose can get loans using their assets. ·         Low-Interest Rates Another major perk that businesses enjoy by opting for asset-based lending is the low-in...