Asset-Based
Lending Checklist

Asset-Based
Lending Checklist

Asset-Based Lending allows businesses to use untapped assets – like machinery, property, receivables (such as invoices) and Intellectual Property (IP) – as security against lending.
 
This checklist could help you avoid common mistakes and help you decide whether Asset-Based Lending suits your business before you apply.

<p>Asset-Based Lending allows businesses to use untapped assets – like machinery, property, receivables (such as invoices) and Intellectual Property (IP) – as security against lending.<br />
 <br />
This checklist could help you avoid common mistakes and help you decide whether Asset-Based Lending suits your business before you apply.</p>

Asset-Based Lending allows businesses to use untapped assets – like machinery, property, receivables (such as invoices) and Intellectual Property (IP) – as security against lending.
 
This checklist could help you avoid common mistakes and help you decide whether Asset-Based Lending suits your business before you apply.

Please note

This checklist is not part of an application process for Asset-Based Lending. However, we hope it gives you an idea of what is involved and what you need to do to prepare for Asset-Based Lending. Some providers may ask for more or less information about your business and the finance you need than what is set out below. This will change depending on individuals and the funding involved.

STAGE 1: Understanding Asset-Based Lending

Asset-Based Lending is a type of Asset-Based Finance, like Invoice Finance. You can use assets including stock, equipment, property and machinery as security against lending.
The value of your assets will impact the size of the loan you receive. Do you know how much your assets are worth?
You may not be able to use an asset that you are already using as security for another form of finance.
Asset-Based Lending is flexible and quick but there are risks involved, particularly if you default on repayments.

STAGE 2: Asset-Based Lending suitability

Asset-Based Lenders usually only offer facilities to established businesses with a trading history.
Can you prove your ability to repay your loan? Your accounts and financial statements need to reflect this.

STAGE 3: Understand the Asset-Based Loan

Do you know which aAssets you’re going to use for security? Does the borrowing period suite your business’ needs?
What’s the interest rate set out by the Asset-Based Lender? How much will it cost your business in total? Are there any charges for early repayment?
Do you know how you’ll use the loan? How will your business benefit? Have you forecast the impact of the loan on your business?

STAGE 4: Preparing your business for Asset-Based Lending

The Asset-Based Lender will usually look at your accounts and financial statements when assessing your eligibility. Due Diligence is also likely.

What's your next step?

Could Asset-Based Lending help your business grow?

Use our Finance Finder to see whether Asset-Based Lending could be suitable for your business in six simple steps.