Dan Cassel brings a wealth of experience in Assisting Self-Employed Borrowers beyond the realms of Conventional and Non Conventional Real Estate Lending, often facilitating the growth of various enterprises. This encompasses ventures in commercial real estate loans, equipment procurement, bolstering working capital for seasonal or burgeoning businesses, or leveraging sales invoices or government contracts to swiftly access funds.

Asset based lending stand as a distinctive form of business financing, backed by the tangible or financial assets of the enterprise. For instance, a business might opt for an asset based lending secured by its properties, industrial machinery, inventory, or receivables.

Businesses typically opt for these loans for two primary reasons:

Firstly, to address short-term cash flow challenges. For example, a company anticipating substantial payments from customers but facing immediate financial obligations might secure an asset based loan.

Secondly, to fuel growth and future investments when existing capital is tied up. For instance, a company newly acquiring a warehouse might secure an asset-based loan to purchase additional trucks for servicing. In such scenarios, where resources are constrained but growth potential is strong, asset-based loans provide the necessary funding.

In this scenario, the loan’s security lies in the underlying physical or financial assets of the company, such as buildings, industrial equipment, sections of inventory, or payments due in accounts receivable.

Businesses often seek asset based lending for two key reasons:

Firstly, to address short-term cash flow challenges. For instance, a company expecting substantial payments from customers but facing immediate financial obligations might opt for an asset-based loan.

Secondly, to fuel growth and future investments when existing capital is tied up. For example, a company freshly acquiring a warehouse might secure an asset-based loan to purchase several new trucks for servicing. Despite being in a strong position, their liquidity may be limited, making an asset-based loan instrumental in sustaining growth.

Conventional loans prioritize cash flow assessment followed by collateral evaluation. In contrast, asset-based commercial real estate loan programs emphasize collateral assessment prior to cash flow considerations. Relying on collateral for financing enables rapidly growing businesses to sustain the necessary liquidity to meet working capital needs.

This approach is particularly beneficial for companies experiencing stable growth or facing financial distress necessitating a recapitalization of their balance sheet. In most instances, restructuring existing term debt can lead to improved cash flow and heightened liquidity, fortifying the financial foundation of a robust business.

Numerous business owners favor asset based lending for various reasons, including:

• Utilizing business assets for working capital
• Unleashing tied-up equity in equipment and business assets
• Amplifying the line of credit to support expansion
• Borrowing against an asset-backed loan
• Enhancing the balance sheet through innovative payment structures
• Leveraging a wide array of equipment
• Availing competitive terms
• Capitalizing on Section 179, allowing businesses to deduct the cost of capital assets in the same fiscal year.