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How Asset-Based Lenders Applications Differ from Traditional Options

Fundera

In asset-based lending, that collateral you offer against your loan provides security that the lender will end up getting their money back in the end—even if things go south and you default on the loan. If you operate a manufacturing, wholesale, or even retail business, chances are you’ve got a stockpile of product inventory on hand.

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How Asset-Based Lenders Applications Differ from Traditional Options

Fundera

Many traditional lenders would require you to sign a personal guarantee or put up collateral—like a family home—to guarantee repayment in the event of a default. For invoice factoring, the lender actually purchases your outstanding invoices outright in exchange for a flat sum, as well as for a percentage of payments received.