123ArticleOnline Logo
Welcome to 123ArticleOnline.com!
ALL >> Others >> View Article

Info: Avoid Scam On Asset Based Financing

Profile Picture
By Author: Shaw Capital Management and Financing
Total Articles: 16
Comment this article
Facebook ShareTwitter ShareGoogle+ ShareTwitter Share

Two types of asset based financing for your information to avoid factoring scams. For Working Capital. Shaw Capital Management and Financing offers asset based lending for companies that need to maximize their borrowing capacity using accounts receivable and inventory as collateral. Receivable based financing combined with inventory finance has become a useful tool for many undercapitalized businesses.
Shaw Capital Management and Financing evaluate a client's business assets as its primary focus to establish the borrowing base. The result is usually far greater borrowing power than can be achieved from a traditional cash flow banking approach due to our expertise in industry specialization.
Bank Financing. Shaw Capital Management and Financing offer higher advance rates due to our experience in receivable valuation. In the event where the client already has a bank line of credit, an Inter-creditor agreement is made between the bank and Shaw Capital Management and Financing where the receivables are assigned to Shaw Capital Management and Financing and therefore allows the client to borrow at higher advance rates.
...
... Due to the recession, many businesses have seen their credit rating dwindle and in most instances, the credit of small businesses is based off of the business owner's personal credit rating. Small businesses have not been the only businesses that have been affected by the recession and stricter lending standards however. Many large scale companies are getting rejecting for unsecured loans that they would have qualified for five to ten years ago.
After the markets started crashing a few years ago, most people thought that asset based lending and subprime loan companies would be put out of business forever. While subprime mortgage lending took a big hit, it has been found out that asset based lending for businesses is actually making a big comeback. With credit companies refusing to issue loans to companies that they may have leant to prior to the recession, businesses have had to find a way to obtain the financing that they need. Asset based lending companies have stepped in full force and are quickly growing in popularity.
Asset loans use a company's liquid assets to determine whether or not they are going to lend to them rather than using a credit score. Credit scores are still obtained but they are not the ultimate and definitive deciding factor with asset based lending. Liquid assets can be defined as the company's equipment, accounts receivable, restaurant assets and in some cases even real estate if it is owned by the business. The business enters into a contract that uses their assets as collateral in the event that they ever default on the loan. What used to be considered subprime lending is now becoming a very popular and widely used method of obtaining loans for business owners.
There are a few downfalls to pass around to asset based lending as well. The first major downfall is that if the business defaulted on the loan, then the lender has the right to seize physical assets and future payments that are due to the company depending on what asset is being held in collateral. Second, the interest rates are often above 10%, which is typically higher than standard lending rates. And last, the lending limits may be lower than traditional lending, as most asset based lending companies will only lend an average of 60% of the value of physical and hard assets and 80% of the value of future accounts receivables. By Vanessa Sweeney

Shaw Capital Management and Financing provide same-day-funding. We can help you meet your cashflow needs immediately without entering into a long term factoring relationship. The money you get for the freight bills we purchase is payment in full.
Shaw Capital Management and Financing offer a complete line of factoring services, purchase order funding, asset based financing, accounts receivable management, and other related financial services.
Shaw Capital Management and Financing offer funding for a wide range of industries and flexible funding requirements that most businesses can easily qualify for.
Based in Baltimore, Maryland. Importing into the tri-state area mostly from the far east such as China, Thailand, Taiwan and South Korea.

Total Views: 111Word Count: 674See All articles From Author

Add Comment

Others Articles

1. Discover Comfort And Convenience At Hamilton’s Queanbeyan Motel
Author: Hamilton's Queanbeyan Motel

2. The Psychology Behind New Year’s Resolutions: Turning Goals Into Reality
Author: ImPerfect

3. Accelerate Your Retail Success By Embracing Agile Technology Solutions
Author: Sparity

4. Polystyrene Microspheres 1μm: What You Should Be Aware Of?
Author: Alpha Nanotech

5. Black Caviar Rose: A Unique And Captivating Flower
Author: Nouman

6. What Is A Mossberg Forend And What Are Its Distinctive Features?
Author: Slade Street Tactical

7. Everything You Need To Know In The Complete Beginner's Guide To Digital Publishing
Author: tribotz

8. What Can You Expect From Affordable Pet Food?
Author: Pet Food Club

9. Rcm Trends 2025: Ai, Interoperability, & Value-based Care | Allzone
Author: Albert brown

10. Key Features To Look For In A Reliable Stud Bolt In India
Author: Delta Fitt INC

11. Is Upvc Weatherproof
Author: duroplast

12. How To Change Background Color: A Complete Guide For Designers And Marketers
Author: nancybrown

13. How To Set And Achieve Realistic Seo Goals
Author: Williams

14. Fun Ideas To Make Your Wedding Venue Unique
Author: jadebanquets

15. Choosing The Right Door Manufacturers For Your Home Or Office
Author: Abhinav

Login To Account
Login Email:
Password:
Forgot Password?
New User?
Sign Up Newsletter
Email Address: