How is asset based lending different from traditional bank financing?

Asset based lending focuses first on the quality and performance of the underlying collateral, and then on the borrower’s financial condition, ownership/management, and overall circumstances. Because asset based lending is not regulated in the same way as traditional bank lending, we can provide more creative and more flexible solutions in situations that might be viewed as too risky for a bank. Our objective with every client is to craft the right solution for its needs while encouraging the company’s growth and prosperity.

What is asset based lending?

With an asset-based loan, a company’s assets such as eligible accounts receivable, inventory or equipment secure the loan proceeds. Asset based lending offers a viable alternative source of capital for business owners who are unable to obtain traditional bank financing for their companies.

What is the difference between accounts receivable financing and factoring?

Many business owners equate accounts receivable financing with factoring, however, there are some significant differences. Factoring is the discounted sale of accounts receivable. With factoring, the factor purchases one or more invoices that have been sent to the company’s customer. In contrast, asset based lending advances a percentage of each eligible account receivable, thus allowing business owners to maintain ownership and control of their accounts receivable and their customer relationships.

Who can benefit from asset based lending?

Manufacturers, wholesalers, distributors and service providers all turn to asset based lending for an equally diverse range of financing needs. Our clients include start-ups (one to three years in operation) seeking financing for business growth; companies whose borrowing needs are greater than what their banks can provide; and established companies that have encountered financial difficulties. Companies that want to expand their product lines, upgrade equipment and grow their revenues also turn to us for the financing they need.

Why should I (or my client) choose Templar Business Credit over other asset-based lenders?

There are significant advantages in working with Templar over other financing sources, including:

  • You will be dealing with a principal and decision maker from day one
  • We focus on developing our relationship with you
  • We provide creative, flexible lending solutions
  • NO financial covenants, not ever
  • We work fast; typically funding is within thirty days of our first meeting
  • Our lending terms are clear and uncomplicated without hidden fees

Will I eventually be able to qualify for a traditional bank loan?

The vast majority of our clients have gone on to achieve financial stability and return to bank financing. In fact, this is our primary objective with each client that comes to us. When our clients eventually succeed in obtaining traditional bank financing, we consider that we have fulfilled our purpose successfully.