Asset Based Lending is one of those most popular types of financing when it comes to business acquisitions and mergers. Asset based financing has the ability to provide quick working capital to businesses who are in need of expanding or rebuilding cash fast because of their high growth, but may lack the initial profit to cover the upfront costs. Businesses obtain asset based lending by offering a percentage value of the company’s assets (Accounts Receivable, inventory, and equipment) to Prime Commercial Lending. Asset based lending is generally more flexible than traditional financing because the borrower is only required to pay interest on the amount of funding they draw, which can also make it more cost effective than traditional loans.
Read More on Prime Commercial Lending’s Mergers & Business Acquisitions Program highlights and details here.