Asset Based Loans
Harness the value of your assets to get funding for business growth and operations.
What are Asset Based Loans?
Asset-based finance is a powerful tool that allows businesses to leverage their assets to access much-needed capital. At Dark Horse Financial, we specialise in providing tailored asset-based loan solutions that can help you manage business cash flow, expand operations, and invest in new opportunities.
With asset based commercial loans, you can use any tangible asset to secure financing, including:
- Invoices or Accounts Receivable
- Business Plant and Equipment
- Residential & Commercial Real Estate
- Vehicles
- Inventory
Quick Enquiry!
Why Your Business May Need Asset Based Financing
Why Your Business May Need Asset Based Financing
Asset based finance is ideal for businesses with valuable assets and high capital demands. Whether your company experiences seasonal fluctuations, requires funding for growth, or needs to manage day-to-day expenses, asset based loans provide the flexibility to access funds when you need them most.
Purchase Assets Without Having to Pay Upfront
One of the main advantages of asset based finance is the ability to acquire new assets without paying the full amount upfront. This means you can purchase equipment, vehicles, or property and spread the cost over time, improving cash flow and preserving working capital. It’s a smart solution for businesses looking to grow without overextending their cash position.
Types of Asset Based Loans
At Dark Horse Financial, we offer a range of asset based lending options to suit your specific needs, including:
Invoice or Debtor Financing
Borrow against outstanding invoices to improve cash flow without waiting for customer payments.
Equipment Financing
Acquire new machinery or equipment by using the asset itself as security, without large upfront costs.
Finance Lease
Lease an asset from a lender for most of its useful life, with the option to purchase at the end of the term.
Operating Lease
Rent assets for shorter periods without taking on ownership, perfect for assets that need regular updates.
Hire Purchase
Buy assets over time with regular payments, gaining full ownership after the final payment is made.
Real Estate Asset-Based Loans
Use commercial real estate as security to secure larger loans for expansion or other significant investments.
Purchase Order Financing
Finance large orders from suppliers, ensuring you have the goods needed to meet customer demand.
Second Mortgage
Tap into the equity of a property already under a first mortgage to secure additional funding.
Why Choose Dark Horse Financial for Asset-Based Finance?
Expert Guidance and Customised Solutions
Our team of financial experts will work closely with you to assess your assets, understand your goals, and tailor a financing solution that fits your situation.
Competitive Rates and Flexible Terms
Whether you need short-term financing to manage cash flow or long-term funding for expansion, we can help you secure the best rates and terms to help you achieve your goals.
Wide Network of Lenders
We have a wide network of lenders, from banks to non-bank lending entities. We can help you get the best asset based lending private credit in Australia that meets your needs.
Streamlined Application Process
From initial consultation to loan approval and beyond, we can help you get a quick turnaround so you can access the funds you need without delay.
Asset Based Loans Rates
The rates for Australian asset based lending can vary depending on the lender and several factors, including
- Type of Asset
- Condition and Depreciation of the Asset
- The Property’s Liquidity
- Loan-to-Value Ratio of the Asset
- Economic and Market Conditions
- …and more.
When you work with us, we’ll make sure to help you secure the lowest rates for your loan.
How do Asset Based Loans Work?
- Reach out to us for a free consultation. We’ll discuss your business needs and explore your financing options.
- Our team will help you evaluate your assets to determine their value and suitability for asset-based financing.
- Complete the application process with our guidance, providing the necessary documentation and details about your assets.
- Once your asset undergoes valuation and application is approved, receive your funds quickly, allowing you to address your business needs immediately.
Leverage Your Assets to Grow Your Business
Why let valuable assets sit idle when they could be working for you? With asset based business loans and asset based home loans, you can unlock the value of your property to access the capital needed to grow, manage cash flow, or invest in new opportunities.
Reach out to us today to learn more about how asset-based finance can benefit your business.
FAQs about Asset-Based Finance
Unlike traditional bank loans, many asset backed loan solutions are available to applicants with tax debt or who might not qualify for a bank loan for some other reason. There are even asset based finance solutions for those with bad credit. This makes it an option for businesses that may not qualify for a traditional loan due to a lack of credit history or inconsistent cash flow.
Asset-based finance offers several benefits, including quicker access to funds, flexible terms, and the ability to leverage existing assets without needing to provide additional security. It is also useful for managing cash flow, especially for businesses with seasonal fluctuations or high capital requirements.
While asset-based finance provides quick access to capital, there are risks, such as the possibility of losing the asset if the loan is not repaid. Additionally, the borrowing limit is often directly tied to the value of the assets, which can impact the amount available for funding.
The amount you can borrow with an asset-based loan typically depends on the value and type of assets being used as security. Lenders usually advance a percentage of the asset’s value, which can range from 50% to 100% of the security value depending on the asset type and lender’s assessment.
Yes, funds obtained through asset-based finance can be used for a variety of business purposes, such as purchasing inventory, funding growth initiatives, managing cash flow, or refinancing existing debt.
Approval times can vary depending on the lender and the complexity of the application, but asset-based loans typically have a faster approval process compared to traditional loans. Many businesses can receive approval and funding within 24 hours to a few days.
Start-ups can qualify for asset-based finance if they have assets that can be used as security or if they’re seeking to purchase assets for their business. The lending assessment typically relies on a cash flow forecast for servicing.
While an asset based business lending solution can be used for cash flow the primary difference between cash flow and asset-based business lending lies in how the lender assesses the loan. With unsecured cash flow lending, lenders base their credit assessment on turnover through the business bank account and director credit score. Meanwhile, in asset-based lending, because of the security being offered, less or no emphasis is placed on the director’s credit score and the loan amount offered is related to the asset’s value.
Private credit asset-based finance refers to loans provided by non-bank lenders (such as private or alternative lenders) that are secured by assets. In addition to property security, private lenders could offer loans backed by assets like vehicles, boats or anything of value. Private credit asset-based finance offers businesses an alternative to bank loans, often with more flexible terms or faster approval processes.
