How Loeb Can Help you Leverage Your Machinery and Equipment To Unlock Working Capital Through Asset-Based Lending and Term Loans

Loeb is an asset-based lending company that has been helping manufacturers and financial institutions leverage their industrial equipment for more than 140 years, since 1880. We provide asset-based loans on machinery and equipment, so you can get the most out of your assets. We’re here to help you grow your business and reach your goals and we can tailor a loan solution to fit your needs.

Asset-based lending is a great way for manufacturers and financial institutions to get the most out of their equipment. By taking out a loan against the value of your machinery and equipment, you can free up working capital that can be used to grow your business.

We specialize in managing the industrial asset lifecycle through asset-based lending, and we have a wide range of experience working with all types of machinery and equipment. We understand the unique needs of manufacturers and financial institutions, and we can tailor a loan solution to fit your specific situation. Contact us today to learn more about our services and how we can help you grow your business.

Introduction to Asset Based Lending

Asset-based lending is a type of financing that allows companies to use their assets as collateral for a loan. This can be a valuable option for companies that may not qualify for traditional bank financing. Asset-based loans can be used for a variety of purposes, such as working capital, business expansion, or equipment purchases.

Loeb has been providing asset-based loans for over 25 years. We understand the unique needs of manufacturers and financial institutions, and we can tailor a loan solution to fit your specific situation.

How Does Asset-Based Lending Work?

Asset-based loans are typically secured by collateral, such as machinery, equipment, or receivables. The loan is based on the value of the collateral, not the creditworthiness of the borrower. This can make asset-based loans a good option for companies that may not be able to qualify for traditional bank financing.

Asset-based loans can be used for a variety of purposes, such as working capital, business expansion, or equipment purchases. The loan amount and terms will vary depending on the type and value of the collateral.

Loeb has a wide range of experience working with all types of machinery and equipment. We understand the unique needs of manufacturers and financial institutions, and we can tailor a loan solution to fit your specific situation.

In asset-based lending, the lender, Loeb, guarantees security for the assets. This security interest provides the lending basis for a loan. The lender sets the credit line’s maximum limits and the borrower requests cash as required if the loan complies with the predefined borrowing bases criteria. Its size increases and decreases with the asset base, and the amount borrowed can depend mainly on the size.

What Types of Companies Use Asset Based Loans?

Asset-based lending can be a good option for companies of all sizes that may not qualify for traditional bank financing. These loans can be used for a variety of purposes, such as working capital, business expansion, or equipment purchases.

Asset-based loans offer an excellent way to finance fast-growing businesses or businesses that are in distress. Companies that have assets attached to raw or finished product inventory are also suitable applicants for asset-backed loans. For example, a manufacturer that has to obtain raw materials, to begin with, and has to receive a payment within 30 days of production will experience a negative cash flow in the event of this change.

An Efficient Way to Borrow Money

Pledging machinery and equipment, accounts receivable, and inventory as collateral can be an efficient way to borrow money. Companies that have a high proportion of these types of assets on their balance sheet and generate revenue from the use or sale of these products are excellent candidates for an asset-based loan.

Because your asset is used as collateral, asset finance is a cost-effective way of ensuring maximum borrowing capability and satisfying your liquidity requirements. Our consulting approach helps you leverage assets in the best possible way for future success.

Types of Asset Based Lending

Asset-based lending comes in many different forms, depending on the needs of the borrower. Some common types of asset-based loans include:

Term Loans

These loans are typically used for working capital or business expansion. The loan is repaid over a set period of time, and the interest rate is fixed.

Equipment Line Of Credit (ELOC)

This type of loan is used to finance the purchase of new or used equipment. The loan is secured by the equipment, and the borrower can draw on the line of credit as needed.

Leaseback

This type of asset-based loan allows companies to use their existing machinery and equipment as collateral for a loan. The borrower leases the equipment back from the lender and makes payments over the term of the loan.

Revolving Line Of Credit

This type of loan provides the borrower with an asset-based line of credit that can be used for any business purpose. The line of credit is secured by the borrower’s assets, and the borrower can make withdrawals as needed.

Equipment Financing

This type of loan is used to purchase machinery or other types of equipment. The loan is typically repaid over a period of 2-5 years, and the interest rate is fixed.

Bridge Loans

This type of loan is used to “bridge” the gap between the time when a company incurs expenses and the time when it receives payment for its products or services. Bridge loans are typically short-term loans with high interest rates.

Factoring

This type of asset-based loan allows companies to sell their accounts receivable at a discount in order to obtain cash immediately. The lender pays the company for the invoices, and the company repays the lender over time as their accounts receivable balance declines.

Distressed Lending

Banks Do Not Lend to Distressed Borrowers

Loans to companies in financial distress are considered “non-performing loans” by banks. This means that the borrower has already missed one or more payments on the loan. Banks are required to set aside money to cover these loans, and as a result, they are very reluctant to lend to companies in financial distress.

Debtor In Possession Financing

This type of loan is available to companies that have filed for bankruptcy. The loan is used to finance the company’s operations during the bankruptcy process.

Asset Based Lending Is an Attractive Option for Distressed Borrowers

Asset-based lending is a much more attractive option for distressed borrowers. The reason is that asset-based lenders are not concerned with the borrower’s credit history. Instead, they focus on the value of the collateral. This makes asset-based lending an ideal option for companies in financial distress.

Workout Financing

This type of loan is for companies that are struggling to make payments on their existing debts. The loan is used to help the company restructure its debts and improve its financial situation.

How Asset-Based Lending Can Help Manufacturers And Financial Institutions

Asset-based lending can be a great option for manufacturers and financial institutions who want to get the most out of their machinery and equipment. By taking out a loan against the value of your assets, you can free up working capital that can be used to grow your business. Loeb has been helping companies leverage their assets for over 25 years, and we can tailor a loan solution to fit your needs.

The Benefits of Asset-Based Lending

The benefits of asset-based lending include:

• Increased flexibility – Asset-based loans are more flexible than traditional loans, and can be used for a variety of purposes, such as working capital, business expansion, or equipment purchases.
• Fast access to capital – Because asset-based loans are backed by collateral, they often have a faster approval time than traditional loans.
• No need for perfect credit – Asset-based lenders focus on the value of the collateral, not the borrower’s credit history. This makes asset-based lending an ideal option for companies with less-than-perfect credit.
• Competitive rates -Asset-based loans can have lower interest rates than other types of loans, such as unsecured business loans.
• Tax advantages – Interest paid on asset-based loans is tax-deductible.
• Unlocking working capital that can be used to grow your business – One of the main benefits of asset-based lending is that it can provide you with working capital that can be used to grow your business.
• Flexible repayment terms – Asset-based loans often have more flexible repayment terms than traditional loans, which can be helpful for companies who are tight on cash flow.
• Ability to borrow against the value of your assets – Asset-based loans allow you to borrow against the value of your assets, which can be a valuable source of funding for companies that may not qualify for traditional bank financing.
• 

Asset-Based Loans Are More Flexible Than Traditional Loans

Asset-based loans are more flexible than traditional loans and can be used for a variety of purposes, such as working capital, business expansion, or equipment purchases. Asset-based lending is often easier to qualify for than traditional bank financing because it is based on the value of your assets rather than your credit history. One of the main benefits of asset-based lending is that it can provide you with working capital that can be used to grow your business. Asset-based loans often have more flexible repayment terms than traditional loans, which can be helpful for companies that are tight on cash flow.

Manufacturers and financial institutions can use asset-based lending to unlock the value of their machinery and equipment. By taking out a loan against the value of their assets, they can free up working capital that can be used to grow their business. Asset-based loans are typically much easier to qualify for than traditional bank loans, making them a great option for companies that may not have the best credit history. In addition, asset-based loans often come with more flexible repayment terms, which can be helpful for companies who are tight on cash flow.

How Do I Get an Asset-Based Loan?

To get an asset-based loan, you will need to provide collateral in the form of your assets. The value of your assets will be used to determine the amount of the loan and the interest rate. Asset-based loans are typically repaid within 1-2 years, and the interest rate is variable. You can use asset-based lending to finance a variety of purposes, such as working capital, business expansion, or equipment purchases.

What Are The Risks of Asset Based Lending?

The main risk of asset-based lending is that you could lose your assets if you default on the loan. Because asset-based loans are secured by your assets, the lender has the right to seize your assets if you fail to make your loan payments. If you are considering asset-based lending, call us to discuss.

Loeb provides very flexible asset-based lending solutions so that you know your options and can protect yourself before you decide on which variation of asset-based loan is right for you.

Why Loeb Is The Best Choice for Asset-Based Lending

Loeb is the best choice for asset-based lending because:

• We have NO covenants!
• We can close in as little as 4 weeks.
• We fund deals of all sizes, from $1MM to $20MM.
• Because we’re active in appraisals and inventory management, we KNOW asset values.
• We have over 25 years of experience helping companies leverage their assets through asset-based lending.
• We offer flexible repayment terms and custom loan solutions.
• We have a team of experts who are ready to help you grow your business.

We Offer a Variety of Asset-Based Lending Solutions That Can Be Tailored to Fit Your Needs

• Machinery and equipment loans – We offer loans on machinery and equipment, so you can get the most out of your assets.
• Equipment Lines of Credit (ELOC) – We off lines of credit based on your machinery and equipment values.
• Sale Leasebacks – We can help you unlock the value of your equipment by purchasing it and leasing it back to you.
• Equipment purchase loans – We offer asset-based loans to help you purchase the equipment you need to grow your business.

Contact Loeb to Learn More About Asset-Based Lending Solutions

If you’re interested in learning more about how Loeb can help you unlock the value of your assets, contact us today. We have over 142 years of experience helping companies leverage their assets, and we offer custom loan solutions to fit your needs. Our team of experts is ready to help you grow your business. Contact us today to learn more about our asset-based lending solutions. 773-548-4131 or sales@loebequipment.com.