Asset-Based Lending vs Traditional Loans

Understanding the key differences to make the right choice for your business

Comparing Funding Options

Asset-Based Lending Features

  • Secured against business assets
  • Flexible credit requirements
  • Higher borrowing limits based on asset value
  • Quick approval process
  • Revolving credit facility option

Traditional Bank Loans Features

  • Fixed term structure
  • Strict credit requirements
  • Based on business performance
  • Longer approval process
  • Fixed repayment schedule

Key Differences

Feature Asset-Based Lending Traditional Loans
Security Business assets Various or unsecured
Credit Requirements More flexible Strict
Approval Time Days to weeks Weeks to months
Flexibility High Limited

Choosing the Right Option

Consider these factors when deciding:

  • Available business assets
  • Credit history
  • Funding timeline needs
  • Desired flexibility
  • Growth plans

Explore More About Asset-Based Lending

What Is ABL?

Understand the basics of asset-based lending.

How It Works

Learn the step-by-step process of asset-based lending.

ABL in the UK

Discover asset-based lending options in the UK market.

Small Business Solutions

Find ABL solutions tailored for small businesses.