Asset-Based Lending
A New Revitalization of an Old Lending Practice
In the simplest meaning, asset-based lending is any kind of lending secured by an asset. This means if the loan is not repaid, the asset is taken. A home mortgage is an example of an asset-backed loan. More commonly however, the phrase is used to describe lending to business and large corporations using assets not normally used in other loans. Typically, these loans are tied to inventory, accounts receivable, machinery and equipment, but they can also include exotic things like the value of pharmacy script files, a trademark, or whole assets of intellectual property. For example, Midway Games took out a line of credit secured by its Mortal Kombat game. If it fails to repay, the bank then owns the franchise and can sell the rights to it.
Categories: Business at It's Best, Changing World of Finance, Obtain Business Financing, Small Business Consulting Tags: Asset, Equipment, Inventory, lending, Real estate, Receivables
Payday Loan Consolidation
Guest Speaker Angela Sanders
Earlier this month we posted an article about Payday Loans, and the possible pitfalls connected to this institution. This post was evidently compelling enough for a reader to ask to be a guest writer and post her own story. The following is from Angela Sanders, who writes a Blog of her own called A Financial Journal. We are always excited in bringing you the very best in information and calls to action on this blog. Here is Miss Angela…
Is it possible to consolidate your debts?
“The consumers take out payday loan to manage their emergency expenses at the middle of the month. When you apply for payday loan you are not required credit check so the interest on this loan is comparatively higher than other loan programs. Make sure that you pay off the owed amount on scheduled date to avoid the accruing interest on the principal balance.”
Categories: Business at It's Best, Changing World of Finance, Economic Domino Effect, Money education, Pay Day Loans Tags: debt, financing, lending, Money education, Payday loan
Peer-To-Peer Lending
With the credit markets tightening and banks implementing strict lending standards there has been a surge in alternative forms of borrowing money
Categories: Business at It's Best, Changing World of Finance, Credit Scoring and Reporting, Economic Domino Effect, Obtain Business Financing, Small Business Consulting Tags: borrowing, Credit, credit card, financial, lending, peer-to-peer, peer-to-peer lending, unconventional
Alternative Lending Sources
What is the proper measure for creditworthiness in this day and age?
Categories: Business at It's Best, Changing World of Finance, Credit Scoring and Reporting, Economic Domino Effect, Internet Marketing Answers, Obtain Business Financing, Small Business Consulting, Uncategorized Tags: Credit, lending, market, market place, organizations, peer-to-peer, subprime
Approved or Denied: The Small Business Loan Underwriter’s Perspective
I had the pleasure of interviewing a loan underwriter several days ago. He’s been underwriter biz loans and lines for almost 20 years. His analogy was simple. Yet, how many times do we overlook the most critical elements of applying for a loan. Here it is:
Underwriter’s Point of View
In my years as a small business loan underwriter, I have worked with a variety of applicants and transactions across the country, ranging from start up enterprises, purchases of existing operations, franchises, partner buyouts, etc. As such, I am able to compile a few tips to help you have a positive experience with your potential lender.
First of all, be HONEST, particularly to any information you disclose in writing. Fraud or misrepresentation is grounds for immediate denial of your application. In addition, most lenders will require that you be able to produce documentation to verify certain items on your application or have the means to verify the items themselves (i.e. credit reports, background checks, etc).
