Asset Based Lending

Print this page

What is it?
Asset based lending is a type of financing based on a revolving line of credit. The credit is supported by the collateral in your portfolio. Such collateral assets may include accounts receivable, inventory, equipment and real estate.

Whether you call it growth financing, working capital financing or a revolver, ultimately it is a loan designed to enhance working capital from your own asset base. Wells Fargo Preferred Capital specializes in asset based lending and we are ready to put our extensive knowledge to work for you.

How it works
Your loan is secured by your company's assets. This asset based line of credit has a revolving credit limit that changes based on your receivables balance. Wells Fargo Preferred Capital manages the revolving credit facility and collateral through evaluations of your company's receivables size, allowing for larger lines or credit when needed.

Advantages
There are many advantages to be gained with asset based receivable lending, including leveraging your assets to generate cash flow, portfolio growth and acquisition opportunities. By using your company's current assets as collateral, you can quickly generate cash and utilize it when needed.

Interested in hearing more about how we can help your auto finance or direct consumer loan business? Call us today at 800-569-5016.