What Are Asset-Based Loans?

What Are Asset-Based Loans?

Asset-based loans are generally offered by finance companies. They are provided on a revolving credit basis and secured against the assets of a company. Usually, accounts receivable and inventory are taken as collateral.

These types of loans are perfect for companies that are expanding rapidly or are undercapitalized. They can also be utilized for financing acquisitions. They work only in those cases where the company has a record of being able to turn over its inventory a number of times in a year and where the accounts receivable is proven.

Asset-based finance is offered by a huge number of funding companies as well as banks. However, the market is not so wide for small businesses who are looking for loans of $500,000 or lower. The majority of lenders prefer sanctioning loans of higher value as the cost of monitoring the loaned amount is the same, regardless of its value.

Asset-based funding is more expensive as compared to bank loans since asset-based lenders incur a higher expenditure than bankers. However, the pricing among lenders is fairly competitive. For a small business, asset-based borrowing may prove to be unaffordable as the rate of interest could be anything between 12 and 28 per cent.

It is simple to get an asset-based loan if your company has a good financial record, effective reporting systems, stable inventory and customers who are known to honor their commitments. Without these factors in place, it may be difficult trying to get this kind of finance.

Asset-based financing is …

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How to Make Money – Web 2.0 is the Future

Any online entrepreneur who has been having a difficult time determining how to make money should take a close look at Web 2.0. I fully understand that just seeing the term “Web 2.0” may create anxiety due to the fact that it signifies something new, something cutting edge. Without the proper understanding, article marketing, social bookmarking, video marketing, podcasting, or whatever it may be might confuse and frustrate individuals to the point that they are unwilling to recognize that these tools can do for them. As a result, I am going to attempt to explain just a few of the benefits of Web 2.0 without overwhelming you.

The following will discuss three of the most valuable aspects of Web 2.0 to those who utilize as an online marketing tool. As an online marketer, you want to get your message to a large yet targeted audience as quickly as possible. The following will provide you with that stage.

1. Providing Tags for Compositions

A “tag” is simply a keyword which is attached to a composition. Therefore, if you create a video on a particular topic, you would tag the video with keywords relevant to the topic of discussion so that others can find it by searching for those keywords. As you may have guessed, other compositions can be tagged as well, such as blog posts and articles.

2. Acting in Unison

I am sure that you have read an article before which has received a large number of “Diggs” …

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