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best-asset-based-finance-companies
December 9, 2022
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8
min read
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Written by: 
Nikolaus Hilgenfeldt
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Category:
Finance

7 Best Asset-Based Finance Companies To Consider in 2023

Are you looking for a trustable asset-based finance company that lets you quickly access money without going through the lengthy and wasting application process?

If the answer is yes, then you are in the right place.

Asset-based funding, one of the best alternatives to bank loans, can be a great way to launch and grow your ecommerce company with little to no money and without taking any risk.

However, the advantages and disadvantages of the conditions you can get vary from one company to another, just like with any range of options.

And to save you time, in today's article, we'll list the top 7 asset-based finance companies that can help you create a stable and continuous cash cycle for your business.

But first, let's quickly review what asset-based financing is before we move on.

Stay tuned!

What is Asset-Based Financing?

The term "asset-based financing" refers to a type of financing in which a business borrows money by pledging its assets as collateral.

The amount of this loan is established by the lender based on the value of the collateral. 

Companies with many assets but insufficient credit or few other assets often turn to this type of financing. 

As an added benefit to asset-based financing, it can be used by businesses needing immediate capital to meet both long-term goals and temporary gaps in their cash flow.

What are the Types Of Asset-based Loans?

There are several types of asset-based loans, including:

  • Inventory financing — This loan is based on a company's inventory. The lender provides funds based on the value of the stock, and the company uses the funds to purchase additional merchandise or to cover other operating expenses.
  • Accounts receivable financing — This type of loan is based on a company's accounts receivable. The lender provides funds based on the value of the accounts receivable, and the company uses the funds to cover operating expenses or to invest in new opportunities.
  • Equipment financing — This type of loan is based on the value of a company's equipment. The lender provides funds based on the value of the equipment, and the company uses the funds to purchase new or upgrade existing equipment.
  • Real estate financing — This type of loan is based on a company's real estate value. The lender provides funds based on the value of the real estate, and the company uses the funds to purchase additional real estate or to make improvements to existing properties.

7 Best Asset-Based Finance Companies

1. Myos

Myos is an asset-based company that offers merchants an entirely new way to quickly and effectively finance working capital through artificial intelligence (AI), data (data-driven), and a complete lack of annuities and personal guarantees.

Myos's funding concept originated from the needs of online retailers for working capital and their subsequent frustration with the available financing options.

Instead of analyzing the products and their potential for profit, most banks and fintech evaluate using traditional risk metrics. 

With Myos, on the other hand, you can place more product orders, introduce new ones, or spend money on marketing without personal risk (products serve as collateral)

Furthermore, you can purchase finance, stock finance, or cross-finance with a flexible repayment schedule within 24 months

For instance, if you decide after a week that you no longer require the funds, you can pay them back, and the project is complete without additional costs.

myos-process

How Does Myos Work?

Based on the evaluation of your product's data, such as price history, competition, visibility, etc., an artificial intelligence calculates the volume of financing and interest rate

The financing volume can be lower or higher because it is not based on the purchase price.

myos-process

Now, let’s find out what are advantages and disadvantages of using Myos as your #1 funding company for establishing a stable cash flow.

Pros

✅ Easy-to-use online application

✅ No personal guarantee or liability

✅ Goods are used as collateral

✅ Capital loans from £10,000 to £2,500,000

✅ Low Interest rates (1% and 3% on a monthly basis)

✅ Repayments that are flexible

✅ There are no hidden fees

✅ Fast project evaluation

✅ AI product analysis for risk assessment

Cons

🚫 Asset and invoice-based finance is only available.

2. Aldermore

Aldermore is a company that 10 years ago began offering commercial mortgages and other products to help small businesses with their financing needs.

Today they offer financial growth solutions all over the UK to SMEs and other small businesses such as asset finance, invoice finance, commercial mortgages, and construction and development mortgages.

As per the asset-based loans, Aldemore offers hire purchase, refinance and lease financing where you don't have to pay for expensive assets or machinery all at once. 

In addition, funding is available for a wide range of assets, including manufacturing equipment, energy, and IT resources.

Pros

✅ Brokerage service

✅ Budget for equipment purchases

✅ Various financing options 

✅ Options for refinancing, leasing, and hire purchase 

✅ Borrow between £15,000 and $5,000,000 

✅ Personalized solutions 

✅ Options for structured or fixed rentals 

✅ Focuses on SMEs 

✅ Online inquiries

Cons

🚫 The website doesn't provide enough specific information about terms and rates for business financing

3. Bluestar Leasing

bluestar-homepage

Bluestar Leasing is a finance broker specializing in asset finance and commercial loans, including software finance, fit-out finance, commercial loans, and VAT loans. 

Asset-based finance includes a wide range of equipment for different businesses across all sectors ,including  hospitality, retail, healthcare, media, and more.

In addition, Bluestar leasing company funds the following asset types:

  • Catering
  • Commercial furniture
  • Fit out
  • Gym
  • Machinery
  • Security
  • Software
  • Technology
  • Websites
  • And more

Pros

✅ Finances a broad range of assets

✅ Terms from 1 to 7 years for loans starting at £1,000

✅ Option to refinance current assets

✅ Offers quick credit decisions

✅ Appropriate for a wide range of businesses, including startups

✅ Query online

Cons

🚫 Broker fees.

🚫 Bluestar Leasing's payments and costs can vary.

4. Braemar Finance

Braemar Finance is an asset finance company that provides a range of finance options, including business loans, tax, and VAT loans, hire purchases, and leasing.

They offer tailored solutions focused on helping businesses grow and develop by giving their clients access to equipment, vehicles, and technology they need without impacting their cash flow.

That includes an unsecured commercial loan for various business purposes, from buying equipment and refurbishment to buying into a new business.

In addition, Braemar Finance specializes in finances for dental, veterinary, optical, legal, accountancy, medical, pharmacy, and funeral businesses. 

Pros

✅ Finances assets

✅ Asset-ownership (hire purchase)

✅ Tax-deductible expenses

✅ Fixed repayment

✅ Personalized deals

✅ Quick decision

✅ Underwriters in-house

✅ Online request

Cons

🚫 Online businesses that are included in the specified sectors are able to apply.

🚫 The website doesn't provide enough specific information about terms and rates for business financing.

5. Close Brothers

Close Brothers Group is a leading UK-based merchant finance provider. They ensure the quality and returns on lending by consistently applying lending criteria across the financial cycle.

The loans they make are almost always collateralized, and they adhere to stringent underwriting standards that prioritize safety overgrowth.

Hire purchase, refinance/capital release, finance lease, and operating lease are just some of the asset-based lending products they provide.

For instance, vehicles, machinery, and equipment are all good candidates for the hire purchase payment plan, which allows you to amortize the cost of the asset over a set period

Companies of all sizes can benefit from the sale and leaseback financing options available through refinancing/capital release. 

With a finance lease, you can make use of expensive machinery without taking on the burden of ownership. When the lease term is up, you have the flexibility to continue making payments on the asset, find a new buyer, or return it. 

The asset is rented from a third party who retains ownership at the end of the operating lease term.

Particular industries can also access financings, such as airlines, breweries, the maritime sector, and real estate brokers.

Pros

✅ Offers a variety of asset finance products

✅ Equipment, vehicles, plant, and technology-friendly

✅ Buyout option (hire purchase)

✅ Flexible repayments that account for seasonal cash flow changes

✅ Tax-efficient if offset by profits

✅ Rent or sell the asset (leasing)

✅ Available cell phone requests

Cons

🚫 Not suitable for smaller businesses.

🚫 The website doesn't provide enough specific information about terms and rates for business financing.

6. CMF Business Finance

cmf-business-finance-homepage

CMF Business Finance is a broker that provides asset financing for various purposes, including new ventures, bridge loans, business expansion, and commercial mortgages.

Companies can get loans from the best UK lenders through these underwriters at surprisingly low-interest rates and in a short amount of time.

CMF Business Finance allows you to borrow from £1,000 to over £1,000,000 with new and pre-owned assets used to secure asset-based loans. 

Companies can use inventory assets like vehicles, machinery, or equipment as collateral for loans, and they can use in-house experts to evaluate data for asset-based lending. 

Moreover, payment terms with CMF Business Finance are adaptable and reasonable, whether you opt for leasing or hire purchase.

Pros

✅ Provides various types of asset finance

✅ Refinancing of current assets

✅ Lending between £1,000 and £1,000,000

✅ Provides tiers of payment

✅ Reduced tax obligations

✅ Quick to install

✅ Available decision within 4h

✅ Assistance for additional information available over the phone.

Cons

🚫 Broker fees.

🚫 Repayments and costs can vary.

7. Novuna

Novuna is a banking and finance growth company that offers unique financial options and enhanced client service to individuals, SMEs, and Multinationals.

Easy to understand and reasonably priced, their financing options are tailored to each client's specific requirements, allowing them to purchase or lease the equipment they need to run their businesses.

With Novuna Business Cash Flow, you can release up to 90% of the value of unpaid invoices on the day they are generated.

Within 24 hours, you can start increasing your cash flow, without any collateral as a security measure for the loan approval.

Novuna allows you to cash out an annual maximum of £5,000.00 in invoices.

Upon receiving payment from your clients, Novuna will transfer the remaining balance to you after deducting any applicable fees.

In addition, Novuna collaborates with businesses across the industry, including manufacturers, distributors, franchisees, and franchisors.

Pros

✅ Provides asset finance products

✅ Purchase of business equipment

✅ Borrowing amounts ranging from £10,000 to £500,000

✅ Competitive financing terms

✅ Funding is available within 24 hours

✅ Terms ranging from 2 to 5 years

✅ Apply online

Cons

🚫 Asset and invoice-based finance is only available.

 Wrapping Up

If you're like most companies, cash flow is a constant source of anxiety. Thus, maintaining a steady cash flow is crucial, as it is the company's beating heart. 

After all, keeping the lights on and the bills paid is only possible if a regular flow of cash is coming in.

And asset-based financing can help you overcome such difficulties. 

We hope that our list of 7 best asset-based financing companies can help you find the perfect solution for the growth of your business.

However, if you haven’t decided just yet, let me tell you a few extra reasons why you should consider starting with Myos.

We prioritize the following points:

  • Your business has a registered office in the UK or the EU.
  • Your business has been operational for at least 6 months.
  • At least 50 days have passed since you first sold your products online (e.g., on Amazon, eBay, online shop, etc.).
  • Your products have a minimum one-year life cycle and shelf life.
  • The product's price is at least 5 euros (EU) or 5 pounds (UK).
  • Your goods are ready for purchase.
  • The project doesn’t include the following products: COVID-19 products, branded watches, ammunition, and weapons (masks, rapid tests, etc.).

What do we offer?

  • Artificial intelligence evaluation of your products based on data you provide
  • 3 different types of asset-based financing solutions
  • Loan range between £10,000 to £2,500,000
  • Quick processing of your financing request(24h-72h, if your application satisfies all the requirements)

Join Myos today to explore accessible and affordable options for quick funding.

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