Asset-Backed Funding Solutions
Unlock Your Potential with Asset-Backed Funding Solutions from Merchant West
At Merchant West, we understand the challenges businesses face when seeking financing. That’s why we offer innovative funding solutions that are asset-backed and tailored to your needs. Our expertise in funding allows businesses to access capital quickly and efficiently, leveraging their existing assets for growth opportunities or providing financing for new assets.
What is Asset-Backed Funding?
Asset-backed funding is a financial solution where businesses can use their assets as collateral to secure larger amounts of finance. Whether it’s equipment, software solutions, inventory, or accounts receivable, these assets hold value that can be leveraged to obtain the funding your business needs. With Merchant West, you can optimise your balance sheet and secure appropriate funding to leverage your asset base and improve your working capital, fuelling your growth and expansion.
How Does Asset-Backed Funding Work?
When you choose asset-backed funding from Merchant West, you’re leveraging the value of your assets to secure a loan. Here’s how it works:
Asset Evaluation
We structure a financing solution with the appropriate credit enhancements and security (in the form of assets or cash flows) that facilitate the funding. We assess the nature, value and recoverability of your assets wholistically to determine how much financing you can access.
Flexible Loan Structuring
We structure a financing solution tailored to your needs, with flexible terms and competitive rates. Whether you need a term loan or a revolving line of credit, we have the right asset-backed funding solution for you.
Collateralization
Your assets act as collateral for the loan, providing security for both you and the lender. Each transaction is bespoke and supported by various structural features and credit enhancements of which the assets are a critical component. These structural features reduce the lender’s risk and create a platform for financing.
Capital Injection
Once approved, you receive the capital you need to invest in your business, whether it’s for expansion, equipment purchase, working capital, or other needs.
Why Choose Asset-Backed Funding from Merchant West?
Tailored Financing Solutions : We understand that every business is unique. Our asset-backed funding solutions and structures tailored to your specific requirements.
Unlock Liquidity: Asset-backed funding allows you to access liquidity quickly by monetising the assets and associated cash flows.
Diversification: These financial instruments enhance investor diversification, providing access to unique opportunities not typically available in the wider market.
Complexity: We know that time is of the essence when it comes to securing financing. Our offerings are complex and we shield our clients and investors from the complexity while managing all aspects of the transaction timiously.
Our Commitment to You
At Merchant West, we are committed to helping businesses thrive. Our experienced team will work closely with you to understand your unique needs and provide personalised funding solutions that drive success. Whether you’re an established business, or a growing enterprise, we’re here to support you every step of the way.
How do I find out more about Asset-Backed Funding Solutions?
Simply complete our online enquiry form and one of our experts will be in touch.
Frequently Asked Questions
This type of funding can leverage a wide range of assets as collateral. Commonly used assets include equipment, software, vehicles, inventory, and accounts receivable. The key is that the asset should hold significant value and be easily transferable to the lender in case of default.
The valuation process is a crucial step in asset-backed funding. At Merchant West, our team of experts will conduct a thorough assessment of your assets to determine their current market value and value in a recovery scenario. This process may involve appraisals, market comparisons, and an evaluation of the asset's condition and potential for depreciation. The accurate valuation ensures that you receive the maximum possible funding based on the true worth of your assets.
Asset-backed funding offers several advantages over traditional loans. Firstly, it allows businesses to access larger amounts of capital by leveraging valuable assets. Secondly, since the loan is secured by collateral, lenders are more likely to offer competitive interest rates and terms. This type of funding also provides faster approval times compared to unsecured loans, enabling businesses to meet their financial needs promptly. Additionally, businesses can retain ownership and control, as opposed to equity financing, which often requires giving up a portion of ownership.
Get in touch with us
Want answers to a pressing question about our Asset Backed Funding or other solutions? Fill in the form and we’ll get back to you shortly.
Asset Backed Funding
Asset Backed Funding
