In Malaysia, the financial products available to businesses are plenty. If you’re a company on the cusp of exciting growth, but feel hampered by the lack of capital, look no further than asset-based loans for an answer.
Asset-based loans provide companies that are aggressively growing with an injection of funds to ensure business continuity.
But first, what are asset-based loans, and do you qualify for such a solution?
Asset-based financing is a flexible option for gaining additional capital by putting up a company’s assets as collateral. In other words, you offer up your assets to a financier in order to receive extra capital to grow your business.
Once you receive this additional financing, it gives you the freedom to take on new initiatives that will grow profits for your business. It’s also a great capital injection to ensure project completion. In some cases, businesses make a request for asset-based loans to finalise an acquisition.
The assets that borrowers can offer up as collateral varies. Different lenders will have different preferences. However, it is common for lenders to ask for accounts receivables and inventory as stakes.
But there is no limit to the type of collateral required. Some financial organisations accept tangible assets such as property (free of encumbrances), gold, art pieces, luxury watches, or cars that appreciate in value, and intangible assets such as share capital.
After some calculations and valuation of the assets up for collateral, the lender may offer up between 50% and 80% of the asset value as cash advance to the borrower.
Borrowers with a good track record of business operations and growth, along with excellent credit standing and financial systems may easily obtain asset-based financing. Successful approval of asset-based loans also depends on the number of customers with good credit ratings that the company has.
Whether you are looking to get some additional working capital to finance your growth, to acquire additional resources, to turn around your business, or simply to get over a financial bump, asset-based loans are a viable option especially for companies with good financial records, fast-moving inventory, and customers with quick turnaround time when it comes to settling payments.
About Limra Assets
Limra Assets is a Shariah-compliant financing solutions financier that provides loans for property financing, SME businesses loans and gold investment. We offer a range of financing options to help individuals and businesses, including alternative financing for businesses that are unable to obtain funds. Our goal is to provide access to funds for investments in a Shariah-compliant manner that focuses on transparency, customer service, and competitive rates, Limra Assets can be a valuable partner in your gold investment journey.
If you’re interested in learning more about Limra Assets and our Shariah-compliant financing solutions for property purchases, gold purchases or business loans, please contact us for more information.
Disclaimer:
It is important to note that taking out a loans for any purchases and gold investment, whether through Limra Assets or any other lender, carries risks and should be approached with caution. It is important to carefully consider your financial situation and investment goals before taking out a loans, and to ensure that you fully understand the terms and conditions. Additionally, investing in gold carries its own risks and should be done with the guidance of a financial professional. This information and all external links are provided for educational purposes only and should not be considered financial advice.
In Malaysia, the financial products available to businesses are plenty. If you’re a company on the cusp of exciting growth, but feel hampered by the lack of capital, look no further than asset-based loans for an answer.
Asset-based loans provide companies that are aggressively growing with an injection of funds to ensure business continuity.
But first, what are asset-based loans, and do you qualify for such a solution?
Asset-based financing is a flexible option for gaining additional capital by putting up a company’s assets as collateral. In other words, you offer up your assets to a financier in order to receive extra capital to grow your business.
Once you receive this additional financing, it gives you the freedom to take on new initiatives that will grow profits for your business. It’s also a great capital injection to ensure project completion. In some cases, businesses make a request for asset-based loans to finalise an acquisition.
The assets that borrowers can offer up as collateral varies. Different lenders will have different preferences. However, it is common for lenders to ask for accounts receivables and inventory as stakes.
But there is no limit to the type of collateral required. Some financial organisations accept tangible assets such as property (free of encumbrances), gold, art pieces, luxury watches, or cars that appreciate in value, and intangible assets such as share capital.
After some calculations and valuation of the assets up for collateral, the lender may offer up between 50% and 80% of the asset value as cash advance to the borrower.
Borrowers with a good track record of business operations and growth, along with excellent credit standing and financial systems may easily obtain asset-based financing. Successful approval of asset-based loans also depends on the number of customers with good credit ratings that the company has.
Whether you are looking to get some additional working capital to finance your growth, to acquire additional resources, to turn around your business, or simply to get over a financial bump, asset-based loans are a viable option especially for companies with good financial records, fast-moving inventory, and customers with quick turnaround time when it comes to settling payments.