Asset-based loans provide lower-cost capital by leveraging tangible business assets such as real estate, licensing, or qualified equipment/ inventory/vehicles. Because the loan is secured, lenders can often offer higher funding amounts, longer repayment terms, and more favorable cost of capital compared to unsecured options. These structures are commonly used for bridge financing, expansion, or refinancing higher-cost debt.
Among asset-backed options, real estate loans are often the most significant and versatile. They can include commercial property loans, owner-occupied real estate financing, bridge loans, and cash-out refinances that allow businesses to access equity tied up in property. Real estate-backed lending typically offers the most competitive rates and longest terms, given the stability and appraised value of the underlying asset. For companies with substantial property holdings, this approach can serve as a cornerstone for long-term capital planning.
The strength of this option lies in its ability to deliver lower-cost capital compared to unsecured alternative lending, since the loan is backed by tangible assets that reduce lender risk. Funding limits and repayment schedules are determined by the real, measurable value of your assets, allowing for the longest possible terms and more manageable payments. For asset-rich businesses seeking stability and scale, this structure provides one of the most efficient and affordable ways to unlock capital without giving up operational control. If you have significant property, plant or equipment on the books, book a free consultation to speak to a professional today to get clarity on your options.
