Need fast access to capital without the red tape of traditional bank loans? Private lenders are stepping up to support small businesses with asset-based loans, using your tangible assets like inventory or accounts receivable as collateral. This flexible financing option provides liquidity when you need it most, empowering you to manage cash flow, invest in growth, and seize new opportunities with confidence.

1. Unlock Business Growth
with Private Lenders &
Asset-Based Loans

2. Why Banks Are Tightening
Credit for Small Businesses
Traditional banks are growing more cautious in 2025. They
are concerned about economic fluctuations, high interest
rates, and unstable cash flow in certain sectors.
The Federal Reserve’s interest rate hikes have also made
banks more selective. As a result, small businesses are facing
longer approval times, stricter financial covenants, and
higher rejection rates for business loans.
Business owners with weaker credit histories or seasonal
cash flows often find it hard to meet traditional underwriting
standards. Many cannot show strong balance sheets or
steady financial statements needed for approval.

3. Private lenders now offer small business owners quicker
and easier business financing solutions. They use a
different lending process that focuses less on credit
score and more on business assets and liquidity.
Many small businesses are now turning to private
lenders for small business loan financing to keep their
operations running and support business growth.
Small business owners looking for growth opportunities
cannot afford to wait months for financing decisions.
They need immediate access to working capital and
flexible repayment terms, which traditional lending does
not always provide.

4. What Are Asset-Based Loans?
Asset-based loans are a type of financing where
businesses secure a loan using their tangible assets.
These could include accounts receivable, inventory,
machinery, or real estate.
Unlike traditional bank loans that focus heavily on
creditworthiness, asset-based loans focus on the value
of the business’s assets. The borrowing base is
determined by the types of assets pledged as collateral
and their valuation.
For example, a distributor could borrow against unpaid
customer invoices, or a manufacturer could use
equipment and inventory to access funding.

5. Why Small Businesses May
Prefer Private Lenders for
Asset-Based Loans
Private lenders provide faster funding compared to
traditional banks. Many can approve an application and
disburse funds within days, not months.
They are more willing to work with small businesses that
do not have perfect credit histories. Private lenders
focus on asset valuation, advance rates, and business
needs rather than past credit scores.
Private lenders also offer flexible structures like
revolving lines of credit or short-term loans. This helps
small businesses manage cash flow during periods of
growth or fluctuations.

6. Understanding Asset-Based
Loan Rates in 2025
Asset-based loan rates are influenced by several factors
including asset quality, advance rates, and the risk profile of
the borrower.
Private lenders tend to offer slightly higher rates than
traditional lenders due to the faster funding process and
flexible underwriting standards.
However, small business owners often find that the benefits
outweigh the costs, especially when they need quick access
to working capital.
It is also important to understand whether your loan is
structured as a term loan, a revolving line, or a factoring
arrangement, as this can impact the overall cost.

7. Risks to Watch Out For
While asset-based loans offer flexibility, they are not
without risks.
If a borrower defaults, the private lender has the right to
seize and liquidate the pledged assets. This could
disrupt business operations significantly. Small
businesses must accurately value their assets and
maintain clear financial statements to avoid borrowing
more than they can repay.
Choosing the wrong private lender could also expose a
business to unfavorable terms, hidden fees, or
aggressive asset management practices. Business
owners must carefully review loan agreements,
understand advance rates, and negotiate fair terms.

8. How to Choose the Right
Private Lender for an Asset-
Based Loan
Not all private lenders are created equal. Look for
private lenders with a strong track record in your
industry, whether that’s healthcare, distributors, or
manufacturing. Compare advance rates, loan amounts,
interest rates, and repayment terms carefully.
Transparent pricing should be a key part of your
decision-making process.
Ask about the lending process, how assets are valued,
and how often the borrowing base is reviewed. A
smooth lending process can save your team valuable
time. Also, find out what types of assets the lender
accepts.

9. Why Choose Biz2Credit?
• Trusted partner for franchise
funding
• Biz2Credit was founded in
2007 and has provided more
than $10 billion in loans.
• Dedicated support team
• Tailored financing solutions

10. Thank
You