Asset Finance
Asset-based finance is a specific method of providing companies with term loans and therefore working capital by using collateral such as inventory, machinery, equipment, property and accounts receivables to name a few. The terms of each asset-based finance loan will differ from client to client as there are numerous ways to structure such a loan. The interest rates that are charged on asset-based finance loans are more affordable than invoice discounting and factoring as they run over a longer time frame such as 12 – 36 months periods. To qualify for an asset-based finance loan your company should be at least 3 years old and generate a turnover of minimum R24 million per annum.