If you are not quite sure what asset based lending is in relation to other types of lending, you are definitely not alone. David Golob is CEO of Microcom Technologies, a high-volume wholesaler and Amazon seller, and an expert on asset based lending, and he’s here to give us the goods on this unique lending type.
Listen in as David shares why you might consider asset based lending over other types of financing, as well as what you can expect the process to look like. You’ll learn some of the mistakes that he’s made (so you can avoid going down the same road), the standard bank fees, and more. This is a great primer on asset based lending that you won’t want to miss!
- Why you may want to consider vendor terms as a way to fill the money gap. (4:55)
- What asset based lending is. (7:00)
- What kind of banks offer asset based lending. (9:20)
- Why you would consider asset based lending over other types of lending. (12:15)
- How much an average bank will loan you based on your assets. (14:30)
- What happens if a bank has to foreclose on a loan. (16:25)
- What the process of asset based lending looks like. (19:50)
- The standard fees from the banks and which ones can usually be negotiated. (22:40)
- How often you can expect an audit on your inventory. (27:55)
- Some of the mistakes that David has made with this type of lending. (33:40)
- What Microcom.us specializes in. (37:30)
What Was Mentioned
- David Golob: Website | LinkedIn | Twitter
- Reach out to David for advice (Community Membership required)
- Chris Harrison – Liber & Co.
- Bobby Reger – Elements Brands
- Dhruvin Patel – Ocushield
- Joshua Cauley – Amplicell
- Tomas DeFrancia – RovR Products
- Elliot Kim – Brevitē
- Augusto Moronta – Better Not Younger
- One Click Upsell – Increase Sales 15%+ with Pre-and Post-purchase Upsells. (On average, Shopify users increase sales 15% immediately after installing the app!)
Ideas Worth Sharing:“Finding the right bank is just a process of shopping, shopping, shopping.'”- @MicrocomTweet Click To Tweet “Those ABL specialty finance companies love lock-box receivables because it really mitigates their risk. You can’t collect the money from the customer and then disappear on a jet and fly off to an island somewhere.”- @MicrocomTweet Click To Tweet “Every bank has their own rules that they’ve set up internally.”- @MicrocomTweet Click To Tweet
Image credit to Jatinder Singh/GeniusMaker from Pixabay.