What's Happening
Real Estate

Real estate developers live in a world of tight deadlines and constant demands.

Projects often hinge on securing capital fast, but traditional loans move at a snail's pace. Asset-based lending (ABL) flips the script. It uses the value of your assets to provide quick and flexible financing, giving you the power to move projects forward without the usual red tape.

Let's dive into why ABL has become a go-to option for developers and how it can reshape your approach to financing.

Access to Capital Without Credit Hassles

Traditional loans can feel like a high jump over a bar that keeps rising. If your credit score isn't flawless or your income doesn't meet their strict criteria, you're out of luck.

ABL skips the credit obsession. Instead, it focuses on your assets-like property or equipment-to determine loan eligibility.

The Numbers Don't Lie:

• The U.S. ABL market is projected to hit $600 billion by Q4 2024, growing 5% annually.
• This growth shows how developers are leaning on ABL to bypass credit-based barriers.

Common Assets Used in ABL

• Real Property: Commercial buildings, residential developments.
• Receivables: Revenue tied up in unpaid invoices.
• Inventory: Construction equipment, raw materials.

Learn More: How hard money lending applies to different property types.

By shifting the focus from credit history to collateral value, ABL opens doors that traditional financing locks tight.

Faster Funding for Developers Who Can't Wait

Timing is everything in real estate. Delayed funding can mean losing out on a prime property or pushing back critical project milestones.

ABL lenders, like Crowd Lending, Inc., excel at speed. Their process moves fast because they prioritize the value of your assets, not a mountain of paperwork.

Streamlined Funding in Four Steps

• Application: Minimal documentation about your assets.
• Term Sheet Issued: Quick loan terms based on your property's value.
• Underwriting: Asset-focused review, not your credit score.
• Closing: Funds disbursed in as little as 10 business days.

Learn More: Crowd Lending's loan process.

Fact Check: Traditional loans can take weeks-or even months-to close. Meanwhile, ABL gets funds in your hands when you need them most.

This speed lets you secure properties, pay contractors, or kickstart projects without losing momentum.

Flexibility You Won't Find Anywhere Else

Real estate projects aren't one-size-fits-all, and neither should your financing be. ABL works around your needs, offering unparalleled flexibility in both loan terms and collateral options.

Why Developers Love ABL's Adaptability

• Custom Loan Terms: Match repayment schedules to your project timelines.
• Collateral Variety: Use property, receivables, or even inventory.
• Multi-Use Funding: Perfect for projects like fix-and-flips, condo conversions, or new construction.

Learn More: Differences between hard money and traditional loans.

ABL also allows you to pivot. If your project shifts or new opportunities arise, you're not locked into rigid terms that don't fit anymore.

Resilience to Market Swings

Markets change, but your financing shouldn't be tied to their unpredictability. ABL's asset-first model makes it a reliable choice in volatile conditions.

The Data Speaks:

• The global ABL market is set to grow at a 7.4% compound annual growth rate (CAGR) from 2024 to 2030.

Fintech platforms like SmartAsset and eCapital are making ABL even more accessible. With streamlined online applications and faster approvals, these platforms help you navigate tough markets without losing your footing.

Learn More: Why timing is key in real estate investments.

When the economy shifts, having adaptable financing keeps your projects steady.

No Credit? No Problem.

ABL doesn't care if your credit history has some dents. Instead, it focuses on the value of your assets and how they align with the loan amount you need.

Loan-to-Value Ratios Explained

Unlike traditional loans, where bad credit can slam the door shut, ABL prioritizes collateral value to keep the financing door open.

Learn More: Hard money loans for today's market.

If you've got valuable property or assets, ABL ensures you're still in the game.

The ABL Advantage Over Traditional Loans

Wondering how ABL stacks up?

Here's a side-by-side look.

When it comes to speed, flexibility, and accessibility, ABL is unmatched.

FAQs About Asset-Based Lending

Who benefits most from ABL?

- Developers with time-sensitive projects or inconsistent credit histories are ideal candidates.

Is ABL more expensive than traditional loans?

- Interest rates are higher, but the speed and flexibility often outweigh the cost.

How do I get started?

- Start by exploring Crowd Lending's loan application process.

Final Thoughts

Asset-based lending isn't just financing-it's a lifeline for developers tackling real estate's fast-paced challenges.

Whether you're launching a fix-and-flip or managing a multi-million-dollar commercial project, ABL delivers the speed, flexibility, and reliability you need.

If you're ready to take control of your funding, Crowd Lending, Inc. can help you move your projects forward. Explore their market insights and see how ABL can redefine your approach to financing.