Asset-Based Financing: Turn the Assets You Already Own into Working Capital
Put your receivables, inventory, equipment and other business assets to work. Through our asset-based financing partner, you can use assets such as a house, a car or a boat as collateral, with terms up to 10 years and a team that guides you from application to funding.
WRITTEN AND REVIEWED BY Anthony Collin, CEO, Smart Business Funding. $500M+ funded since 2014. Published February 26, 2021. Updated October 2026. See all options on business financing.
Apply directly with us and you work with us
What is asset based financing?
Asset based financing is funding secured by an asset you pledge as collateral, such as real estate, a vehicle or a boat. Because the asset backs the financing, terms can run up to 10 years through our partners. Approval depends on the value and ownership of the asset.
Asset-based financing made simple
What business owners ask about first when they have valuable assets but need cash.
Assets that can be put to work
If your business owns it and it has value, ask us whether it can help you get funded.
Real Estate and Homes
A home or other real estate you own can serve as collateral for larger funding needs and longer terms.
Browse industries
Cars and Vehicles
Cars, SUVs and other vehicles you own can be put to work as collateral for financing.
Browse industries
Accounts Receivable
Unpaid customer invoices can be put to work so you are not waiting 30, 60 or 90 days for cash.
Browse industriesInventory
Stock sitting on your shelves can support funding for new purchases, seasonal builds and growth.
Retail funding
Machinery and Equipment
Equipment you own can help unlock working capital for payroll, materials or expansion.
Equipment financing
Vehicles and Fleet
Trucks, vans and trailers are valuable business assets that can support funding.
Trucking funding
Imports, Exports and Purchase Orders
Fund the gap between placing an order and getting paid by your customer.
Browse industries
Commercial Real Estate
Property your business owns can be an asset that supports larger funding needs.
Browse industriesYour funding specialist will confirm which assets qualify and how they are valued.
What assets does your business have?
Tick what applies to see how many types of assets could support a financing request. It takes five seconds, and it helps us start the conversation.
- Nothing is submitted when you tick a box
- Your funding specialist confirms what qualifies
- Apply directly with us
Asset checklist
Select all that your business owns.
asset types selected
Illustration only. Eligibility and amounts depend on the partner, your assets and your business.
How asset-based financing works
Three steps from application to working capital. See the full walkthrough on How It Works.
Apply with us
Fill out a short application and send recent business bank statements. Tell us about the assets you want to put to work.
We match you with our partner
We bring your file to our asset-based financing partner, who reviews your business and the value of your assets. Your funding specialist keeps you updated.
Review terms and get funded
Terms can run up to 10 years. You review the full terms before you decide, then put the working capital to use.
The benefits of asset-based financing
Unlock trapped cash
Turn homes, vehicles, boats, receivables, inventory and equipment into working capital you can use right away.
Built on what you own
Your assets are part of the story, which can help businesses with strong assets but uneven sales.
Terms up to 10 years
Longer terms are possible, with your funding specialist confirming every detail before you decide.
Flexible use of funds
Use the capital for payroll, materials, marketing, expansion or whatever your business needs.
Specialized partner
We work with a partner who focuses on asset-based financing.
Work with us directly
Apply with us and you work with us, with a funding specialist to guide you.
Asset-based financing vs. merchant cash advance vs. bank financing
Each can be the right tool. Here is how they typically differ.
| Asset-based financing | Merchant cash advance | Typical bank financing | |
|---|---|---|---|
| Funded by | Our asset-based financing partner | Smart Business Funding or our Marketplace partners | A bank |
| Supported by | Assets you own, such as a house, car, boat, equipment or inventory, used as collateral | Your sales (no collateral required for Direct Fund) | Often collateral and extensive financials |
| Terms | Up to 10 years | Up to 10 months, sometimes 15 (Direct Fund), up to 18 months (Marketplace) | Varies |
| Best for | Businesses with strong assets and a need for working capital | Fast funding for any business need | Established borrowers with time to wait |
Not sure which fits? Tell your funding specialist what you need and what you own. Learn more about merchant cash advances, lines of credit and Transparent Terms.
Businesses that often use asset-based financing
What to have ready
Your funding specialist will confirm the exact requirements for your business.
Asset-based financing questions, answered
Does Smart Business Funding offer asset-based financing?
Yes, through our asset-based financing partner. We do not fund it in house. You apply directly with us, and we work with our partner to find the right fit for your business.
What is asset-based financing?
Asset-based financing is funding that is supported by the value of assets your business owns, such as a home, a car, a boat, accounts receivable, inventory, equipment or commercial real estate. The asset is used as collateral for the financing. It can turn assets that are tied up in your business into working capital.
What assets can support asset-based financing?
Common examples are a house or other real estate, cars and other vehicles, boats, unpaid customer invoices, inventory, machinery and equipment, commercial trucks and trailers, and purchase orders. Your funding specialist will tell you which of your assets may qualify.
How long can the terms be?
Maximum terms are up to 10 years. The exact amount, term, timing and cost depend on your assets and your business, and your funding specialist will confirm them before you decide.
How is asset-based financing different from a merchant cash advance?
A merchant cash advance is based mainly on your business's sales and does not require collateral for our Direct Fund program. Asset-based financing is secured by specific assets you own, which can help businesses with strong assets but uneven sales, and it can come with longer terms. We offer both and can help you compare.
Is asset-based financing a good fit for my business?
It is often a fit for businesses with significant assets, such as wholesalers, distributors, manufacturers, importers and exporters, contractors, trucking companies and retailers with inventory. Talk to your funding specialist about your situation.
What do I need to apply?
A short application, recent business bank statements, and details about the assets you want to put to work, such as an accounts receivable report, an inventory list or equipment details. Your funding specialist will confirm exactly what else is needed.
What will it cost?
Costs depend on your assets, your business and the partner. Your funding specialist will explain the full cost before you decide, and we encourage you to compare every option.
Can I also get other funding from Smart Business Funding?
Yes. We also offer merchant cash advances, lines of credit and equipment financing through our programs and partners. We can help you find the right combination.
More from Smart Business Funding
Ready to put your assets to work?
Apply directly with us, and we will match you with our asset-based financing partner.
Asset-based financing is provided through Smart Business Funding's financing partner. Approval, amounts, terms (up to 10 years) and costs depend on the partner, your assets and your business, and the asset serves as collateral. Images and the asset checklist are illustrative.
