Every day, a new business is born. Small-level owners are full of enthusiasm and hope, envisioning how their endeavor is going to thrive and bring them success, but as reality shows, only some companies manage to persevere. The majority disappear as quietly as they emerged, and in most cases, it happens due to financial difficulties.
Traditional bank loans often seem like an attractive solution, but they come with credit checks that are next to impossible to return, especially if you’re operating in an expensive city like New York. That is why in 2025, the option of collateral loans in NYC is gaining traction. Let’s figure out what asset-based lending is and how it helps small businesses operate.
Asset-Based Lending as the New Financing Solution
If you have ever looked into bank loans, you know that they require impossibly high credit scores, frustrating volumes of documentation, and interest rates that are difficult to cover. Asset-based lending, in turn, doesn’t care about all that. As the name implies, it’s all about what you already own.
It can be a Rolex you got as a gift, an impressive piece of fine art you bought in some gallery, any piece of jewelry, etc. In NYC, things like these can help small businesses secure a loan within 48 hours, which makes asset-based lending fast and effective. Here are other advantages of this solution:
- Confidentiality. Asset-based lending offers private transactions, so if confidentiality is important to you, rest assured that you’ll stay in the shadows.
- Safe. You are not risking plunging into debt by taking an asset-based loan — even in the worst-case scenario, you’ll only lose the things you already possess.
- No income proof. There is no need to prove that you’ll be able to pay the loaners back: your assets speak for themselves.
- Flexible terms. You can decide on the term of your loan: most of them can last for up to a year, which gives you plenty of time to get enough income to pay everything off.
Whether you need a loan to start or expand your business, asset-based lending is a quick and secure way to get the money you want.
How Collateral Loans Work
Let’s take a practical scenario to illustrate how asset-based lending works. Imagine that there is a small business owner in NYC who plans to invest in a new marketing campaign. The money is tight, but this person really wants to hire one of the best advertising agencies to help them.
Appealing to banks means waiting for approval and encountering nausea-inducing bureaucracy. Collateral loans, on the other hand, can cover the needs of this business owner in a couple of days while giving them a sense of security.
This is what happens next:
- Asset evaluation. The owner selects an item or items from their assets that cost, say, $20K in total, and brings them to one of NYC’s credible ABL providers for appraisal.
- Loan offer. After the appraisal is done, the provider makes an offer: usually, it comprises 60-80% of the asset’s actual worth.
- Terms of agreement. Both parties agree on the terms under which the owner will have to pay to get their assets back.
- Secure storage. The assets are stored in secure facilities, waiting for their owner to return.
- Funds release. The owner receives the money they agreed on within a day.
If the business owner succeeds with their marketing campaign and earns the income they wanted, they’ll be able to pay the sum of the loan and get their asset back. If they fail for some reason, the asset will be resold. That’s it: there will be no growing interest rates, no legal nightmares or threats.
Why Asset-Based Lending Is Gaining Popularity in 2025
Due to the ongoing tense global situation caused by post-COVID effects and the results of armed conflicts, many small businesses are facing drastic ups and downs. They might be earning a fortune today and losing it tomorrow, so asset-based lending is a way that can help them stay afloat during their lowest points.
In addition, high-end goods are gaining even more prestige now, particularly in NYC, known for its multiple businesses and love for luxury. Personal items can be turned into expensive assets that help your business flourish, and many people are already using them to their advantage.
Find reliable and reputable lenders in NYC and schedule an appraisal visit. Receive favorable terms and get the money you need, knowing that it won’t affect your credit score and that the risks you’ll face will be minimal.
