03/25/15

Small Business Loan Bracketology: Game 6, Asset Loans vs. ACH

ACH just came out of a big win over Peer-to-Peer, but faces a big challenger in Asset Loans that offers lower rates and better terms. Both options offer quick funding and flexible borrower requirements.

Remember, we’re seeing who has the best small business loan option for a restaurant with one year in operation, an average of $20,000 in monthly revenue and good credit. This business is looking for $50,000 for working capital and needs the funds within 3 weeks.

Final: ACH wins in regulation on a lay-up. Although Asset Loans offer better rates, they also require collateral that is worth as much, if not more, than the value of the loan. Many business owners are reluctant to tie up assets for the life of the loan.

 

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For Monday’s game, check out Local Banks vs Credit Unions.

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About the author

Erik Larson

Erik Larson frequently writes for Lendio about SEO, Digital Marketing, Social Media Marketing, Business Loans, and whatever else strikes his fancy. He can be found on and Twitter.

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