Alternative Financing

A mortgage loan is used to purchase a home, but it cannot be used to finance the construction of a new home. Builders and borrowers who would like to finance the building of a new home could apply for a general loan, or they could seek out a special type of financing called a construction loan.

Asset-based lending (ABL) is a type of business financing that takes into account a company’s assets when determining whether a borrower may be granted a loan or line of credit, rather than just its financial performance or credit history. Businesses might turn to ABL if they need funds quickly or have many assets and minimal cash flow.