Asset-Based Lending Grows in Popularity
The Wall Street Journal
February 2, 2010
By Kyle Stock
When the University of Alabama booked its trip to the college football national championship in December, Weezabi LLC went into a hurry-up offense.
The three-employee company—one of the few licensed to make "Crimson Tide" merchandise—needed 60,000 T-shirts. Without the time to huddle investors, Weezabi pledged as collateral part of its future revenue to FTRANS, an Atlanta-based lender and credit analyst.
"If it wasn't for that loan, we would have missed the boat on all of this hot-market stuff," said Weezabi's chief executive, Seth Chapman.
Asset-based lending, once considered a last-resort finance option, has become a popular choice for companies that don't have the credit ratings, track record or patience to pursue more traditional capital sources.
