Collateral based financing is a lending option that generates a payout with pledged hard assets. This form of financing is also referred to as asset-based lending. Business owners can pledge property to secure funding with flexible payback options. This loan can also be secured with inventory, accounts receivables, and other balance-sheet assets.  

Funds obtained can be used for all intents and purposes concerning the business.

Revenue based financing is a lending option that generates an upfront payment in return for earnings made from your business in the future. Typically, revenue-based financing is not considered a loan and is not subject to the same rules and guidelines. Collateral or equity in exchange for the upfront payment isn’t involved – reducing the risk placed on the business owner. Revenue based financing is quick and easy with 24-hour payouts and exceptions for poor and adverse credit history. Repayment options depend on your business’ qualifications. You can qualify for a static and/or dynamic payback terms with no prepayment penalties unless otherwise specified. In fact, your business could qualify for a prepayment discount.