Hypothecation Financing
Asset-Based Lending Solutions. Unlock Capital While Retaining Ownership
Asset-Backed Loans & Credit Solutions
Hypothecation Financing
Hypothecation Financing is a loan arrangement where a borrower pledges assets such as securities, receivables, inventory, or real estate as collateral while retaining ownership and usage rights. Unlike traditional secured loans, hypothecation allows businesses and individuals to leverage valuable assets without having to sell them. This structure is common in margin lending, trade finance, real estate, and business loans, providing flexible capital solutions based on collateral value.
Competitive Interest Rates
5% – 12%
Flexible Terms
1 – 10 years
Varying Funding Amounts
$100,000 – $50,000,000
How Hypothecation Financing works!
Loan Amount: $100,000 – $50,000,000
Terms: 1 – 3 years
Rates: 5% – 12%
Collateral: Yes, such as securities, receivables, inventory, or property.
Qualifications: To qualify, most lenders will require the following:
- Credit score: Minimum of 600
- Businesses must have a business plan
- Valid ID and proof of address
- Financial documentation
Faster Funding’s
Hypothecation Financing: Access credit while retaining full use of your assets
With Hypothecation Financing, you can unlock liquidity from valuable assets without selling them. Whether you’re a business looking for working capital or an investor leveraging securities, this financing option provides flexibility and control.
The Benefits of Hypothecation Financing
Hypothecation financing allows businesses and individuals to access credit while retaining full use of their assets. By pledging vehicles, equipment, or inventory as collateral without transferring ownership, borrowers can maintain operations and cash flow without disruption. This type of financing typically offers lower interest rates than unsecured loans, flexible repayment terms, and quick approval based on the asset’s value. It’s an efficient way to leverage existing assets to secure funding for growth, expansion, or working capital needs — all while keeping control of your property.
- Retain ownership and use of your pledged assets
- Access large loan amounts with flexible structures
- Common in margin lending, trade finance, and real estate loans
- Rates and terms improve with stronger credit and higher-value collateral
- Suitable for business expansion, working capital, or investments
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To qualify for Hypothecation Financing, applicants generally need to meet the following:
- Valid collateral (securities, receivables, inventory, or property)
- Minimum credit score 600+ (higher scores improve approval odds)
- Business plan (if financing is business-related)
- Identity verification (government-issued ID, proof of address)
- Financial documentation (tax returns, bank statements, or business financials)
How It Works
- Apply with details of your collateral and financing needs
- Collateral is evaluated (e.g., market value of securities, receivables, or inventory)
- Loan terms are set based on collateral value and borrower profile
- Funds are disbursed while you continue to use and own your pledged assets
- Repay over time while collateral remains hypothecated until full repayment
How We Work. Our Mission & Values
At Faster Funding, we’re committed to helping businesses of all sizes succeed. Our Hypothecation Financing programs are just one of the many ways we’re working to make that happen.
To learn more about our Hypothecation Loans or to apply for other types of funding, please contact us. Our team of experts is standing by to help you find the perfect lending solution for your business.
Faster Funding is Here to Help
Frequently Asked Questions
We understand you are probably wondering how this all works. Here are some key topics to help you make informed decisions to unlock your business’s growth opportunities.
Do I lose my asset if I use hypothecation financing?
No, you retain ownership and use of the asset, but if you default, the lender has the right to seize it.
What types of collateral are accepted?
Real estate, securities, receivables, and business inventory are the most common.
Is this the same as a mortgage or pledge?
No. In hypothecation, the borrower retains possession and usage of the asset, whereas a pledge often transfers possession to the lender.
Who uses hypothecation financing?
Businesses for trade finance or working capital, investors for margin lending, and individuals for liquidity against property or securities.
Get Started
Contact us to learn more about our hypothecation loan programs. Our team of experts is standing by to help you find the perfect financial solution for your business.
