Anvil Secured Funding

Frequently asked questions

• How does a secured funding solution benefit businesses?

  Secured funding, a type of loan in which the borrower offers collateral in case of default, is a popular choice among individuals and businesses due to lower interest rates, decreased risk, and flexibility. As with many financial markets, secured funding firms face uncertainties regarding pricing, regulations, competition, and more. A secured funding solution simplifies and automates the trading and risk management processes, making it easier, faster, and cheaper for firms to manage.

  The right solution allows firms to view simplified, real-time data, workflows, and key performance metrics to support order management while unifying all trade processing across all available markets in a single location. Scalability allows firms of all sizes to benefit from secured funding solutions and cloud technology offers 24/7 access from any device, anywhere in the world.

  A secured funding solution offers firms the necessary technology to accelerate business without overstretching resources.

• What are the risks associated with secured funding?

  Secured funding, also called collateralized lending, offers financing arrangements to individuals and businesses looking to raise capital to support growth. Borrowers put up collateral—like property or equipment—to secure a loan, which provides lenders with extra security in the event of default. Secured funding can benefit both parties but also comes with certain risks.

  The most significant risk for both borrowers and lenders is tied to collateral. If a borrower defaults, the lender can seize and sell the pledged collateral to regain losses. This may disrupt the borrower’s business operations or lead to extra costs associated with monitoring and maintaining collateral value. Lenders face the risk of being unable to regain losses if collateral is potentially damaged, lost, or declines in value.

  ION’s secured funding solutions help mitigate these risks with real-time data and key performance metrics to support order management. Reach out to one of our experts for a live demo of how our solutions support risk management practices.

• Can secured funding solutions be used for various business needs?

  Secured funding is a broad term for an arrangement in which a borrower pledges assets as collateral to secure a loan. The collateral protects the lender’s interests in the event of a default. There are varying types of secured funding options and reasons why individuals or businesses may seek this option. This option is favored because of its flexibility in both loan tenure and repayment options and as a stable financing solution to assist with business growth.

  Lenders may accept the following as collateral:

  • Real estate and land
  • Equipment, machinery, and vehicles
  • Inventory, including raw materials or finished goods
  • Accounts receivable or outstanding invoices
  • Cash savings or investment portfolios
  • Personal assets

  A secured funding solution handles a firm’s order management, trade processing, and risk management—all in a single location. Access to real-time data and workflows smooths transactions and highlights key performance metrics so firms can better cater to clients’ needs. ION experts are available to answer questions and give live product demos.

• What should businesses consider when choosing a secured funding solution?

  A quality secured funding solution will automate order management, trade processing, and risk management in a single, unified system. Some features to look for when selecting a solution include:

  • Connectivity to all major global markets
  • Inventory and pricing management
  • Real-time insights and market data
  • Easy integration process and cloud hosting

  Modern platforms should digitalize and manage all requests and orders in one OMS solution, enabling traders to reply with the best prices and execute trades in a single click. The right solution simplifies monitoring trades, collateral, risk, and more.