Alternative Financing: When Bank Loans Aren’t In The Picture

March 16, 2017 by CNH Finance, LP in category “Financing”

For many new and small business owners, bank loans are not a viable option. Fortunately, there is a form of alternative financing which can provide the working capital business owners need, without the debt or prohibitive requirements of traditional bank loans.

Why Bank Loans Do Not Always Work Out

The reason for seeking alternative financing typically falls into two categories. First, there are business owners who cannot meet the high requirements of banks and similar institutions. Few small business owners have the impeccable credit ratings or strong financial history to qualify for traditional financing programs. In the second group are those business owners who may have existing financial liabilities from previous loans, and those who want to sidestep placing debt on the balance sheets whenever possible.

Looking Within The Business

When seeking alternative financing, it is important to look at what resources are currently available to leverage for financing within your business, before resorting to loans. There are a number of alternative financing programs available, but only one taps the value of the business itself to create working capital without placing debt on the balance sheets.

Asset Based Lending

Asset based lending uses the value of things such as receivables, equipment, vehicles, inventory, real estate, and more to create a special business lines of credit. Asset based lines of credit are a form of debt-free alternative financing designed to help businesses become self-sustaining, without needing to use loans or other conventional funding programs. The alternative financing provided by asset based lending is a revolving line of credit, which can be used as needed, and then replenished, indefinitely.

Alternative Financing That Grows With Your Business

Asset based lending is the only alternative financing program that gets better with age. As a business grows or makes improvements, the line of credit from asset based lending will see an increase in the spending limit. Unlike traditional bank loans, asset based lending is a form of alternative financing that does not penalize success. Instead, assets based lending grows along with the business to ensure long-term success, every step of the way.

Get The Financing You Need

At CNH Finance, we specialize in asset based lending for businesses across all industries. From oil and gas, to transportation, healthcare, and even robust startups, our asset based lending program provides alternative financing for growth-focused entrepreneurs when banks are not an option.

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