Alternative Lending In Newport, CA For Small Businesses

November 30, 2017 by CNH Finance, LP in category “Financing”

Alternative lending in Newport, CA is quickly becoming the “go to” solution for local small businesses. Traditional loans have increasingly prohibitive requirements, and most small business owners prefer to avoid taking on debt whenever possible. However, not all forms of alternative lending are beneficial in the long run, and entrepreneurs should be fully informed before making a decision.

Why Entrepreneurs Prefer Alternative Lending In Newport, CA

Alternative lending came to the forefront at a time when banks were rejecting requests for small business funding. Since entrepreneurs were in need of financing, the inability to secure traditional loans threatened economic growth. In order to ameliorate this, private lenders in the Newport area started offering debt-free financing solutions with the flexibility local business owners were demanding to help stimulate growth and productivity. Finally, business owners were able to access the working capital they needed without going into debt, and credit ratings were no longer an issue. Of the programs for alternative lending in Newport, CA, two rose in popularity.

MCAs

Merchant cash advances, or MCAs, seemed like they were the ideal solution for every small business in Newport, CA. After all, MCAs providing working capital without debt, and there were no fixed payments. Many local businesses jumped at the opportunity to get merchant cash advances, only to find out there were more strings attached. Merchant cash advances are repaid through a small percentage of sales, but only sales paid for with credit cards. Merchant cash advances may not have payment schedules, but they do have terms. In most cases, the small percentage of credit card sales is not enough to pay off the entire balance within the time allotted in the terms, and then businesses are left with giant balloon payments, skyrocketing fees, and a number of other penalties laid out in the fine print of the agreement. It was not long before alternative lending in Newport, CA started to get a tarnished reputation.

Asset Based Lending

Asset based lending, on the other hand, offered alternative lending in Newport, CA which was far more down to earth. Asset based lending provides local businesses with a revolving line of credit. However, instead of arbitrary decisions from a board of lenders, the line of credit is structured around the intrinsic value of equipment, vehicles, receivables, and more. Small businesses in Newport, CA could get renewable funding without debt, and without having to deal with the red tape attached to either traditional loans or merchant cash advances. Additionally, as Newport area businesses acquire more fixed assets or make more sales, the line of credit also increases. Unlike traditional loans or merchant cash advances, asset based lending promotes continued, long-term growth.

Learn More About Alternative Lending In Newport, CA

At CNH Finance, we specialize in the preferred method of alternative lending in Newport, CA. Our comprehensive program for asset based lending provides a reliable source of working capital, while encouraging local businesses to grow and thrive in an increasingly competitive marketplace, without placing debt on the books. Contact our offices today in Newport, CA at 714-520-1788 to learn more.

Image for 'Purchasing Power: How Small Businesses Get A Stronger Foothold'
Purchasing Power: How Small Businesses Get A Stronger Foothold

Improved purchasing power opens many doors for small businesses. Having the capital on hand to run advertising campaigns, purchase supplies, hire extra help when needed and grow…

Image for 'Traditional Loans Are Not The Answer For Growing Businesses'
Traditional Loans Are Not The Answer For Growing Businesses

For the longest time, when businesses wanted to get past their growing pains and hit the next milestone, they turned to traditional loans. Unfortunately, in today’s business landscape,…

Image for 'Bethesda, MD Assisted Living Centers: Finding Renewable Working Capital'
Bethesda, MD Assisted Living Centers: Finding Renewable Working Capital

Bethesda, Maryland assisted living centers provide housing and services to an increasingly growing population. However, between staggered payment schedules, and the high cost of…

Image for 'Medical Equipment: Getting Financing For The Tools In Your Practice'
Medical Equipment: Getting Financing For The Tools In Your Practice

From small private practices to large healthcare center, medical professionals provide an invaluable service to people across the country. Unfortunately, the one thing all medical…

CNH Finance
24 East Ave #1285
New Canaan, CT 06840
Phone: (203) 266-3210

Business Development
Long Beach, CA 90803
Phone: (562) 833-7815

Business Development
3334 E. Coast Hwy, Suite 541
Newport Beach, CA 92625
Phone: (714) 520-1788

Melinda Ficek
mficek@cnhfinance.com

Maryland Office
3 Bethesda Metro Center, Suite 723
Bethesda, MD 20814
Phone: (301) 529-9993

Steve Silver
ssilver@cnhfinance.com

Business Development
5050 Quorum Drive, Suite 700
Dallas, TX 75254
Phone: (972) 687-9157

Rossi Felix
rfelix@cnhfinance.com