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.


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.

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