Purchasing supplies is a necessary part of regular operations and necessary for growth and seasonal rushes. However, even though purchasing supplies can impact finances, there are many…
Asset based solutions Have long been a staple for business owners trying to position themselves for growth. But what about new businesses? The truth is that most new businesses cannot get adequate funding through traditional lending channels to sustain themselves for long periods after launching. However, asset based solutions provide the working capital necessary to get a strong foothold in a competitive marketplace without having to navigate the red tape or deal with the rejections of traditional lending institutions.
Banks and similar institutions offer financing programs which have become harder to access over the years. The emphasis put on strong credit ratings, combined with a required history of excellent financials, can make it difficult for new businesses to qualify for even the most basic lending programs. Asset based solutions, on the other hand, offer continued financing for the duration of a company’s life, without the restrictive qualifications.
What Are Asset Based Solutions?
Asset based solutions create a revolving line of credit around the value of assets owned by business. For new business owners, these assets often include inventory, supplies, equipment, and receivables. The list of assets can be expanded to include company vehicles, real estate, and other items, as well. The revolving credit provided by asset based financing is treated like any regular business credit line. The best part is that, unlike traditional lending programs, there is no debt to negatively impact your business credit ratings, and asset based solutions offer room for growth.
Looking To The Future
Asset based solutions do not provide finite financing. When a business uses loans, the capital provided will run out, forcing owners to take out more loans, and take on more debt. Asset based solutions provide a revolving line of credit, which can be used as needed and then replenished, which gives business owners ongoing financing. Asset based solutions also grow with your business, by increasing the spending limit as the company acquires and improves assets and receivables. Many new businesses use asset based lines of credit for sustained financing in the early stages, and then used asset based financing as an extra source of working capital as it grows, to reduce the need for debt based loan structured further down the line.
Learn More About Asset Based Solutions
At CNH Finance, we specialize in asset based financing to help new businesses grow and thrive in today’s competitive economy. Contact our offices today to learn more.