Is It Possible To Get Business Financing Without Bank Loans?

December 15, 2016 by CNH Finance, LP in category “Financing”

For emerging and small business owners, getting access to business financing is not an easy obstacle to overcome. Usually, entrepreneurs are under the impression that business financing can only be accessed through loans, or by funding things out of pocket. Both solutions can quickly cause long-term problems. Fortunately, there is a solution which provides business financing for small businesses, without putting a strain on finances.

Using Traditional Loans

There was a time when loans were the “go to” for business owners in need of business financing. However, the financing landscape has changed drastically over the years. Traditional loans are harder to access for small businesses. Traditional lending channels have prohibitively high requirements, and entrepreneurs do not always have the perfect credit or strong financial history to qualify. On top of this, taking out loans for business financing compromises business credit ratings, and locks entrepreneurs into a rigid payment schedule. Payments on loans must be made as part of the agreement, regardless of sales figures from month to month. This can create a financial strain and prohibit business growth.

Using Personal Finances

One of the first rules of business is to never mix company and personal finances. When entrepreneurs are denied loan requests, many fall back to using personal funds to keep operations running. Lots of businesses fold because entrepreneurs have maxed out credit cards and drained their savings for business financing. Using personal finances is doubly harmful, because there usually is not enough capital to fuel the business, and it also puts personal finances in jeopardy in the process.

Getting Business Financing From Within

Instead of trying to navigate a sea or red tape to get a loan, or placing personal savings on the line, there is an easier way to get business financing. Businesses can use their own assets to create a revolving line of credit which can be used as needed. The line of credit does not compromise credit ratings, nor does it force business owners to assume additional debt. At its heart, the line of credit is structured around the value of items such as equipment, real estate, receivables, and more. This asset-based line of credit is a great solution for business owners who need a long-term source for business financing, without the constraints of a traditional loan.

Get The Business Financing You Need

If you would like to learn more about asset based lined of credit, so your business can grow and flourish, contact the experts at CNH Finance today.

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