For local business owners, finding adequate working capital solutions in Bethesda, Maryland can be a challenge. Bank loans are not always a viable option, for a number of reasons. Going…
Greenwich, CT medical distributors are experiencing a rising demand from their clients. As the population grows and more people enter their senior years, the need for pharmaceuticals, durable medical equipment, day-to-day supplies and more also rises. In order to keep up with the demand, Greenwich, CT medical distributors need a source of working capital that isn’t paired with debt.
Debt Financing Hurts Greenwich, CT Medical Distributors
It almost is a given that increased demand on medical distributors means more capital is necessary to fill client orders, purchase inventory, and even hire additional staff. Taking out loans and similar debt financing is not a cost-effective solution. Loans provide a finite amount of capital and place debt on the books. Once the capital is used up, the debt remains, which means more revenue is going to repay loans and interest. Greenwich, CT medical distributors need something flexible, renewable, and debt-free.
Renewable Financing for Medical Distributors
Instead of relying on the old standby of traditional loans, medical distributors in Greenwich, CT are using a more reliable source of working capital. By unlocking the value of assets such as equipment, vehicles, facilities, inventory, and receivables, distributors are creating a revolving line of credit. Asset based lines of credit provide a renewable source of capital without placing debt on the books or compromising credit ratings. Unlike loans which have a single purpose, asset based lines of credit can be used for anything. This means medical distributors can use the capital to purchase inventory, take on larger customer accounts, hire more employees, and provide goods more efficiently. As the balance is repaid, the amount of financing available is replenished, so medical distributors constantly have access to working capital without having to depend on old-fashioned loans.
Increased Business Results in More Financing
Asset based lines of credit are the only form of financing which actually increases as businesses grow. As distributors take on more clients, make more sales, and acquire more assets, the amount of working capital available also increases. Asset based lines of credit encourage growth instead of holding back distributors with cost-prohibitive debt.
CNH Finance provides asset based solutions to medical distributors throughout Greenwich, CT. Contact our office today to learn more about how our asset based lines of credit can help your business.