Construction companies face a number of challenges when trying to secure financing. Traditional lending institutions, due to red tape, often take too long when processing loan requests,…
Greenwich private lenders offer a wide range of financing programs to small businesses, as a means of sidestepping the need for traditional loans. However, not all lenders are the same, and there are a few things business owners should know before entering a financing agreement.
Moving Away From Traditional Lending Institutions
While traditional lending institutions, such as banks, have their place, their working capital programs are not always the right fit for small business owners. Traditional lenders also work off of an internal chain of command, which means loan requests get passed from department to department for approval, and can cause delays even missed opportunities for business owners. Additional, many small business owners would rather avoid debt whenever possible, and preserve credit ratings. Local entrepreneurs are looking to Greenwich, CT private lenders as a means to bypassing the red tape, delays, and debt associated with traditional loan vehicles.
Greenwich Private Lenders Are Not Always More Affordable
Private lenders in Greenwich offer a wide range of financing programs to local businesses, but they are not always more affordable than traditional loans. Cash advances, for example, are advertised to Greenwich are business owners as debt-free alternatives to loans, providing flexibility and fast funding without the need to either collateral or credit checks. What business owners are not told, however, is that because cash advances do not involve collateral, the interest rates are usually higher than other programs, including conventional loans. On the matter of flexibility, it is true that cash advances from Greenwich private lenders do not have payment schedules. Instead, a small percentage of each sale goes toward repaying the balance of the advance. Yet that small percentage is designed to leave entrepreneurs owing a large sum when the terms of the agreement end, which, when combined with interest on the total balance, can actually hurt business finances more than they help.
There Is A Better Alternative
Instead of choosing an expensive financing program from Greenwich private lenders, savvy business owners are opting to use a program which offers a source of working capital without the hidden fees and cost-prohibitive balloon payments of cash advances. Asset based financing solutions create a revolving line of credit for businesses, using the value of fixed assets for financing. Asset based financing solutions act as any other revolving business line of credit, but the difference is that as a business improves and grows, the amount of funding available also increases. There is no debt involved, and businesses can access what they need, without being forced to take on a large amount of capital and worrying about paying off the entire balance.
CNH Finance offers asset based financing solutions which provide cost-effective funding beyond programs offered by other Greenwich, CT private lenders. Contact our offices today to learn how asset based financing can help your business achieve long-term growth and success.