Business budgets are normally centered around striking that delicate balance between maintaining regular operations and achieving steady growth. However, if you own a new or small…
Businesses across every industry are trying to gain a financial edge during the current economic upswing. Consumer confidence is high, so people are making more and larger purchases. B2B transactions are robust. The freight and transportation industries are hauling shipments as fast as they are ordered. The economic climate is perfect for businesses looking to take advantage of growth opportunities, provided they have the working capital to get the financial edge they need.
Loans Do Not Build Positive Momentum
The traditional stance of businesses used to be that if the economy was strong, it was a good time to take out loans for growth projects. We are in a much different economy than we were just a few years ago, and certainly different than we were prior to the crash of 2007. We do business faster. Technology and the way it is integrated into everything from cutting-edge medical procedures down to shipments of produce to our grocery stores means every industry is more connected and the data generated can be used to build successful growth strategies. We also do not know how long this uptick in the economy will last. Taking out loans and shouldering the accompanying debt is a big risk for growing businesses. If the economy stays the course, then the debt from loans will only hinder growth potential. If the economy stagnates or takes a plunge, businesses will be left with debt on the books and the inability to pay off the balance. On the financial side of things, businesses in every industry are entering new territory and traditional solutions are like trying to use a rotary phone to keep pace with today’s technological innovations.
Smart Solutions Give Businesses a Financial Edge
Growing businesses have to be able to run leaner, more efficiently, and more resourcefully to get the financial edge they need to succeed. Traditional debt-based loans are being left behind. Growing businesses have the vision to realize that sources of funding can be found within, instead of raking up liabilities on the balance sheet. In order to gain a financial edge in the current economic climate, businesses are leveraging the value of their assets to create substantial revolving lines of credit. Asset based lines of credit are structured around the value of receivables, equipment, inventory, and more. As a business grows and makes even more sales or improves equipment, the amount of financing also increases to keep the momentum going for long-term success.
CNH Finance offers the most comprehensive asset based lines of credit to businesses spanning all industries. Avoid getting trapped by debt-based loans and get a financial edge with CNH Finance today.