Growth Capital: A Renewable Resource Without Debt

February 8, 2018 by CNH Finance, LP in category “Financing”

It is vital for every business to grow in today’s marketplace. Long period of stagnation without growth capital frequently cause businesses to go under with increasing strains on internal finances. Often, businesses turn to loans to acquire growth capital, but the burden of debt is more of a hindrance that prevents success. Fortunately, there is a source of renewable growth capital without the restrictions of traditional loans.

Loans Are Not The Solution For Business Growth

In the past, businesses would rely on bank loans and similar debt-based vehicles to get growth capital for expansion, to complete internal projects, or roll out new products and services. However, the time it takes to process traditional loans causes businesses to reset timelines, or miss time-sensitive opportunities completely. Additionally, the debt placed on the books prevents businesses from achieving their full growth potential. The burden of debt and impacted credit ratings means additional revenue due to growth goes right back to the bank in order to repay the loan.

Growth Capital Without Debt

Over the past few years, businesses have been finding growth capital by leveraging their fixed assets. Receivables, equipment, vehicles, real estate, inventory, and more are being used to generate a renewable source of growth capital without the burden of debt. Asset based lending uses the inherent value of fixed assets to create a revolving line of credit. The line of credit allows businesses to access the capital they need for growth, without having to take one lump sum. Capital is accessed, then the balance is repaid, just like any other revolving business line of credit. Unlike loans with their finite amounts of capital, asset based lending is renewable, giving businesses an ongoing source of growth capital.

Financing That Improves With Your Business

Asset based lending is the only form of growth capital that increases as your business improves. When your business grows, makes more sales, acquires more equipment, and expands other operational aspects, the amount of financing available through asset based lending also increases. Asset based lending is designed to promote growth and success for the long run.

At CNH Finance, we specialize in asset based lending for businesses of all sizes, across all industries. Our team will perform an in-depth analysis of your assets to unlock the most value and provide the largest line of credit possible. Contact our offices today and access the growth capital you need.

Image for 'Recession-Resistant Business Financing Solutions'
Recession-Resistant Business Financing Solutions

The economic climate is currently strong. Businesses are experiencing growth, and entrepreneurs are capitalizing on that growth to maintain forward momentum. However, anyone who has been…

Image for 'Manufacturers And ABL: Growth Without Loans'
Manufacturers And ABL: Growth Without Loans

Manufacturers who are trying to position themselves for growth require a good source of working capital. Large and unexpected orders can place a strain on finances and require a shift in…

Image for 'Business Credit: Which LOCs Have the Most Benefits?'
Business Credit: Which LOCs Have the Most Benefits?

Business credit provides companies with a source of capital, usually without the restrictions of traditional loans. Yet even within the realm of business credit, there are different…

Image for 'Medical Practices: Using Asset Based Lending For Working Capital'
Medical Practices: Using Asset Based Lending For Working Capital

Medical practices have to maintain a careful balance between receivables and expenditures to retain the necessary capital for operations and growth. Many medical practices, from…

CNH Finance
24 East Ave #1285
New Canaan, CT 06840
Phone: (203) 266-3210

Business Development
Long Beach, CA 90803
Phone: (562) 833-7815

Business Development
3334 E. Coast Hwy, Suite 541
Newport Beach, CA 92625
Phone: (714) 520-1788

Melinda Ficek
mficek@cnhfinance.com

Maryland Office
3 Bethesda Metro Center, Suite 723
Bethesda, MD 20814
Phone: (301) 529-9993

Steve Silver
ssilver@cnhfinance.com

Business Development
5050 Quorum Drive, Suite 700
Dallas, TX 75254
Phone: (972) 687-9157

Rossi Felix
rfelix@cnhfinance.com