Lumber Industry Seeking Capital for Domestic Growth

October 25, 2018 by CNH Finance, LP in category “Financing”

With new trade agreements in place, the lumber industry in the United States is experiencing a new surge. This year, the lumber industry saw prices hit a record high and an increased demand from customers. Indeed, the recent spike in demand has lumber companies rolling out plans for growth, but they are still wary of debt-based solutions.

Loans Hinder Growth for Lumber Industry

Even if the surge in customer demand for lumber is sustained, using loans for growth is a financially risky move. Taking on debt for the sake of growth hinders momentum. Instead of a single-use loan that places debt on the books and impacts credit ratings, business owners in the lumber industry are looking for a better solution. They need a reliable and renewable source of working capital without the burden of debt. In this new economy, old-fashioned loans simply do not offer the flexibility for growth that the lumber industry demands.

Finance Solutions that Promote Growth

If traditional loans are not in the picture, lumber companies have to start thinking outside of the box. Fortunately, asset based financing checks the boxes for accessibility, renewable funding, and no debt. Asset based financing is a revolving line of credit structured around the value of lumber equipment, land, receivables, inventory, and vehicles owned by lumber companies. The revolving line of credit is debt-free. Lumber companies can draw on the line of credit as needed, and the amount of capital available is replenished as the balance is repaid. This gives lumber companies the ability to roll out plans for growth without hindering momentum with debt.

Perpetual Growth

With the rising demand for lumber in the United States, the industry needs a solution that will provide increased funding with business growth. Asset based financing provides just what the lumber industry needs. As lumber companies grow, acquire new equipment, expand inventory, and see more sales, the amount of available working capital will also increase. This provides ongoing and increasing funding that helps to ensure long-term success.

CNH Finance specializes in working capital solutions for lumber companies of all sizes. If your lumber business needs a reliable source of capital to maintain or grow operations, contact the experts at CNH finance today.

Image for 'Healthcare Mergers: Making a Smooth Transition'
Healthcare Mergers: Making a Smooth Transition

Mergers and acquisitions in the healthcare industry are not uncommon. In many cases, healthcare mergers provide wider coverage and quality services to a larger population in need of…

Image for 'Newport Beach, CA Assisted Living Centers: Finding Reliable Funding'
Newport Beach, CA Assisted Living Centers: Finding Reliable Funding

The populations in Newport Beach, CA assisted living centers are on the rise. Between staggered payment schedules and payments from insurance providers, many Newport Beach, CA assisted…

Image for 'Alternative Financing: When Bank Loans Aren’t In The Picture'
Alternative Financing: When Bank Loans Aren’t In The Picture

For many new and small business owners, bank loans are not a viable option. Fortunately, there is a form of alternative financing which can provide the working capital business owners…

Image for 'Turning Your Inventory into a Renewable Source of Funding'
Turning Your Inventory into a Renewable Source of Funding

Manufacturers, retailer, pharmacies, import/export companies and more have sizable inventories. After all, selling those products is what generates revenue and boosts cash flow. However,…

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

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

Steve Silver

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

Rossi Felix