Monetizing Receivables For Growth Capital

December 29, 2016 by CNH Finance, LP in category “Financing”

Monetizing receivables is nothing new to businesses. Many businesses use some sort of factoring service to get paid instantly without having to wait on customers. However, there is another form of monetizing receivables which provides long term growth capital for businesses of all sizes.

Monetizing Receivables

Your receivables have a total value. Depending on how long your business has been up and running, the value of the receivables can be averaged over months, or indicate trends to show growth projections. Instead of trading in your receivables for instant cash, you can monetize them to create a revolving line of credit.

Asset Based Lending Is Structured Around Receivables

Asset based lending gives business owners access to an additional source of financing which can be used for growth, or simply to increase purchasing power. While asset based lending takes into account the value of items such as equipment, owned real estate, and inventory, receivables play a major part of the program. By monetizing receivables for asset based lending, the line of credit created does not disappear once the receivables are paid. In fact, asset based lending promoted business growth.

Using Receivable To Grow Your Business

Asset based lending is a revolving line of credit. Business owners can use as much or as little of the capital, depending on their needs, and then repay the amount used, much like a regular credit card. By monetizing receivables, business owners provide the basis for financing. As business increases – especially for new and small companies – the total value of receivables also increases. At this point, the increased total value of the receivables can be reconfigured to more accurately reflect improved sales and business growth. The increased spending limit on the asset based line of credit help to provide sustainable growth capital to businesses spanning a wide range of industries. While not all businesses utilize equipment, or own their facilities, they all have receivables.

Get The Capital You Need

If you are thinking about monetizing receivables to create an extra line of business credit, talk to the experts at CNH Finance. We will go over assets that traditional lending channels do not, in order to get you the most capital for the value of your receivables. We provide asset based solutions to small and growing businesses to help entrepreneurs bring their operations to the next stage of development for long term success.

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