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…
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 living centers are experiencing a strain on cash flow. However, some clever Newport Beach, CA assisted living centers are leveraging the value of their fixed assets for reliable and renewable funding.
Asset Based Lending For Newport Beach, CA Assisted Living Centers
In order to get a reliable source of working capital, without the debt and other restrictions of loans, Newport Beach, CA assisted living centers are using asset based lending. Despite the name, asset based lending is not a loan. Instead, asset based lending is a revolving line of credit structured around the intrinsic value of fixed assets. In the case of Newport Beach, CA assisted living centers, fixed assets include vehicles, equipment, inventory, receivables, and even real estate which is owned by facility. The value of these items is turned into a revolving business line of credit. Assisted living centers can draw from this line of credit as needed, instead of taking out bank loans and placing liabilities on the balance sheets.
Minimizing Debt For Newport Beach, CA Assisted Living Centers
As stated above, asset based lending is not a loan. There is no debt, and business credit ratings are not negatively impacted. This is ideal for Newport Beach, CA assisted living centers that are already juggling multiple loans, or those that do not want to further impact their credit ratings. As capital is used from asset based lending, the assisted living center repays the amount, just like a regular line of credit. This gives assisted living centers an ongoing and renewable source of capital. As an assisted living center gets new equipment, more vehicles, or sees a rise in receivables, the amount of financing available will also increase to promote long-term success.
Asset Based Lending Offers Versatility
Loans usually have one intended purpose. Asset based lending, on the other hand, can be used for anything from purchasing medical supplies, advertising, and anything else the center needs. Having access to increased purchasing power helps Newport Beach, CA assisted living centers thrive in an industry that is only going to see more clients with each passing year.
At CNH Finance, we help Newport Beach, CA assisted living centers get the working capital solutions they need, without having to rely on debt-based structures or the red tape of traditional lending channels. Contact us today to get started.