Newport Beach, CA Manufacturers Are Finding New Sources For Working Capital

April 28, 2017 by CNH Finance, LP in category “Financing”

Newport Beach, CA manufacturers provide goods to a number of markets. From Mitsubishi Heavy Industries to small niche manufacturers, finding an extra source of working capital can be a challenge. Lately, many Newport Beach, CA manufacturers are turning to asset based lending to unlock the capital tied up in their fixed assets.

How Asset Based Lending Works For Newport Beach, CA Manufacturers

When Newport Beach, CA manufacturers use asset based lending, they are creating a revolving line of credit. An in-depth analysis is performed to determine the value of fixed assets owned by the business. In the realm of asset based lending, “fixed assets” include equipment, inventory, vehicles, facilities, receivables, and more. The line of credit created allows Newport Beach, CA manufacturers to access capital only as it is needed, rather than being forced to take a large lump sum, as with traditional bank loans. In order to qualify for asset based lending, all assets must be owned by the manufacturer. Leased equipment or manufacturing facilities do not fall under “fixed assets.”

No Debt Or Impacted Credit Ratings

Asset based lending is not a loan, despite the name. Instead asset based lending, as mentioned above, is a revolving line of credit. There is no debt placed on the balance sheets, and business credit ratings are preserved. This lets Newport Beach, CA manufacturers grow without having to place projects on hold due to debt owed to banks and similar lending institutions.

Financing That Grows With Your Business

Asset based lending is the only financing that truly grows with your business. As Newport Beach, CA manufacturers acquire new equipment, move into larger facilities, or see an increase in receivables, the amount of capital available through asset based lending also grows. Asset based lending is designed to promote growth and success for the long run. Traditional bank loans simply provide short-term capital with long-term debt.

Find The Best Asset Based Lending In Newport Beach, CA

CNH Finance is the leader in asset based lending for Newport Beach, CA manufacturers. Our in-depth analysis of your fixed assets includes many items which traditional lending institutions overlook. If you need an extra source of working capital that will grow with your company, contact our offices today. The experts at CNH Finance will work with you directly to create a customized asset based lending program to ensure long-term success.

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