Small business owners are inundated with the philosophy that they cannot thrive or grow without borrowing capital from traditional lending channels. Loans, merchant cash advances, and…
Newport, CA dental practices are rethinking funding models. Gaining a strong foothold in today’s economic landscape can be challenging, and debt-based financing doesn’t help. More dental practices go out of business due to overwhelming debt, even when the list of patients and services received are high. To make a break from debt-based loans, Newport, CA dental practices are using a friendlier and more flexible solution.
Working Capital for Newport, CA Dental Practices
Finding a reliable and renewable source of working capital is a point of stress for Newport, CA dental practices. The need for supplies, marketing, updating equipment, and even covering overhead expenses all require working capital. When dental practices rely on loans, they receive finite amounts of financing accompanied by a lot of debt and impacted credit ratings. Loans are not renewable, and practices need something that can be replenished and which will grow with their practice. Some Newport, CA dental practices have even gone so far as to use cash advances for working capital. While cash advances may be advertised as being “debt-free,” they have a number of hidden fees, and the balance can only be repaid from a percentage of credit card transactions. This leaves a gigantic balloon payment with high interest rates after the terms expire. Dental practices in the Newport area need something more stable, which puts control in their hands.
Better Financing Options for Dental Practices
Throughout the Newport area, dental practices are breaking the debt cycle by using asset based lines of credit for working capital instead of loans. Asset based lines of credit provide dental practices with a renewable source of working capital. This financing program acts as a revolving line of credit structured around the value of assets such as equipment, receivables, vehicles, property, and more. Practices can access the line of credit as they need it, and once the balance is repaid, the amount of financing available is replenished. Unlike loans, asset based lines of credit grow with the success of dental practices. As receivables increase and as equipment is upgraded, the amount of capital available also grows, which promotes long-term success for dental practices.
CNH Finance offers reliable and debt-free working capital solutions for dental practices in Newport, CA. To learn more about the many benefits of asset based lines of credit, contact the team at CNH Finance today.