Revolving Credit for New and Small Business Owners

May 10, 2018 by CNH Finance, LP in category “Financing”

Revolving credit provides a source of working capital which can be replenished. This gives businesses more purchasing power, and allows entrepreneurs to be less reliant on bank loans. However, getting access to revolving credit lines can be a challenge, depending on where you look.

Basic Lines of Credit

Every business can benefit from a line of credit. Banks and other traditional finance providers offer business lines of credit, but the stipulations are often prohibitive. New businesses frequently do not have high enough credit ratings to get unsecured credit lines. In these cases, businesses have to put up a lot of collateral to access capital, and the credit lines are rarely revolving. Additionally, traditional business lines of credit have very low spending limits. Some banks and institutions do offer revolving lines of credit with zero percent interest, but the devil is in the details. Special introductory revolving credit lines start out with zero percent interest for the first few months, and then those rates skyrocket. Introductory revolving credit lines are almost self-defeating, because businesses end up not using the available capital because the charges end up being astronomical.

Sensible Revolving Credit

New and small businesses need revolving credit lines which are sized to their needs and which offer more control. Asset based lending provides revolving credit structured around assets owned by our business. The process is simple. An in-depth analysis is made on assets, such as equipment, receivables, company vehicles, property, inventory, and more. The analysis of those items is used to create a revolving and affordable business line of credit. Asset based lending gives new and small businesses a reliable source of working capital without debt or restrictions hidden in the fine print.

Increased Spending Limits

As mentioned above, traditional lines of credit have low spending limits which rarely increase. Asset based lending offers revolving credit which is designed to grow with your business. As sales increase, if your business purchases new equipment, or buys larger facilities for operations, a new asset analysis will be performed, resulting in higher spending limits. Asset based revolving credit lines actually promote growth and increase proportionally with the success of your business.

CNH Finance offers the most comprehensive asset based lending program for revolving credit. Whether you are just starting out or you are focused on growth, we can help. Contact our offices today to learn more.

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