Seasonal Businesses: Getting Access To Working Capital

December 7, 2017 by CNH Finance, LP in category “Financing”

Seasonal businesses need access to working capital to meet the customer rush, and have access to working capital to stay stocked and maximize sales. While traditional business loans have filled that need, asset based lending offers a more flexible solution.

Seasonal Businesses Lose Momentum With Loans

Short term loans have been the “go to” solution for seasonal businesses. However, taking on debt can cause seasonal businesses to lose momentum into the following year. Taking on unnecessary debt in order to attain working capital is self-defeating. Regardless of the sales racked up over the next month or so, seasonal businesses will spend the next year paying off the balance. This can hinder growth and impact credit ratings to the point that short term loans become cost ineffective. Certainly there must be a more efficient way for seasonal businesses to get access to a reliable source of working capital without taking out loans or digging into their own pockets?

Asset Based Solutions For Seasonal Businesses

Asset based financing offers a solution for seasonal businesses without the restrictions of traditional short term loans. Asset based financing provides a revolving business line of credit structured around the inherent value of equipment, vehicles, inventory, receivables, and more. Businesses are able to take advantage of this line of credit to promote seasonal sales, hire additional staff, and remain stocked for the duration of the holiday season.

Asset Based Financing Is Not A Loan

Asset based solutions do not place unnecessary debt on the books. Instead, the revolving line of credit can be accessed as needed, instead of having to take the full amount all at once. Business credit ratings are preserved, and the business only owes on what is accessed, plus a nominal interest fee. Asset based financing solutions act as a regular revolving business line of credit, except the spending limit is higher, allowing businesses to take advantage of seasonal opportunities and maximize sales without debt.

Get the Funding You Need

At CNH Finance, we specialize in asset based lending solutions. Whether you want to ensure that your business doesn’t run out of highly sought-after items for the holiday season, or if you need additional temporary staff, or if you want to advertise sales to extend your reach, we can help. Contact our offices today to learn more about asset based lending, and how it can help you seasonal business.

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