Tech startups may be lean and agile, but the initial cash outlay for equipment can be expensive. Everything from servers on down to high end artists tablets can be a fairly hefty investment. Without a doubt, the cost of equipment can really eat into any budget. However, there is a way to leverage that equipment to get a financial edge over other tech startups.

Lines Of Credit For Tech Startups

Every piece of equipment has an intrinsic value. Asset based financing taps into that value to create a revolving business line of credit. This gives tech startups an added source of working capital without the restrictions of traditional loans. The revolving line of credit has no specific designation, so it can be used for marketing, hiring additional staff, purchasing supplies, putting on demonstrations at trade shows, or anything else needed to realize a vision successfully.

Reduce The Need For Loans

The one thing all tech startups want to avoid is taking on unnecessary debt. Asset based lines of credit are not like traditional loans. There is no debt, no impacted credit ratings, and the requirements are easy to meet in order to qualify. Asset based lines of credit are based on a deep analysis of the equipment owned by tech startups, often finding value in items which are normally overlooked by banks and other traditional lending institutions. From there, tech startups can access the line of credit as needed, and then replenish the balance with monthly installments. Asset based lines of credit provide a renewable source of capital.

Financing That Grows With Your Vision

Tech startups often find the need to expand as demand from customers increases. The demand usually requires purchasing new equipment and in greater quantity for an increased workforce. As new equipment is acquired, and as sales increase, the amount of financing available through an asset based line of credit also grows. Asset based financing gives tech startups the capital they need without bogging them down with debt and other restrictions.

Get The Extra Capital You Need

CNH Finance specializes in asset based lines of credit. We help tech startups and emerging businesses get the capital they need without having to navigate the red tape of banks and traditional lending institutions. If you are looking for working capital, but want to avoid taking on unnecessary debt, contact the experts at CNH Finance today.