Debt based financing seems to be the standard method for everything from purchasing a car or house to launching a business. However, the economic landscape has changed drastically over…
Even in a strong economy, businesses can experience a bit of turbulence. Accidents, miscalculations, and more can cause a business to suddenly become financially unstable, or prevent newer businesses from becoming profitable. Businesses in Bethesda, MD are not immune to these situations, which cause entrepreneurs to seek turnaround financing solutions.
Why Businesses Become Unprofitable
Businesses become unprofitable for some fairly common reasons. In a depressed economy, customers are hesitant about spending money, which leads to lower sales. In an accelerated economy, businesses may still have a tough time accumulating working capital to take action on growth-focused projects. Another reason why businesses become unprofitable has a lot to do with lenders and liabilities. Traditional lenders have a limit on the amount of capital they can provide to Bethesda, MD businesses. The amount of financing available often falls short of the capital needed to thrive and grow in a competitive marketplace. This can lead to businesses taking out multiple loans, which can place liabilities on the books that overshadow the revenue being generated.
For businesses going through an unprofitable period, taking on more loans is not the right answer. More debt and impacted credit ratings will only hasten the slide into bankruptcy. In many cases, Bethesda area businesses need a reliable and renewable source of working capital to get back on track. Turnaround financing needn’t be cumbersome or have repercussions later on down the road. In fact, many Bethesda, MD businesses are leveraging what they already own in order to get the capital they need to become profitable.
Leveraging Assets for Turnaround Financing
Instead of going into debt with traditional lenders, Bethesda, MD businesses owners can get a revolving line of credit, which increases purchasing power and provides a source of working capital to get past a rough patch. The revolving line of credit is structured around the inherent value of owned assets, such as equipment, vehicles, receivables, and more. Because this form of turnaround financing is revolving, the source of capital is renewable.
Learn More about Turnaround Financing for Bethesda, MD Businesses
CNH Finance provides comprehensive turnaround financing solutions for Bethesda business owners. If you are trying to navigate your business through choppy waters, contact our offices. Our team will work with you directly to provide a turnaround financing solution tailored to your needs so your business can become profitable.