What Are The Most Valuable Business Assets?

November 10, 2016 by CNH Finance, LP in category “Financing”

Like private individuals, businesses also make investments to improve their overall worth. Smart investments go a long way toward improving credit ratings, increasing the amount of financing received from lenders, and ensuring the most competitive rates on said financing. Businesses also leverage investments for asset based lending, which acts as a growing line of credit structured around the value of property owned by a business. However, not many entrepreneurs weigh business assets equally, and some even overlook valuable business assets which are generated internally when trying to get long-term funding.

Commercial Real Estate

Whether entrepreneurs purchase land and facilities for their own companies, or property for others to rent, investing in commercial real estate is a great way to diversify business assets. Owning commercial real estate is one of the few business assets that actually appreciates over time, and can be improved to increase the overall value. Property investments are one of the strongest assets a business can have in its portfolio.

Equipment

While equipment does depreciate over time, due to new technology, improved models, and simple wear and tear, it is an integral business asset which can be used as collateral, or as part of the valuation for asset based lending. When financing is structured around business assets, the resell value of equipment is looked at first, followed by condition, and specialization. Construction companies, manufacturers, healthcare providers, restaurants, and IT businesses all use highly specializes equipment, which can be used to establish asset based lines of credit.

Receivables

It should come as no surprise that invoices are important business assets. After all, it is a proof of sale, and means revenue is coming in to create a healthy cash flow. However, many entrepreneurs overlook receivables as a valuable asset to get extra business financing. The overall value of receivables provide a solid foundation for asset based lines of credit. This revolving line of credit can grow with a business as sales increase, offering an extra source of capital in addition to regular payment from customers for goods and services rendered.

Get Your Business Assets Evaluated Today

At CNH Finance, we specialize in evaluating business assets in order to provide customized solutions to ensure growth and success. Contact our team today to get started. We have the capital resources to provide asset based lending for businesses across all industries – from large manufacturers to seasonal businesses, and those start-ups just getting off the launchpad. Whether you need working capital, growth financing, funding for a leveraged buyout, or a special situation, CNH Finance has you covered.

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