Finding affordable asset based lending in Greenwich, CT can be challenging for new and small business owners. Most traditional lending institutions have prohibitively high requirements to…
Traditionally, when businesses are seeking funding for any reason, they turn to loans. Traditionally loans provide funding, but compromise credit scores while simultaneously placing debt on the balance sheets. While many entrepreneurs fall into this trap year after year, many business owners are looking for zero debt financing solutions and wondering if it is possible.
Yes, it is!
The Problem With Loans
Traditional loans provide working capital while placing debt on the balance sheets and compromising credit ratings. If a short-term loan is used to cover immediate expenses, like payroll, it may create a larger problem. Once the money runs out, the debt remains, and the initial cash flow problems may cycle back with the added burden of payment schedules, with interest. Finding zero debt financing may seem like hunting for a needle in a hay stack, but it is possible.
Asset Based Lending
Asset based lending provides a zero debt solution which can potentially increase your business credit ratings. Asset based lending is a means of leveraging the various items you own as a business, and structuring a line of credit around the value of those assets. Assets such as commercial property, facilities, equipment, vehicles, inventory, and receivables are all taken into account, and used to create a revolving line of credit for your business. There is no debt. Business credit ratings are not compromised. Instead, a zero debt line of credit is created which can be drawn from as needed. This extra source of working capital is designed to ensure long-term success, and a constant source of working capital without needing to take out bank loans.
The Zero Debt Financing That Grows With Your Business
Asset based lending is designed to grow proportionally with your business. As your business acquires new equipment, moves into larger facilities, performs mergers or buy outs, or increases the volume of receivables, the amount of financing available will also increase. Asset based lending is the only zero debt solution which promotes growth and success without saddling business owners with unnecessary debt.
Learn More About Zero Debt Financing
At CNH Finance, we provide asset based lending businesses located locally, as well as across the country. If you want to learn more about our zero debt financing solutions, contact our offices today. We will work with you to free up the hidden value off your assets, and provide the best line of credit available.