Whether you are a new business in need of funding or your small business struggles to maintain a predictable cash flow, our team at the Commercial Finance Group is here to provide you with the solutions you need. We specialize in helping small businesses who have been deemed “unbankable.” For these companies, traditional lending methods are not the right fit for the time being. Until traditional lending is accessible, we operate as a bridge to fill the gap. We will work with you to determine what form of funding is an ideal solution for your company as it currently stands and your company as it stands in the future.
One such lending method we employ is called asset-based lending. If you have heard about this lending method before and you are interested in finding out if it is the right fit for your small business, we are here to help. Check out how asset-based lending works and find out more about the unique benefits it offers.
Leveraging What You Have
Asset-based lending is a unique method for improving cash flow for small businesses. In order to receive funding, your company will pledge assets as collateral. These assets will allow you to access funding when traditional lending methods won’t. For example, if your company has erratic earnings, it can be hard to receive a loan based on your cash flow. If traditional lending institutions have denied you loans because of this, asset-based lending can be a great alternative option.
The specific terms and conditions of the asset-based loan will vary depending on the assets put forth as collateral. For example, if your company pledges liquid assets to a lender, you will receive a higher loan-to-value ratio. Because a liquid asset can easily be turned back into cash, a lender is prone to valuing this at a higher rate. Conversely, if you pledge assets that are harder to convert back to cash, you will receive less of the value of the assets.
While asset-based lending is often associated with companies who are unhealthy, the reality is that this lending option is utilized by many small to mid-sized businesses who are going through rapid amounts of growth. This lending option can be ideal during this period when cash flow is erratic and more capital is needed to fuel further growth. If your business is contemplating asset-based lending as your funding choice, the best thing you can do is speak with an experienced team member at the Commercial Finance Group to learn more about the specifics of how asset-based lending would work for your particular company.
Key Benefits For Your Small Business
Asset-based lending is a chosen form of funding for a variety of reasons. As mentioned above, it can be an ideal choice for a company that has been denied traditional funding. However, there are a variety of other benefits to this lending solution outlined below.
Immediate Operating Capital
When you opt for asset-based lending, you can enjoy immediate operating capital, saving you from the hassle of waiting on collections of accounts receivables. This will ensure you can continue to grow your business and handle the monetary needs of your company.
Funding Through Seasonal Fluctuation
Does your business go through seasonal fluctuations? If so, asset-based lending can help to provide you with a steady and predictable cash flow. Seasonality can make business modeling extremely difficult, particularly during the early stages of a company’s growth. Utilize asset-based lending to fuel your startup.
Fewer Covenant Restrictions
Because of the transparent reporting between borrower and lender in asset-based lending, there are fewer covenant restrictions when compared to other options. This allows you to have much more flexibility in how you utilize your funding and the way you fuel growth for your small business.
Customizable Solution
Asset-based lending can be customized to meet your business’ specific needs. This allows you to create a plan that will not only help you presently but will also empower you to grow your business and achieve future goals.
Work With Our Team
If asset-based lending sounds like the right solution for your small business, we invite you to reach out to our team to learn more. We are equipped with years of industry experience and a staff who is passionate about helping businesses achieve the path back to bankability. The process will be simple.
- Reach out to our team. It all starts with you contacting us for more information.
- We get to know you. The next step will involve us getting to know you and your company. We will take the time needed to truly understand who you are, what your company’s goals are, and what specific needs you currently have.
- We offer solutions. After we understand your business, we will provide you with the funding solutions we think will best meet your needs. We will take the time to walk you through these choices to determine which one is the best fit.
- We help you plan. Finally, we want your lending solution to be a jumping off point. We want to help you create a plan that will allow you to grow your business, meet future goals, and eventually bring your company back to the place you want to be in.
If you have been looking for quick business loans and have had no luck, don’t despair. Reach out and learn more about the unique funding solutions provided by the Commercial Finance Group. We look forward to working with you to improve your cash flow.
