When it comes to quick business loans or a fast way to improve business cash flow, one lending solution many young businesses turn to is asset-based lending. In a previous post, we discussed exactly what asset-based lending is and how it works. If you are interested in utilizing this form of funding, there are an array of unique features that might make it the right fit for your company’s needs.
Here at the Commercial Finance Group, we can help walk you through all the unique features of asset-based lending when compared to traditional lending options. We will help you determine if this is the right fit for your needs and we will work with you to create a game plan for using this funding solution to get your business on the right track. Read on to learn more about these unique features and reach out to our team for help any time.
Diving Into The Unique Features Of Asset-Based Lending
When traditional lending options fail, many businesses turn to alternative funding methods. This is often necessary for small or young businesses. The unique features of asset-based lending make this solution an ideal fix for these company types.
Funding For Rapid Growth Of Small Businesses
One unique feature of asset-based lending is that it provides funding for the rapid growth of a small startup. When a company is first beginning, it might go through a rapid growth stage. During this stage, more funding will be necessary to continue to fuel this upward trend. However, due to the lack of history as a company, it can be difficult for a business of this type to receive traditional funding. Most banks will want a solid history of business to back loans. In this case, asset-based lending can be an ideal solution. This money will help ensure a young business can continue to spike in growth with enough funding to fuel the process.
Making Use Of Your Current Assets
While your small business might be young and lack a proven track record of success, you might have other valuable assets on hand. Asset-based lending allows you to leverage this value to benefit your company’s growth. From machinery to invoices to real estate, your startup may have an array of assets on hand that can allow you to receive funding during this beginning stage of growth. Instead of feeling trapped while you wait for your company to establish clout, asset-based lending will provide you with an immediate solution to your funding needs. This gives you control of the situation, which means you can create a plan for immediate growth.
Flexibility In Your Funding Solution
Not all funding solutions are terribly flexible or catered to the specific company in question. However, asset-based lending is an extremely flexible option. Due to the transparent reporting involved and the constant monitoring between borrower and lender, this is a much more flexible form of funding than traditional loans. In many cases, asset-based lending is treated as a line of credit, which allows you to utilize as much funding as you need at the specific time you need it. This prevents you from taking out loans you don’t need, owing on extra interest, and being trapped in confining covenant restrictions. You can work with your financing team to ensure your asset-based loan is catered to your company’s specific needs, allowing you to only utilize this form of funding for as long as necessary.
Filling In The Gaps Of Seasonality
Is your small business operating within seasonal fluctuations? Seasonality can make it extremely difficult to fund your business as needed. This can lead to gaps in your cash flow, hindering the further growth of your company. If you battle the issue of seasonality in your company, asset-based lending can be the ideal fix. This unique funding solution will allow you to fill in those gaps, keeping your cycle of growth strong, even during your down seasons. Over time, this continued growth will eventually allow you to break free from the need for asset-based funding. Don’t let seasonality hold your business back. Instead, leverage your assets to improve your cash flow year round.
Talk To The Team At The Commercial Finance Group Today
Does asset-based lending sound like the ideal solution for your small business? If so, we invite you to talk to the team at the Commercial Finance Group. When you work with our team, you will benefit from years of industry experience. Our team is equipped to guide you through the funding process, helping you identify the ideal solutions for your company’s unique needs. From invoice factoring to asset-based lending, we work with companies to find the right funding solution for their needs.
If your company has been deemed unbankable and struggles to find traditional funding solutions that fit your needs, we are here to help. We consider ourselves your bridge back to bankability. The unique funding solutions we offer are meant to be a stepping stone into your future. We not only pair you with an immediate answer for cash flow and growth solutions, but we also take the time to map out how this will affect your future. We want you to be able to take the funding solution we offer and leverage it to create a sustainable future for your company. Reach out today to learn more and set your company back on the track to success.
