Let’s say you started a small business five years ago. Congratulations!
Your company has already made it past the failure mark for many small to mid-sized businesses. Just because your company is stable and potentially growing doesn’t mean it will be any easier to find small business lending options than it was when you were first starting out.
The cold hard fact of the matter is that many banks prefer to work with larger companies. Why? Because larger companies have history. They can demonstrate a decade or more of solid revenue, they’ve had more time to collect assets, and when banks see their long track record they feel more confident that any money lent to the company will be paid back in full.
Faced with a severe lack of small business lending options, many entrepreneurs think they have to throw in the towel when cash flow problems arise. Even worse, they may assume that they must remain a small business, simply because they can’t find small business lending options to finance their growth.
This isn’t the case!
In recent years, alternative small business lending options have been gaining in popularity. The Commercial Finance Group is proud to offer a variety of financing options for small and mid-sized businesses that can’t turn to the banks for one reason or another.
One of these options is asset-based lending, which allows business owners to finance their own growth or overcome cash flow issues by leveraging assets they already have.
How Does Asset-Based Financing Work?
- Businesses decide which assets they’d like to finance. Options include accounts receivable, inventory, and machinery.
- Accounts receivable typically get funded at 80% while inventory and machinery are lower, approximately 50-70%
- Cash is delivered in exchange for the asset, which can then be used to cover cash flow problems or facilitate growth
Interested In Asset-Based Financing In Burbank? Contact Us Today!
The Commercial Finance Group operates its West Coast office out of Burbank and we’d love to meet with a representative of your small or mid-sized business. We can explain the advantages of asset-based loans and why they are often a better choice than other small business lending options.
