There is an option for small businesses who cannot find financing anywhere else - asset based lending.
You can use your liquid or fixed assets as collateral to get loans based on their equity.
There are many asset based lenders who will give you different options based on what you have and what you need.
In the current economic environment where getting credit from banks has become extremely difficult, asset based lending is the best possible solution for businesses.
There are three ways in which the asset based lenders usually provide loans.
You can get loans on your accounts receivable (the amount that your customers owe you), your inventory, or your fixed properties such as plants or equipment.
In the first case, you have to provide your list of accounts receivable to the lender, and they will approve the list and then open up their credit up to a certain percentage (85% of what you could get or similar terms).
You will then send customers the invoices, and they will pay the money to an account from which the lender can directly take the payments.
These payments will be taken as payments towards your own outstanding balance with the lenders.
In the case of inventory or equipment you could have them valued by a professional or a third party, and the lender would lend you a percentage of the value of the inventory or the equipment.
You are likely to get more for your equipment than your inventory.
As you make payments towards your credit balance, more cash will be made available to you which you can use to fund other business activities.
If your small business is showing rapid growth and hence will not fit the tight criteria that banks look for, then asset based lending is for you.
You can get asset based financing even if you don't have a stellar personal credit score since the lenders only look at your assets and not your credit history.
The lending is low risk for them due to the collateral.
An additional bonus is that the lenders will not be reviewing your financial reports like banks would and hence you have a bit more freedom.
Also, you have the freedom to manage your cash flow rather than getting a lump sum as in the case of banks.
If you do not have working capital to take on a project or if you are trying to quickly acquire financing to pay your bills, you no longer need to worry.
You could get asset based lending.
Bernard Linney and his staff at HomeCoast Capital are ready to establish a relationship to grow your business today.
You can use your liquid or fixed assets as collateral to get loans based on their equity.
There are many asset based lenders who will give you different options based on what you have and what you need.
In the current economic environment where getting credit from banks has become extremely difficult, asset based lending is the best possible solution for businesses.
There are three ways in which the asset based lenders usually provide loans.
You can get loans on your accounts receivable (the amount that your customers owe you), your inventory, or your fixed properties such as plants or equipment.
In the first case, you have to provide your list of accounts receivable to the lender, and they will approve the list and then open up their credit up to a certain percentage (85% of what you could get or similar terms).
You will then send customers the invoices, and they will pay the money to an account from which the lender can directly take the payments.
These payments will be taken as payments towards your own outstanding balance with the lenders.
In the case of inventory or equipment you could have them valued by a professional or a third party, and the lender would lend you a percentage of the value of the inventory or the equipment.
You are likely to get more for your equipment than your inventory.
As you make payments towards your credit balance, more cash will be made available to you which you can use to fund other business activities.
If your small business is showing rapid growth and hence will not fit the tight criteria that banks look for, then asset based lending is for you.
You can get asset based financing even if you don't have a stellar personal credit score since the lenders only look at your assets and not your credit history.
The lending is low risk for them due to the collateral.
An additional bonus is that the lenders will not be reviewing your financial reports like banks would and hence you have a bit more freedom.
Also, you have the freedom to manage your cash flow rather than getting a lump sum as in the case of banks.
If you do not have working capital to take on a project or if you are trying to quickly acquire financing to pay your bills, you no longer need to worry.
You could get asset based lending.
Bernard Linney and his staff at HomeCoast Capital are ready to establish a relationship to grow your business today.
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