Asset Based Lending Is A Strong Alternative
Access to bank finance is a challenge for small and medium sized businesses. Until banks actually make good on their public relations promises of working with businesses, where can you turn? Asset based lending is a viable option.
If you’re looking to boost working capital, asset based lending allows you to access resources, currently on your balance sheet, to fund growth and other business activities. Asset based lending frees you from taking on extra term debt or diluting equity.
Typically, asset based lending categories start with accounts receivable, then inventory. Capital Solutions works to partner with lenders, to get you the best resolution in terms of cost and timeliness.
In fact, once your business’ assets are verified and committed, we can set up a line of credit that allows you to use what amount you need, when you need it. Your business incurs no costs on money in your line of credit until you actually use it. This is another way Capital Solutions works with you to obtain funding at the best-possible rate. For established clients with strong balance sheets, we may put together funding packages within a few points of what a traditional bank would offer. By working with Capital Solutions, you get your money, not another “No!”
Asset Based Lending Says “Yes!”
The accounts receivable aspect of asset based lending depend on the credit worthiness of your customer. As a business owner, you entered into a relationship with your customer confident in their ability to pay for your goods or services. On large and small orders, particularly in the early stages of working together, it is prudent for the seller to do due diligence to ensure that the buyer has the resources and track record to complete the transaction.
It’s a fact of business that customers like to hold onto their money as long as possible, this leads to payment terms negotiated over time-periods that range from 30- to 90-days. Of course early payment is preferred, but in this economy if you can land a sale to a solid, good-paying company, it’s the buyer’s market concerning terms of payment.
Asset Based Lending Has Benefits Beyond Funds
This gap is where asset based lending helps you. We survey your business assets that are awaiting payment and work with you to leverage them into the cash or line of credit you need for running your business. Once you enter into an asset based lending agreement and receive your funding solution no more worrying about cash flow!. This frees up your valuable time and allows you to do what you do best – service customers and grow your business.
