Due to current economic conditions, it is hard for a business to expand or even survive. If your business is in a growing phase, it will need more financial investment. According to studies, 29 percent of new businesses fail due to a lack of financing.
If you have assets, but your business requires financial capital to run and grow, asset-based financing is the right option for you.
What Is Asset-Based Financing?
Asset-based financing is when you put your assets up as collateral and take a loan based on that. It’s an efficient, quick, and cheap way to get a loan. The asset which you put up as security can include real estate, inventory, equipment, and shares. Asset-based financing can help you in the following ways:
Asset-based financing is ideal for growing businesses that have seasonal operations and tight cash flow. This will make their cash flow predictable as it provides financial stability to your business.
Helpful in Bankruptcy
If your company is on the verge of bankruptcy or if you’ve filed for it in court, don’t worry; asset-based lenders have got your back here. You’re eligible to apply for asset-based lending. Creditors cannot seize your assets, in some cases, as per the law. This is why this option is beneficial for the borrower.
They can use the loan money to expand or stabilize their company.
More Room for Negotiation
Asset-based financing has more room for negotiation. This loan is easier and quicker to obtain because you put up your asset as a guarantee, making it less hard for lenders to sign off. It is less risky and affects lower interest rates compared to other loan options. However, if you cannot pay the debt in time, the lender will seize your collateral.
Global Capital Partners offers asset-based lending to start-ups and growing businesses. From hospitality to biotech, they have facilitated businesses in growing. The solutions they provide include funding payrolls, bridge loan financing, financing a business acquisition, and financing commercial properties. Also, their qualified experts help businesses in seasonal sale operations.
Contact them now, at +1-800-514-7350, to learn more about their services.