5 Reasons to Consider Asset Based Lending
A primary reason why business owners opt for asset based lending is the fact that it is easier to acquire than other types of loans. It also offers several other benefits you can take advantage of. It is worthwhile to learn about each type of financing out there so that you can figure out on your own what works best for your own needs.
First, a great benefit is the amount of flexibility you get. When you acquire different types of loans, the types of things you can use the money on are very strict. It usually gets outlined in the agreement what you can spend the loan on, and it is usually property or essential supplies. However, with asset based financing, you can generally spend the money any way you want.
Another fantastic benefit is the turnaround time. With other loans, you typically have to wait months in order to actually get the money. This is not good if you need money right that second. If you get asset based lending, then you usually get the money within a few weeks.
A great advantage is the improved liquidity you get. One of the toughest things for any business to get, especially a business that has just started out, is to get a stable cash flow. That is precisely what you get with asset based financing, and it can be great for getting your feet off the ground and establishing your business within the community.
You will also love the fact that it is simpler to qualify for this type of loan than other variations. Some lenders have tremendous requirements in order to give you any money. Most asset based lending providers will just need to see that you have a certain amount of profitability under your belt and that you have something to leverage against the debts.
Lastly, a major benefit you can utilize with asset based financing is the fact that it can really help your credit score. Since this is an easy type of loan to get, you can get money and then pay it back relatively quickly. Most lenders communicate with credit bureaus, so if you need to improve your credit score a little bit, then this is a great way to do it.
With so much to gain, it is definitely in your best interest to at least look into acquiring asset based lending. Schedule a meeting to learn more about terms and qualifications. You will likely find that you can gain a lot.
To learn more about Asset Based Lending, contact Flipside Capital today.