Asset-Based Lending: The Perfect Financing Solution

Asset-based loans have been all the rage in the corporate world as of late. With many as the same benefits as having a line of credit, they go one step further because they’re easier to qualify for. 

All you need is an asset to be able to secure your loan: it could be equipment, inventory, or another business asset. Lenders like Global Capital Partners Fund LLC offer quick closings and promise dependable asset-based loans, making it far more likely that your business will survive in the long-term. 

And that’s not all there is to gain from asset-based lending. Let’s look at a few more benefits.

You Improve Your Business’s Liquidity

Uncertainty is always present in every business interaction, but it can be minimized. 

Asset-based lending can bolster your business’s financial stability by providing a predictable cash flow which eliminates certain risks and uncertainties. Companies that are undergoing rapid growth will have much to gain, especially if they have stringent cash flows. 

Easier to Qualify For

Qualifying for a line of credit is infinitely more difficult than qualifying for asset-based loans. With asset-based loans, all you need is an asset that is ready for leverage. If there are any further requirements, they’ll be limited toa record of profits and finances. But no more than that. 

And when it comes to leveraging assets, there’s an easy way out here too: you do it by putting up your accounts receivable. Go with assets that can be turned into cash quite easily. You can also use inventories and equipment in the form of extra collateral, just in case. 

It’s Flexible

One of the things that set asset-based loans apart from other kinds of loans is how flexible they are. There are no restrictions on how you can spend the money that you’ve borrowed. Most loans, on the other hand, will carry these limitations with them, putting you at a disadvantage. All you need to prove is that the money is needed for a business purpose, and it’s all good from there. 

Additionally, there’s a chance that your financing line will grow as your sales get a boost since it is linked directly to your accounts receivable. You can get a request for an increase approved very quickly in comparison to conventional forms of lending. Again, companies that undergo rapid growth have much to benefit from here, because they usually need a steady influx of funds their way. 

No Long Waits

Usually, when you go the traditional route for loans, you’ll find that time is inessential. There will be a long wait before you finally get the money. There’s no such wait involved in asset-based lending. From the application to the underwriting process, everything is done fairly quick, taking only a few weeks. 

All you need to prove is that your business makes profits and has a stable financial history. In complex cases—let’s say in case there’s a turnaround—you might have to wait for some time for the underwriting.

GCP’s Asset-Based Lending Program

If you’re interested in getting financial help from Global Capital Partners Fund LLC to further your business, contact a senior partner at GCP to know more about all your options. Whether you’re in Fort Worth TX, or Cleveland, OH—these guys can help you with all your hard money loans.

Categories: Finance

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