3 Reasons Your Business Needs Asset-Based Financing

The pandemic has brought the world on its knees; most businesses are struggling to stay afloat during this year. While a lot of businesses have completely gone under in the past year, many are making efforts to keep their operations running.

In addition to the setbacks the businesses have suffered, the road to recovery isn’t clear-cut either. Reports show that the traditional bank loans for small businesses that could’ve brought many back to their feet aren’t being approved anymore.

However, if your business is one of them, we suggest asset-based financing instead! This approach offers some unique advantages to your business.


Asset-Based Lenders Offer More Flexibility

Typically, asset finance businesses are much more flexible when it comes to lending. They assess each finance application independently, recognizing that each business may have a different credit history that may or may not be perfect.

While every company that lends will have its own requirements and standards, in general, they are more flexible than banks. That is to say, that most of them will take the time to understand your business and its operation and offer flexible repayment options accordingly.

Better Liquidity

This is one of the biggest advantages offered by asset-based lending. Your business can instantly have improved liquidity. What this essentially does is that it can provide much-needed financial stability and provide a reliable cash flow.

For businesses getting back on their feet, or for the ones experiencing rapid growth, or even the ones that have seasonal revenues, this kind of liquidity can help stabilize business operations.

The Lenders Know Your Business as Well as You Do

Asset-based financing is fairly popular, which means most well-established asset finance companies understand perfectly well what businesses like yours require. This experience, combined with their expertise in finance, means that they’re able to advise and offer the best approach for your business.

On the other hand, other funding options like crowdfunding, for instance, may not take the same variables into consideration when it comes to your business and its needs. Their primary focus is the return on their investment.


If you’re looking for an asset-based lender you can lean on in Chicago, IL, or Kansas City, MO, get in touch with the experts at GCP Fund. They offer a variety of financing solutions for big and small businesses, including hard money loans.


Get in touch to learn more.

Categories: Finance

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