3 Myths About Asset-Based Lending Debunked

The pandemic has impacted businesses across the globe. Some have shut down their operations, while others struggle to sustain themselves in a cutthroat and challenging economic environment. This is where having readily available business financing solutions can help businesses sustain themselves and create a future path of success.

The last thing you’d want as a business owner is to run out of money. You’d need to apply for loans that come with high-interest rates, which might further eat up your liquidity. However, you can leverage your existing business assets to get the funding you need and that too on favorable terms. There are a lot of myths surrounding asset-based lending. Let’s have a look at some before you decide to proceed with asset-based lending in Florida

Myth 1 – Only Collateral Value is Considered

This is one of the most common myths surrounding asset-based lending. Many believe that asset-based lenders in Miami, FL, only consider collateral value when making loan decisions. While it is a significant factor in determining your eligibility, it does not truly define your ability to repay the loan. A lender will consider several other factors, such as your business’s financial performance, credit history, and much more.

Myth 2 – They Are Expensive

Another common myth that people believe is that asset-based lending is quite expensive. While some lenders charge high-interest rates, some provide quality asset-based loans at competitive rates. You need to shop around and find the best interest rates. These loans are generally quite affordable and offer much more flexibility than other unsecured business loans.

Myth 3 – They Hamper Growth

Many business owners believe that getting asset-based lending will impact the growth of their companies. However, this is far from the truth. The whole point of getting asset-based lending in Jacksonville, FL, is to help grow and expand your business. Such loans can also help you solve liquidity or cash flow problems that you might have. You can use the funds from the loan for your working capital.

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Asset-based lending is a quicker, easier, and more flexible way of getting a loan. Whether you want to cover your daily expenses or finance a new project, asset-based lending in Pennsylvania is the way to go! If you’re on the lookout for an asset-based lender in Philadelphia, then check out the services provided by GCP Fund.

The company is one of the best when it comes to asset-based lending in Pittsburgh. Getting your loans from GCP Fund would mean getting compelling services and easy requirements. Contact your asset-based lender in Tampa, FL at GCP Fund today!

Categories: Asset Based Lending

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