Cash Flow, Growth Money, Business Funding Beyond the Banks
The number one reason why a majority of businesses in the US and other places in the world are failing is lack of capital. A business can have an exclusive market, on-demand products, and good distribution methods in place, but without money, it may still fail. Money is the catalyst for the progression of any business.
But almost 90 percent of loan applications made to banks and other traditional lenders are not approved, according to newcityfinancial.com. So where do these businesses turn to?
About Asset Based Lending
Asset-based lenders play a major role in the economic block. They look out for businesses by lending them cash based on real estate financing and leasing, purchase order financing, engage in factoring, accounts receivable, assets an inventory. Asset-based lending companies could be financial subsidiaries of major industrial corporations, factoring organizations, large independent finance companies both small and large, and asset-based lending sectors of domestic and foreign commercial banks.
Asset-based financial lenders are the best option for undercapitalized businesses since they help make a big difference in profitable growth and failure. They provide high flexibility and availability of cash flow and because of this empower many companies to take advantage of opportunities provided by the market.
Who Can Take Asset Based Finance?
Asset-based lenders respond to individual clients needs after they have failed to get a loan approval from traditional lenders. While traditional financiers like banks have a one-size-fits-all approach to lending, asset-based companies tailor their offers for individual businesses.
Asset-based funders are not “reactive” but rather “proactive” and have the know-how and experience for putting up a proper structure financing program for borrowers. They fund businesses both internationally and locally covering a wide range of services and products. They will first learn what type of business you want to be financed and then link it to the industry it belongs to.