Why Asset Based Lending Is Considered A Better Option For Borrowers?

 

Whatever the size of your business, financing is an integral part to keep your business running and growing successfully. However, the availability of traditional financing options might not be a possibility every time. This is where a lot of businesses turn towards asset based lending primarily due to the number of benefits that come with it.

The benefits of asset based lending system

  • You can get an asset based loan quite easily and what’s better, here you don’t have to worry about your CIBIL score or credit history as everything in this entire process depends essentially on the availability of collateral in the form of real estate property or equipment. Many businesses also opt for their business invoices or even inventory. The choice is completely yours.
  • Asset based loans can be availed within a very short span of time. Whether it’s a new project or a product launch, or have to give a bonus to your employees; you can always count on asset based lending to solve your problem. Once the process is initiated, the rest of the work gets done very speedily.
  • One of the biggest benefits of asset based lending is that it helps greatly to increase cash flow in your business. A loan is meant to speed up a company’s growth and help with its potential expansion. A loan helps to accord stability to a business during the initial periods or during a period of expansion or when you are making changes in your business profiling and increasing the workforce. With sufficient money available in your business, you can pay more attention to business operations and not worry about cash flow.
  • The asset-based lending system is preferred by the majority of businesses because this system comes with very little conditions and requirements attached to it and so you can maintain some freedom in dealings related to your business. At the same time, you can comply with the loan terms and conditions without facing any constraints.
  • Even though the traditional financing options charge lesser fees, you will still be saving more money when you choose an asset based loan. Asset based loan features an annual percentage rate that differs primarily depending on the type of risk your business involves and the amount of credit that you are getting.

With asset based loans from Accord Financial, you always know that you are safe and your business is secured.

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