In Stamford, CT, business owners are usually routed toward debt based financing structures for working capital. Unfortunately, traditional bank loans can often hinder growth and sustainability, which is why entrepreneurs are turning to asset based lending as a renewable source of working capital.
How Does Asset Based Lending In Stamford, CT Differ From Traditional Loans?
Asset based lending in Stamford, CT provides a revolving business line of credit as an extra source of working capital for business owners. Traditional bank loans offer a limited amount of capital, structured around debt, which compromise credit ratings. Asset based lending in Stamford, CT gives local business owners a source of working capital without placing debt on the balance sheets, or negatively impacting credit ratings.
How Is Asset Based Lending In Stamford, CT Structured?
Asset based lending in Stamford, CT is structured around property owned by a business. Within the realm of asset based lending, “property” can refer to real estate, vehicles, inventory, equipment, receivables, and more. A revolving line of credit is created based on the value of those assets. Instead of taking on debt, asset base lending is treated like other business lines of credit. Working capital is accessed as needed, and then repaid, thereby replenishing the line. Unlike traditional bank loans, which offer a limited amount of capital, asset based lending in Stamford, CT can be used indefinitely.
Asset Based Lending In Stamford, CT Promotes Growth
Traditional bank loans hinder business growth by placing debt on the balance sheets. Asset based lending in Stamford, CT is designed to help businesses thrive and grow. When a business purchases larger facilities, acquires new equipment, experiences an increase in sales and receivables, asset based lending can be modified with a higher spending limit to reflect those improvements. Local businesses trying to position themselves for growth use asset based lending in Stamford, CT to ensure long-term sustainability.
Emerging Businesses Use Asset Based Lending In Stamford, CT
Many times, new and emerging businesses do not meet the high entry requirements to qualify for traditional bank loans. Similarly, debt structures are not always desired by new business owners. By using asset based lending in Stamford, CT, new and emerging business owners can sidestep the pitfalls of traditional lending structures and get a stronger foothold in a competitive economy.
Finding The Best Asset Based Lending In Stamford, CT
Lavan Financial Group offers the best asset based lending in Stamford, CT. Our team will conduct an in-depth analysis of your business assets, going over items most banks overlook, in order to provide you with the highest quality line of credit possible. Contact our offices today to learn more about how asset based lending in Stamford, CT can help your business achieve long-term success.