Did you know that nearly 1 in 4 small businesses report cash flow as their biggest challenge?
If you’re struggling to keep up with your expenses, getting financial support from a fair provider is crucial for your success. One of the most popular options for small business owners is asset-based credit.
Do you want to learn if asset-based lending is right for your business? Keep reading for 11 impressive benefits of opening an asset-based line of credit.
1. Asset-Based Lending Is Easy to Receive
If your business is newer, you may not have many different financing options available to you. The good news is that applying for an asset-based line of credit is easy. To qualify, all you need to do is provide some records that your business has strong potential to be profitable in the future.
2. You Can Get Money Fast
Some of the top asset-based lenders can approve your application and give you access to funds within a couple of days. If you have big ambitions for your business, this type of credit can help you start right away.
3. Your Business Will Have a Steady Stream of Income
If you want to make money, you have to spend it first. New and established small businesses can struggle with managing their cash flow. With a steady stream of income, you’ll be able to keep up with all of your business expenses so you can work toward generating a profit.
4. You Can Survive Slow Seasons and Maximize Busy Seasons
Some types of businesses are destined to have busy and slow seasons. For example, an accounting firm would thrive during tax season, but they’d have much less business throughout the rest of the year. Having steady funds throughout the year can help businesses thrive during any season.
5. You Can Focus on Other Important Business Tasks
Instead of worrying about how or when you’ll get more income, you can focus your attention on expanding your business. With this freedom, you have the ability to spend your energy doing what you’re best at.
6. Asset-Based Lenders Offer Fair Terms
One of the biggest mistakes a business owner could make is not doing their research when it comes to different financing options. Since each provider has their own terms, you need to make sure you choose the fairest conditions. When you compare asset-based lending with similar alternatives, you’ll usually find that asset-based providers have fewer fees.
7. Your Success Will Open More Doors in the Future
If you successfully maintain your asset-based line of credit, you’re building a reliable history as a business owner. Although asset-based credit may not be your end goal, it’s a handy tool that can open more doors for you when you’re ready to upgrade to a better provider.
8. It’s Simple to Maintain Your Line
During your research, you’ll discover that some providers are a lot more strict than others. Asset-based providers are known to have less rules in their contracts, which means you should have no problem maintaining your agreement.
9. There Are Fewer Restrictions on How You Can Spend
If you get approved for asset-based credit, you can spend that money on anything you believe will help your business grow. With this flexibility, you can always make sure your business is equipped with the right resources.
10. Money Helps Business Owners Think Outside of the Box
Small businesses face a ton of competition. In order to build your brand, you have to be unique. When you have proper funding, you can relax and brainstorm creative ways to stand apart from competitors.
11. You Can Beat the Statistics of Business Failures
Small business owners face bleak odds when it comes to long-term success. If you don’t want to be among half of the small businesses that close within their first 5 years, you need financial support.
Are You Interested in Opening an Asset-Based Line of Credit?
Now that you know the many benefits of an asset-based line of credit, you can revolutionize the way you manage your finances.
If you’re ready to start the process of opening this credit line, Dealstruck would love to help you find the best deal. Learn more about the process and start your application today.