How to Make Your Business the Next Big Thing: Asset Financing for Business Growth

Asset finance, FINLOANS
How do you make sure that your business is the next big thing? How do you make sure that your business takes off and doesn't just fly under the radar? The answer is asset financing. Asset financing can help businesses like yours take off and reach new heights of success by giving them access to the resources they need to grow their company.

What are the benefits of asset financing?

When you are starting a new business or expanding an existing company, it is often too difficult to find the right funding opportunities. Banks are regularly cautious when it comes to lending to small businesses and tend to require collateral. In addition, banks may also take a long time to process your application and finally approve a loan, meaning in cases of an already established business, causing long delay times. Secured Asset Financing is a great alternative, as FINLOANS can provide you with what you need, when you need it and if approved, within days instead of months!

Asset financing is the most convenient way for businesses to finance their assets. The best part of asset financing is that you can receive a loan based on the assets you need to secure financing for your day-to-day operations and growth. It is commonly used for short-term funding needs to increase short-term cash and working capital.

It is a good way to manage your cash flow.

Asset financing provides a way for companies to access short-term liquidity when they need capital, but don’t have the receivables or inventory to borrow on. Asset finance is a prominent source of borrowing as repayments are stretched out over a specified period of time, opening up working capital and enabling monthly payments to be planned and included in company cash flow. The usual duration for such financing is cut into multiple years. The timescale allows a company to build a life cycle for the assets financed that are necessary for critical operations. These types of assets can also be replaced and upgraded at the end of the specified term if needed.

Companies with a large capital base in hand also choose asset financing to invest in initiatives that will support long term business growth. These individual initiatives will also provide a positive cash flow but may not provide an immediate return on investment.

Asset financing can help with your business growth and development.

You’ve been working day and night on your business for years. You are passionate about what you’re doing and care about the company as if it was a child of your own. It’s not often that you can get a loan or line of credit from a bank when you’re a small business owner, but there are options out there. Asset financing is the best way to gain flexibility in the short term while allowing your business to grow at its own pace. Furthermore, if you’re looking to make some big changes but don’t have the upfront capital, you may want to look into asset financing. There are several types of assets that can be used as collateral for an asset-based loan including real estate (including land), equipment (including machinery), vehicles (including cars), boats, trucks, and other transportation vehicles (including aeroplanes). There was also a large rise in new asset financing lending across a wide variety of these financial assets, with certain asset classes witnessing increases of up to 150% showing the great potential and vast mass of companies already utilising asset financing.

Larger companies will have a more flexible line of credit.

The main advantage of asset financing is that it allows businesses to borrow large sums of money in a short period of time. According to the Commonwealth Bank of Australia (CBA), a competitive lender under FINLOANS, “Each business has its own unique demands and opportunities that asset financing can support – from sole traders looking to secure loans for a new vehicle, to listed entities looking to acquire a business via an asset-backed structured facility.” Asset financing is a loan that uses your company’s assets as collateral. The lender will look at your business’s financial statements, including its balance sheet and income statements, to make sure that it can afford to borrow the money. If they like what they see, they’ll extend an offer based on the value of your assets.

It’s important to note here that larger companies will have more flexibility with this type of loan because their assets are worth more—and therefore provide more security for lenders. Furthermore, large businesses can borrow more money at once and pay it back over a longer period of time, whereas smaller companies might only be able to borrow smaller amounts of money at one time, or they may be required to pay back the entire loan in a short amount of time proving more lucrative the more your business grows in scale. The terms will depend on how much you need and how long you want the loan for, but whichever option works for your company will usually be listed in the contract when choosing asset financing options.

Asset financing allows companies to raise money through assets, as opposed to relying on capital coming in from investors or other outside sources. Asset financing can help your business grow, but it’s important to know what you’re getting into before signing up. You want to make sure your business operations are stable and ready to take on the challenge of asset financing. At FINLOANS, we’ll do our best to find the right financing solution for your unique needs and best interest. Whether you wish to refinance an existing loan, invest in real estate, buy new equipment or furniture, or renovate your home, we are here to help you.

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