More and more firms are using asset financing as a way to solve their cash flow issues. Therefore, let us take a look at the advantages of using asset backed lending:
Simple
The process of securing credit is very easy, as it focuses on using assets as collateral.
Fast
You can quite swiftly secure a credit line, with a decision reached very quickly. Once you have a working relationship with your broker, the decision process is even faster. In some cases, you will get an answer within hours, rather than having to wait for days or even weeks.
The speed of the service allows you to take advantage of any business opportunities that arise. Being able to move fast allows you to beat your competitors and grab a bigger market share for your company.
Flexibility
A firm can decide to borrow nothing one month and then ask for capital the next. It can have one big loan or several smaller ones and, in many cases, can pay those loans back early if it suits them.
Short-term lending
Often a company’s cash flow issues will be very short term. Many firms’ issues relate to seasonal fluctuations, changes in the exchange rate or a big customer not paying a bill on time.
Asset finance allows enterprises to borrow for a few days, weeks or months, if that is what they need. This ensures that they do not spend any more money than necessary on business loans.
To find out more about the advantages of borrowing against your assets, please contact us at DJB.
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