Which Businesses Will Benefit From Our Asset Based Lending Program?
The majority of businesses can benefit from using asset-based loans to help with growth and consistent access to working capital. Businesses in the acquisition, expansion, or turnaround stages can find great value in working with asset-based lenders. All companies with assets that include accounts receivables, inventory, or fixed assets should consider an asset-based loan as an alternative form of financing. ABL does not require many years in business, an implacable credit record, and it does not add additional debt.
Asset-based lending is not the right solution for every business. One example is businesses that use a recurring revenue model have no assets due to the nature of their business. Those companies dealing primarily with cash transactions would also not be a good fit.
What are the best industries for asset-based lending?
We offer competitive services for financing and lending to manufacturing businesses every day. Sectors that have a capital-intensive nature tend to be the perfect fit for asset-based lending. If you're a manufacturer or distributor, you're most likely an ideal prospect for an asset-based lender like 1st Commercial Credit. The stronger your collateral reserve is, the more attractive a lender will find your company's situation.
Financing distributors is an easy process for us, and we can give your company immediate access to funds. A vast number of industrial businesses are also thriving with our asset-based loans. Companies in industries with seasonal sales also benefit from the fluidity of an asset-based loan. Long-standing sectors taking advantage of asset-based lending include apparel, retail, staffing, and business service companies that extend credit to their customers.