A Short-Term Financing Solution When Banks Say “No”
Businesses have life cycles. They go through good time and bad times. During the bad times, many business owners find it difficult to get the financing they need from traditional sources (banks). But that doesn’t mean they can’t get financing at all; they just need to know where to look.
Asset based lenders are a non-traditional lending source to which business owners can turn. They look at things from a different perspective than do banks and help businesses during difficult times with the goal of getting them back to mainstream financing as quickly as possible. They are transitional lenders.
Interest rates are going to be higher than bank rates because asset based lenders are taking on the risk that banks won’t take, but asset based financing needs to be viewed as the short-term solution it is. When business owners become obsessed with the capital’s price instead of what the availability of that capital means to the success of the business, the business will suffer.
Yes, there are other options to asset based lenders as a capital source, but those are for the long-term and have their own issues and impact. While paying a bit more with asset based lenders, remember, they are transitional lenders. Asset based financing is a short-term solution when banks say “no.”
About Celtic Capital
Companies looking for working capital to cover operating expenses, fund growth, increase buying power and take advantage of vendor discounts and rebates turn to Celtic Capital. With an appetite for the more complex transactions, Celtic Capital has a history of success in crafting creative, flexible asset based financing solutions from $500,000 to $5 million with no financial covenants.
As an independent lender, working with companies nationwide, Celtic Capital is willing and able to alter price and deal structure and expand lines of credit to handle its clients’ increased revenues; and when cash flow is an issue, will look toward providing an inventory facility to help offset lost cash flow.