Financing Challenges of Scaling a Business
If you own a small business with a bank credit line and see an opportunity for growth, one of your biggest challenges might be securing the additional financing needed from your bank. Banks often hesitate to provide additional financing due to concerns about financial ratios, the unpredictability of cash flows, and the increased risk of default. Essentially, they prefer not to disturb the status quo.
In such cases, finding alternative sources for growth capital becomes essential, and asset-based lending is a viable option. Asset-based lenders finance assets including accounts receivable, inventory, and equipment. As your accounts receivable increase, these lenders can provide additional funds to support your growth and operational needs.
While asset-based financing is more expensive than traditional bank loans, the benefits often outweigh the costs. Asset-based financing offers a flexible solution to access the capital needed to propel your business to the next level. Viewing this higher cost as a short-term investment in your business’s future growth can help you achieve your expansion goals without being hampered by the limitations of traditional bank financing. Leveraging asset-based lending to turn growth opportunities into reality is a smart solution.
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.
If you know of, or are, a business in need of non-traditional financing, contact Mark Hafner at 800.742.0733 or mhafner@celticcapital.com, or visit us at www.celticcapital.com.