Growing Your Business after the Holiday Season
Many businesses in the United States see an increase in sales during this last month of the year. In fact, many businesses depend on this push in order to act on growth opportunities during the following year. But instead of attempting growth through traditional loans, entrepreneurs are using a much more consistent and affordable method, without taking on any debt.
Planning for Growth in 2019
Given the time it takes for traditional loan applications to process, many businesses seek loans before the new year, counting on the increase in sales to pay off in 2019. Unfortunately, loans are extremely risky. No one can say if there will be even more interest rate hikes. Taking on debt may not be wise, especially if continued sales in 2019 do not yield the revenue needed to maintain operations and pay off loans. As an alternate and safer strategy for growth in 2019, businesses are using asset based financing.
Using Asset Based Financing for Business Growth
Asset based financing does not deal in unknown interest rates, debt, or long processing times. Instead, asset based financing helps businesses grow by dealing with what is tangible. By tapping into the value of equipment, vehicles, property, inventory, and receivables, asset based financing creates a revolving line credit. The more assets a business owns, the greater the amount of capital available. This line of credit can be drawn upon as needed for any reason, and once the balance is repaid, the financing is replenished. Additionally, as a business grows, the assets can be re-assessed to provide even higher financing. In essence, asset based financing is the only program that actually encourages and rewards growth. Because this form of financing is structured around tangible assets, there is no need to put any debt on the books. Asset based financing can be arranged quickly, so businesses can take advantage of growth opportunities for the new year.
CNH Finance provides asset based solutions to businesses spanning all industries. Make the most of your assets and launch your growth strategy for 2019 with our asset based lines of credit. Contact our offices today to get started.