One of the best ways of achieving your heavy equipment financing is through asset-based lending. This option works well for company owners because it allows them to use the value of company assets as collateral for a loan. This can be very helpful, because it allows you to bypass strict credit requirements, and there are number of assets which qualify for asset-based lending, such as inventory or Accounts Receivable.
How asset-based financing works
It’s always better if you can work with a financing company which is experienced in handling the type of heavy equipment you want to finance. You should also look for favorable terms and conditions that will work for your business, and you should make sure that all these terms are very clear. In most cases, applying for asset-based financing is fairly straightforward, assuming that you do have some type of asset which is agreeable to an alternative lender. After filling out an application, and supplying the lender with documentation about the value of your collateral, a loan can be arranged fairly quickly.
Advantages of asset-based financing
One of the biggest advantages of asset-based lending to accomplish your heavy equipment financing is the flexibility that it provides to the borrower. You might also want to use the money obtained through asset-based financing to accomplish other business purposes such as growing your business through mergers or acquisitions, restructuring your existing debt load, or simply to acquire cash for normal operating expenses. In some cases, your asset-based loan can actually be structured as a business line of credit, which provides you with even greater flexibility, because you can use this just like a business credit card.
Does your company need heavy equipment financing?
Obtaining a major piece of equipment can sometimes be the single factor which sends your business to the next level. Contact us at Integrity Financial Capital to find out if you’re eligible for heavy equipment financing that will fuel your future business growth.