Looking to grow your business? Why not try finance? Asset finance, more commonly referred to as non-recourse factoring, is a cash flow solution for small businesses seeking additional working capital. Factored receivables are paid off 90 days after delivery, and the funds are distributed directly to the business owner.
How asset finance works:
Asset finance is a cash-flow solution for small businesses seeking additional working capital. Factored receivables are paid off 90 days after delivery, and the funds are distributed directly to the business owner.
Advantages of Asset Finance:
Asset finance is a solid alternative to traditional bank loans and lines of credit, with several advantages:
No collateral needed:
There’s no need for collateral, so there’s no risk in applying for a factoring loan. This means you can access working capital without having to sell assets or take out a mortgage on your property.
Flexible terms:
Terms can range from 90 days up to 12 months, depending on your needs and financial situation. You also have the option of repaying early with no penalty fee if needed.
No hidden fees:
Unlike some other types of financing options, there are no hidden fees or commissions involved in asset finance factoring; what you see is what you get.
Increase your working capital:
Working capital provides you with the funds you need to run your business day-to-day, from paying staff wages and suppliers to paying for marketing materials and travel expenses. The problem is that many small businesses don’t have enough cash available for these day-to-day expenses – hence why many rely on bank overdrafts or loans from friends or family members instead of seeking alternative solutions such as business asset finance.
Grow at a faster rate than expected:
The benefits of asset finance aren’t just limited to increasing working capital for a company. It can also be used as an effective way of growing at a faster rate than expected. If a company is doing well financially but has no way of accessing credit without taking out an expensive loan, it can simply use asset finance as a way of improving their cash flow situation without having to take out an expensive loan first.
Conclusion:
Asset finance is a great solution for your business if you need working capital that you can use to make more sales today, although it may not be appropriate in all situations. By talking to a non-recourse factoring provider, you can find out if it’s right for you.
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