Guide to Business Equipment Appraisal with Sterling Commercial Credit

How Businesses Can Leverage Asset-Based Loans To Maximize Potential

Asset-based lending caters to commercial businesses, covering assets such as equipment, accounts receivable, real estate, and more. While the infusion of cash is undeniably beneficial, understanding how to strategically utilize these funds is paramount for businesses eyeing substantial growth.

At Sterling Commercial Credit, our suite of financial solutions includes asset-based loans, providing businesses the opportunity to leverage their assets as collateral without navigating the complexities of the standard personal loan process.

General Benefits of Asset-Based Loans

Compared to conventional loans, asset-based financing offers numerous advantages, including:

  • Reduced paperwork: Streamlined processes compared to traditional loans.
  • Quick cash for payroll: Swift access to funds to meet payroll obligations.
  • Flexible repayment terms: Enjoy adaptable repayment options.
  • Fewer usage restrictions: Use the funds with greater flexibility.

Strategic Utilization of Asset-Based Financing

Maximize the potential of asset-based financing by incorporating savvy strategies for business advancement:

Improve Capital in M&A Deals
  • For businesses eyeing mergers, showcasing a healthy cash-flow is crucial.
  • Asset-based lending positions your business favorably, relying on asset value rather than direct sales.
  • Benefit from a revolving line of credit that can grow with your business.
Navigate Seasonal Sales and Fluctuations

Asset-based lending is particularly advantageous for businesses with seasonal fluctuations, providing crucial funds during off-cycles when cash flow is typically reduced.

  • Mitigate the impact of seasonal fluctuations on cash flow, offering seasonal businesses the necessary funds to navigate financial challenges during off-cycles.
  • Provide working capital to sustain business growth in off-seasons, facilitating activities such as entering new markets, paying suppliers, or pursuing new ventures.
  • Strategically utilize asset-based financing to sustain operations during slower periods, avoiding excessive debt and ensuring financial stability.
Comfortable Company Restructuring
  • Adapt to industry changes seamlessly with consistent cash-flow.
  • Facilitate cost-effective restructuring, enabling your business to evolve without the risks associated with traditional small business loans.
  • Leverage your revolving line of credit to hire employees, invest in equipment, introduce services, purchase inventory, and create new positions.
Repurchase Your Stocks
  • Utilize asset-based financing to repurchase stocks and boost cash flow.
  • Benefits include inflating financial metrics, reducing the cost of capital, and saving money when stocks are temporarily undervalued.
Experience Business Growth Today With Sterling Commercial Credit

Avoid accumulating risky debt. Collaborate with Sterling Commercial Credit to explore financial solutions that enhance your cash-flow by maximizing current assets. Discover the vast potential your assets hold for business expansion. Contact us today to learn more about our dynamic asset-based financing opportunities.