Factoring can protect your business from bank collapse. Not only are banks less likely than they have ever been to extend credit to small enterprises, but the current state of the financial system makes obtaining credit from a bank more difficult. Depending on your circumstances factoring may be a more viable solution.
Why Factoring Is A Better Option In These Difficult Times
Applying for a business loan can be challenging for small entrepreneurial enterprises at the best of times. A small business is less likely to be approved for a bank loan. This is especially true in our current economy. Given the banking industry’s current crisis, banks are less likely to extend credit to customers. Small business owners may want to consider factoring for their financing needs.
With factoring, you do not need to worry about capital requirements or your credit record. All the factoring company needs from you are your accounts receivable. You effectively sell your invoices to the factoring company, which then advances the cash to you and collects the receivable sums directly from your customers. You steer clear of the banking system entirely and do not have to incur any debt.
When you submit an application, include:
Your credit history is less important than your client’s credit history. Our diligence focuses on the credit history of your customers to determine how reliable they are as payers since we will be collecting directly from them. We will pay you a certain percentage of the total of the invoices factored within a matter of days. You can then get on with your business and wait for the remainder to be paid to you (after we have deducted our fee).
Kore Capital is an experienced and trusted financial services provider that can offer you all the benefits of factoring services and other alternative funding methods. Contact us for more information.
Inventory as Collateral in Asset-Based Lending
Inventory can be used as collateral in asset-based financing arrangements. Companies offer their inventory as collateral to obtain a line of credit, which allows them to access funds based on the current worth of their stock. This can be especially advantageous for businesses with seasonal variations in their inventory or those seeking to fund expansion projects.
Real Estate Collateral: Property-Based Financing
Real estate assets can serve as collateral for asset-based loans in certain situations. Property-based finance enables firms to utilize their owned real estate, such as land or buildings, as collateral to get capital. This loan method can offer substantial financial support for projects aimed at expansion, acquisitions, or the repayment of current debts.
ABL provides multiple advantages for firms in need of financial solutions. Companies can efficiently and promptly obtain financing by utilizing their assets, eliminating the need for significant credit checks or lengthy approval processes. This might be especially beneficial for organizations with substantial assets but need more cash flow or credit history.
At Kore Capital, we recognize the significance of asset-based financing in meeting the financial requirements of businesses. Our extensive financing options, such as asset-based lending, are specifically tailored to assist firms in expanding, meeting payroll obligations, and generating liquidity. If you require financing backed by accounts receivable, inventory, or real estate, our services are designed to offer customized solutions that facilitate your expansion.
Ultimately, asset-based lending provides enterprises with a versatile and effective way of obtaining cash. Companies can expedite borrowing and enjoy more favorable interest rates by utilizing their assets. Kore Capital’s proficiency in asset-based lending enables firms to unleash their potential for expansion and triumph. Reach out to us now to acquire additional information on our financing options and discover how we can assist in the growth and success of your business.