bharatbhasha.com
Free Articles  >>  Business And Finance >>  Page 2333  >> 

Asset Based Finance





To acquire the operating liquidity you need, turn to asset based finance. This type of financing is not debt financing like many borrowers need to turn to. Small businesses can acquire asset based finances loans but it common for medium sized businesses to turn to them. To acquire asset based finance, you need to take a look at the following prerequisites:

- Your corporate credit rating. Lenders must know that you have a strong credit rating as this shows you can repay your loans in a timely manner. Vendors report your payment history to Duns & Bradstreet. They will create a list of your debt and payment history to provide you with a corporate credit rating that lenders use to qualify you for a loan.

- What is the size of your facility? In order to acquire the money you need the lender will take a look at the size of your facility including your staff, your cash flow projections, and business finances. They need to see a list of things you need to purchase with the money you acquire from the loan.

- Perceived industry risk. Lenders need to take a look at the risk associated with your industry. What are you doing to reduce your risk in the industry?

With asset based finance, you need to front some type of asset that will provide you with plenty of money for your business. Your business assets include your real estate, equipment, machinery, credit card sales, and invoices. Using these assets you can easily acquire the money you need to purchase raw goods and turn them into products for your business.

Lending companies place a large emphasis on your assets and performance as it will sustain the loan in the event that you have some temporary operating losses and other problems. There is no telling what will happen for your business in the future and lenders need to see that you have quality assets to sustain your business. Business Finance to hard to come by but certainly

When you use this type of financing, you are able to acquire up to 90% of your invoice value or 40-80% of your inventory. This provides you with plenty of money to pay for other needs for the business and to prevent cash flow problems.

In order to undergo business restructuring, you need to plan, communicate, and map out a good plan. Take a look at your business plan and understand your goals.


About Author Andy Kyle :

To acquire the operating liquidity <a href="http://www.corporatecreditconcepts.com/directory/asset-based" target="_blank">http://www.corporatecreditconcepts.com/directory/asset-based</a> -finance.html


Article Source: https://www.bharatbhasha.com
Article Url: https://www.bharatbhasha.com/finance-and-business.php/257567


Article Added on Sunday, August 29, 2010
LD
Other Articles by Andy Kyle

Asset Based Lending
When starting a small business, there are several loans to choose from but you may not always qualify for them due to your business credit rating and your personal credit rating. Since small businesses are a high risk, you may need to look into a different type of loan. Asset based lending is quite common amongst small businesses because it is seen as the lowest possible risk to the lender. Asset based lending requires you to front some type of collateral that is used to secure the loan....

Asset Based Loan
An asset based loan allows you to acquire the funding you need for your small business. Using some type of collateral like your business equipment or real estate, you will be able to convince a lender to offer you the money you need to expand your working capital or to purchase goods and services. When you use an asset based loan, you will be able to secure a lower interest rate, longer loan terms, and flexible payment plans. Since an loan is seen as a low risk to the lender, your corporate...

Hard Money Loan
You are looking to buy real estate; however, you are having difficulties qualifying through normal routes. What do you do? Is there any hope? Of course there is! Individuals and businesses alike can finance real estate through the use of hard money loans. These loans differ from your traditional business credit or personal credit loans. Hard money loans are considered asset based. In other words, the loan is financed through the backing of an asset. This is one of the reasons they call...

Finance Books
It doesn’t matter if you are first starting out a new business or currently running business, having finance books is a benefit for your company. This will help you keep track how much money you are spending on your business and it will help you track how much money you are bringing into your business and you are actually making. You always want to keep an eye on your debit and credit finances. When starting a business, many people don’t know where to begin with keeping finance books. About...

Invoice Finance
Your business is in need of money. You have multiple invoices outstanding and repayment from those invoices is going to take time to collect. You can’t wait that long for cash. Invoice finance is a method businesses can employ in order to help solve those times of financial need. Invoice finance is also known as invoice factoring. However, it is not to be confused with invoice discounting. Invoice factoring can be explained simply as selling off invoices to a third party at a discounted...

Receivable Factoring
If your accounts receivables are a huge asset to your business, you may need to use receivable factoring to acquire the money you need from it in order to sustain your business. Receivable factoring is a simple way to finance your sales as you sell your open invoices to a factoring firm who will take care of the collection process. They will provide you with 80% of the cash now so you can pay for your expenses and other things while they handle the collection of the money. Once they acquire...

Acquisition Finance
Acquisition finance is called a “change of control” loan. This type of loan allows you to sell or acquire a business. What often happens with acquisition finance is you need to find a lender that is able to provide you with the funds you need even if the assets being purchased are worth more than the actual purchase price. This can be a challenge because some lenders may be worried about losing money while others see that a considerable amount of money will need to be written off to goodwill....

Export Finance
Are you ready to maximize your small businesses growth potential? Export finance is a great way to grow your business in a hurry. When you deal with export finance, you must be careful about the amount you are exporting as you can quickly ruin your cash flow and leave your business in a bind. While it is great to open your business up to foreign markets, it does open the doors to a lot of risk. When you deal with foreign markets, you deal with slower payments. Sure you can set up online...

Off Balance Sheet Financing
Remember all the news about the sudden collapse of energy-trading Enron Corporation? Enron was using the off balance sheet financing accounting technique. This technique is where large capital expenditures are kept off a company's balance sheet through various classification methods, therefore making their debt to equity and leverage ratios low. Enron used off balance sheet financing by having many partnerships, causing their books to look good when in fact they were heading toward financial...

Business Credit
Do you have some short-term cash needs? There are several different options pertaining to business credit, one of which is known as trade credit. Trade credit involves two businesses that trade capital in order to manage their short-term needs. This allows a business to forego a traditional bank loan as they can create their own funding working with other businesses to acquire the raw goods they need to stay in business. Since the recession hit banks hard, many of them are unwilling to offer...

Click here to see More Articles by Andy Kyle
Publishers / Webmasters
Article ID: 257567
DELINK URL from Authors Bio
REMOVE Article
Tell A Friend
Leave A Comment!
Download this article in PDF
Report Article!
Search through all the articles:


186 Users Online!!
Related Articles:
Latest Articles:
 
Business And Finance >> Top 50 Articles on Business And Finance
Category - >
Advertising Advice Affiliate Programs Automobiles
Be Your Own Mentor Careers Communication Consumers
CopyWriting Crime Domain Names DoT com Entrepreneur Corner
Ebooks Ecommerce Education Email
Entertainment Environment Family Finance And Business
Food & Drink Gardening Health & Fitness Hobbies
Home Business Home Improvement Humour House Holds
Internet And Computers Kiddos and Teens Legal Matters Mail Order
Management Marketing Marriage MetaPhysical
Motivational MultiMedia Multi Level Marketing NewsLetters
Pets Psychology Religion Parenting
Politics Sales Science Search Engine Optimization
Site Promotion Sports Technology Travel
Web Development Web Hosting WeightLoss Women's Corner
Writing Miscellaneous Articles Real Estate Arts And Crafts
Aging


Disclaimer: The information presented and opinions expressed in the articles are those of the authors
and do not necessarily represent the views of bharatbhasha.com and/or its owners.


Copyright © AwareINDIA. All rights reserved || Privacy Policy || Terms Of Use || Author Guidelines || Free Articles
FAQs Link To Us || Submit An Article || Free Downloads|| Contact Us || Site Map  || Advertise with Us ||
Click here for Special webhosting packages for visitors of this website only!
Vastu Shastra

Linux cPanel Hosting Provided By AwareIndia







Company IDS