CFA Asset-Based Lending Index Reinforces Important Role of Altenative Lenders
An article released yesterday, “Commercial Finance Association Releases 4th Quarter Asset-Based Lending Index” reinforces the important place asset-based lenders hold in the current economic climate. Alternative sources of lending like factoring and asset-based lending, discussed further in episode #1 of Capital Conversations, is becoming an increasingly viable options for entrepreneurs who are still growing their business in turbulent times. Read the article: http://biz.yahoo.com/prnews/090218/ne72275.html?.v=1
More viable, growth driven businesses are using asset-based lending and factoring as a preferred financing vehicle due to the flexible but disciplined approach to accessing credit. As sales increase, the company is able to borrow what they need against the increased sales to cover costs. As sales are repaid the credit line is repaid and there is no additional debt hanging over the company.