Having access to working capital is essential for any business to maintain daily operations and to grow successfully. However, finding a reliable source of working capital can be challenging, especially if businesses either do not qualify for traditional business loans or want to avoid taking on extra debt. In these situations, an asset-based line of credit can be an excellent source of working capital that actually promotes business growth.
Using What Businesses Already Own
In broad strokes, asset-based lines of credit are structured around assets owned by a business. Equipment, receivables, machinery, and inventory all have an intrinsic value. Asset-based lines of credit unlock that value to create a reliable source of working capital that can be drawn upon as needed. This revolving line of credit is reusable as the balance is repaid, giving businesses discretionary cash that can be used for anything they need.
Asset-based lines of credit are interest-only, so repaying the balance is very manageable, and businesses can still cover overhead costs and keep moving forward.
Designed for Growth
Asset-based lines of credit are one of the few funding solutions that promote business growth. The amount of capital available grows with your business as it acquires additional equipment or machinery, or as the value of your accounts receivable increases. This means new and small businesses can get an advantage and go beyond simply maintaining the status quo. They can cover costs and focus on growth while still accessing a reusable source of working capital.
Derix Capital Finance offers asset-based lines of credit that allow businesses to access up to 90 percent of the value through an interest-only revolving line of credit. Stop juggling finances and waiting to receive payments from invoices on staggered payment schedules. Contact the experts at Derix Capital Finance today and get a reliable and reusable source of working capital for long-term success.