The Myths & Facts about Asset-Based Lending

Myth: A/R financing is a loan.
Fact: A/R financing is a cash flow tool that allows you to create working capital when you need it.

Myth: The requirements for getting financing are always changing.
Fact: The same criteria are used with each client to determine if there is a good fit between both businesses.

Myth: Only a company’s accounts receivable can be used to create additional cash flow.
Fact: In addition to A/R, we also look at inventory and equipment to increase cash flow.

Myth: A business with financing from a bank cannot benefit from other sources of financing.
Fact: In many cases, our clients use A/R financing to complement an existing bank line and increase working capital.

Myth: A/R financing and asset-based lines of credit limit flexibility.
Fact: By creating immediate cash, you can quickly improve your liquidity and opportunities for growth.

Myth: A/R financing is restrictive and only for small businesses.
Fact: A/R financing includes the benefits of additional credit, collection, and monitoring services which can assist companies in managing A/R. It is used by companies of all sizes for a variety of needs, including payroll, seasonal demands, new contracts needs and more.

Myth: A/R financing hurts your credit score.
Fact: Our financing is used strictly for business. It won’t appear on your personal credit report because the funds are used strictly for company expenses.

Myth: A/R financing is only for companies that have been turned down by a bank.
Fact: A/R financing is a great way for a young business to really grow and develop into a booming success.

Myth: Required reporting is time consuming.
Fact: Modern workplace technology has made it incredibly easy to communicate with us and report any changes in accounts receivable, inventories, or equipment.

Myth: Asset-based lending is very controlled and doesn’t offer much flexibility.
Fact: Asset-based lenders tend to be a lot more flexible than traditional banks. Our goal is to see you succeed.

Myth: A/R financing always requires a long-term commitment.
Fact: You use the financing for what you want, when you want it.

Want to see if A/R financing or a line of credit would work for you?