Asset Based Loans
Sometimes, trying to get financing from a traditional lender doesn’t work.
For example, if you’re trying to purchase a new property, you may not be able to wait for a lengthy closing process. In these situations, hard money loans might be a better alternative.
These loans are typically short-term, and they work best for situations where you’re waiting for money to come in such as a custom order for a client or a property sale. Hard money loan payments are interest-only, with a balloon payment due at the end of the term. This financing can be ideal for real estate transactions, but they can work for other asset-based lending options too, such as purchasing new equipment or fulfilling a purchase order.
At Mbrac Capital, we can connect you with a variety of hard money lenders to fit your needs. Call us to find out more.
Asset Based Lending
When a company has to borrow money, it may need to leverage existing assets to do so. Asset-based lending can come in handy in many different situations, mainly because the qualifications are straightforward and because asset based loans can provide more flexibility for borrowers.
These loans also work well for companies that don’t have a lot of liquid funds. If the business has most of its equity tied up in real estate, equipment or inventory, businesses can tap into that equity to smooth out cash flow.
At Mbrac Capital, we’ve helped many of our clients find the right financing option to suit their needs. If you’re worried that you don’t have enough money to pay operational expenses, see if asset-based lending might fit. Give us a call today.
Inventory
For many retailers, the balance between having enough inventory on hand and maintaining optimal cash flow can be challenging. It can often be hard to anticipate customer demand, which can create financial problems for the business during slow periods.
Inventory loans can help mitigate this issue by allowing a business to borrow against future sales. With these loans, the business qualifies by providing sales statements to illustrate how much their inventory is worth. Then, the lender forwards a percentage of that value upfront to the business. To replay the loan, the lender will take a portion of each sale until the loan is repaid with interest.
Inventory financing works best to smooth out peaks and valleys in sales. It can also be a viable solution to satisfy custom orders since payment has already been promised. Call us to find out more about this option and whether it will work for your business.
Accounts Receivable
In some situations, you might be waiting for money to come in through outstanding invoices. If a client has an extended payment term (i.e., 60 or 90 days), you may not be able to wait that long to satisfy incoming bills.
Invoice factoring can be a viable solution to this problem as it enables you to collect payment without having to borrow from a third-party lender. Instead, you can receive up to 80 percent of the invoice’s value by working with a factoring agent. Best of all, since this is money you’ll be earning anyway, there’s nothing to pay back. The client fulfills their invoice directly to the factoring agent, then you receive the remainder, minus a factoring fee. Call us to find out how to borrow against accounts receivables, including purchase orders and long-term contracts.
Equipment
If you need high-end equipment to run your business, you might not have enough cash on hand to purchase it. Equipment loans are designed to pay for new machinery and materials, and they can satisfy up to 90 percent of the purchase price. Since the equipment serves as collateral, this type of loan is often an easier approval process for businesses that don’t have an established credit history. These loans can pay for everything from fleet vehicles to manufacturing materials to some high-end software.
Alternatively, if you already own machinery and need a quick cash infusion, you can tap into its retail value. Lease buybacks enable you to sell equipment upfront and then lease it back from a third-party leasing agent. Best of all, you can use the same machinery so that operations are not interrupted. Call us to find out more about equipment financing and how it can work for your business.
Commercial Real Estate
Investment in commercial space can be a great way to diversify a company’s assets.
Income from renters can not only cover the costs of the real estate, but provide a steady cash flow. However, it takes a while to find businesses to fill the space. In the meantime, your company is stuck with utility payments, property tax, and possibly insurance costs. A commercial real estate loan can offer a bridge between the acquisition of the property and rental or operating income.
Commercial real estate loans are also excellent for new deals. For example, if you’re trying to sell an existing property to buy a new one, you can get a bridge loan to fund the project while waiting for the old building to sell. At Mbrac Capital, we can connect you with various lenders, from traditional banks to hard money investors, that can offer fast financing.
Address: 885 Gold Hill Rd, Suite 454, Fort Mill, SC 29708
Call: 855-735-BRAC (2722)
Email: solutions@mbraccapital.com
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