Hard Money Loans

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But as companies confront a tight credit market coupled with lower than expected results, many CFOs are viewing asset based lending as a viable option in the financing tool kit. Even successful companies with strong banking relationships can quickly fall out of favor with lenders and lose access to unsecured financing, especially if they’ve shown recent losses. A few bad quarterly results doesn’t necessarily mean that a company is in bad shape, but stringent bank underwriting parameters can cause existing loans to be called and prevent the firm from qualifying for new financing. A company facing such a scenario can use asset based lending (ABL) arrangements as bridge loans to pay off banks and provide liquidity until bank financing is achievable.

What is asset based lending?

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The best way to realize the American Dream of financial independence is, for many, to acquire capital for their business. Because lenders prefer to loan to businesses with established financial histories, loans through traditional lenders can be difficult for new businesses. In today’s market, it grows ever more difficult to obtain loan approval for the business capital you require. Whenever you turn on the news lately, it seems like there is always at least 1-2 new banks that is asking for the government to take over control and bail them out. It is no wonder banks are reluctant to lend, with all of this market volatility. Read the rest of this entry »