3 Key Tips To Help You Find a Great Asset-Based Lending Partner
Taking out a small business loan is a great way to finance your company’s growth. However, when your company is new or doesn’t have a great credit score, getting that traditional business loan may not be possible. Instead, you’ll need to look for alternative loan types. Asset-based lending options are one of the easiest ways to get the money you need. You’re able to use the items you already own to secure the loan so lenders aren’t worried about your credit score. Here are a few tips to help you find a lender you can work with comfortably.
1. Keep It Local
The easiest way to find a good lender to work with is to keep your search local whenever possible. Look for asset-based lenders in your area and contact them first. They’ll typically be more understanding of your financial situation and may issue you a loan when a national lender wouldn’t. It’s in their best interest to help businesses in the community grow and improve. Even better, when you partner with a local lender, you’ll be supporting your community, too!
2. Make Sure They’ll Work With Your Business
When you’re looking into asset-based loans, you’ll quickly find out that some lenders restrict the types of assets they’ll accept. This means you’ll need to do your research and make sure the lenders you’re interested in will work with your business. Discuss the types of collateral each lender accepts and compare your options in detail. If a lender doesn’t typically accept the type of assets you have on hand, see if they’d be willing to make an exception. If they won’t, keep looking. Once you have several lenders in mind, compare the rates and loan terms they offer. You’ll want to go with the lender that will offer you the most money at the lowest interest rate.
3. Be as Helpful as Possible
Getting any type of loan, even one that’s asset-based, requires a deep dive into your company’s financial history. Lenders need to have an understanding of where your business is financially before they can determine the loan’s terms and extend you an offer. Be as helpful as possible and give your preferred lender the documents and information they need quickly. If you’re not comfortable disclosing your company’s financial struggles, you won’t be able to get a loan in the first place.
Keep these tips in mind and you’ll be able to find an asset-based lending partner to work with for years to come.