Monetizing Assets To Create Credit

For small business owners, having access to credit is essential. A revolving line of credit is an important source of financing which can be used as needed. Unfortunately, many entrepreneurs do not have the business credit ratings to get lines of credit through traditional channels. Because of this, many business owners are monetizing assets to create lines of credit without getting caught in the red tape of traditional banks and credit providers.

How Businesses Are Monetizing Assets

Asset based financing is, as the name implies, monetizing assets to create a revolving line of credit for a business. “Assets,” in this case, are comprised of property owned by a company. Property is defined as inventory, equipment, vehicles, real estate, and receivables. By monetizing assets, a line of credit is created, which can be accessed at any time. Unlike a traditional bank loan, business owners do not have to use the amount available all at once. Asset based financing can be used as little or a much as needed.

Credit Available Is Not Designated For Anything

Traditional bank loans have an intended use, be it for real estate, equipment, advertising, hiring staff, etc. If businesses use the capital from those loans for anything other than the designated purpose, they are in danger of violating the lending agreement. The line of credit available through monetizing assets, on the other hand, can be used for anything. There are no restrictions. If a business needs to allocate some capital for supplies, part for advertizing, and some for traveling to a trade show – they can do so without repercussion. Asset based financing is treated just like any other revolving line of credit.

Monetizing Assets Is Not A one Shot Deal

Asset based financing is one of those rare programs that rewards business growth. As a business increases sales, upgrades equipment, or moves into larger facilities, the line of credit will increase in value. As your business grows, so does the spending limit on the line of credit created by monetizing assets. Contrast this with bank loans, which actually eat into revenue and force businesses to allocate a good portion of capital to paying down the balance on a regular basis, regardless of sales.

Get Asset Based Financing Today

If you would like to start monetizing assets to create a revolving line of credit, call CounselPro Lending at 1-888-292-3322. Our team will work with you directly to go over your assets and structure a business line of credit to help you reach your goals.


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