Arnon Dror international Top 3 Benefits of Asset-Based Lending for Entrepreneurs
Entrepreneurs don’t need an expert to tell them that operating their businesses is never smooth sailing. They never know when they’ll run into financial difficulties. You have probably come across such situations while conducting your market operations. In such instances, many proprietors resort to bootstrapping to make ends meet. However, they may not always get the money they need. This is the reason why they have to depend on reliable financial institutions for help. However, such organizations are not always forthcoming. Individuals managing such establishment lay down stringent guidelines for the loans they provide to the public. Not all businessmen can meet such requirements. This is the reason why many industry experts suggest they should opt for asset-based lending.
Arnon Dror international Why is asset-based lending so popular among entrepreneurs?
Arnon Dror is a former Vice-President (Finance) of US Channel Group in-charge of managing their Xerox Technology Business. He has over 20 years of valuable experience as a senior international executive. During his illustrious career, he held many important positions in a number of multination companies. Many of his colleagues, relatives, and friends say he specializes in many diverse fields. These include international taxation, mergers, negotiations, supply chain management, business modeling, strategic planning, and internal control. He has the distinction of turning the fortunes of many loss-making businesses. You just need to browse through Arnon Dror international profile to know the facts. Today, such establishments have become lucrative concern thanks to his efforts and foresight.
This expert says asset-based lending is a convenient way for businesses to get the money they need. This enables them to tide over any cash crunch situation. In this mode of finance, entrepreneurs use their equipment as collateral to obtain the funds they need. In comparison to conventional loans, it has the following 3 important advantages:
- Convenient
In the case of traditional loans, banks request businessmen to submit a number of documents. Such paperwork normally relates to the financial condition of their establishments and purpose for such funds. Only then do the people operating such institution consider sanctioning the amounts such proprietors request for. Even then, there is no guarantee they get what they ask for. This is not the case with asset-based lending. Under this scheme, owners can get the money they need with any hassle. No wonder it is so popular.
- Flexible
Entrepreneurs opting to avail bank loans need to fulfill stringent guidelines which people are running such institutions impose. For any small business owners, this can prove to be a tall order. In contrast, asset-based lending has fewer restrictions. After all, these owners do provide equipment as a collateral to obtain the funds they need. In many cases, they can obtain a sum equivalent to 80% of the value of this fixed asset.
- Debt-free
Proprietors who opt for asset-based lending to obtain the funds they need don’t incur any debts. As a result, there is no change in their credit scores. This is a far cry from conventional bank loans.
The above 3 important benefits prove beyond any doubt that asset-based lending is indispensable for entrepreneurs. You need have to browse through websites bearing Arnon Dror name to verify the facts. These businessmen can get the funds they need to tide over any cash flow difficulty. Moreover, they still have money left to carry out their expansion programs.
