There are 35 million small business owners in the U.S. alone. Often these up and coming business leaders work like master jugglers, balancing customer needs, managing operations, and constantly looking for opportunities to grow. 

But in this rapidly changing business environment, where success and failure can take many different forms, sometimes the very thing that fuels an entrepreneur’s ambition – expansion and growth – can put a strain on their most vital resource: cash flow.

That’s where asset-based lending (ABL) through Bridge Business Credit can be a smart solution. Often overlooked in favor of traditional loans, ABL offers a powerful way for small businesses to unlock the value tied up in their existing assets, providing a crucial safety net for cash flow and the capital needed for strategic expansion.

Unlike traditional bank loans that heavily rely on a business’s credit history and profitability, ABL focuses on leveraging company-owned tangible assets a company owns. These assets can include accounts receivable, inventory, equipment, machinery, vehicles, and other capital assets. 

Lenders provide a line of credit, or a term loan based on a percentage of the value of these assets. This opens access to capital even if a business is young, has a less-than-perfect credit score, or experiences seasonal fluctuations in cash flow.

Fueling Growth Ambitions

“For small businesses, ABL is also a strategic tool for expansion, such as purchasing new equipment using existing equipment as collateral, expanding inventory, and funding sales and marketing activities,” according to Bridge Business Credit CEO Rhett B. Rowe. “Our growing client base has seen more companies looking for that extra financial boost to propel their growth plans..” 

A well-planned ABL can be a powerful tool for businesses with significant tangible assets. It’s particularly beneficial for fast-growing companies that need flexible access to capital, businesses with seasonal cash flow fluctuations, companies with strong assets but limited credit history, and businesses undergoing restructuring or turnaround situations.

For companies looking for a way to safeguard cash flow while pursuing growth strategies, a call to Bridge Business Credit is a smart first step. Bridge experts can analyze and determine if asset-based lending is the right fit for your unique circumstances.