Bankers traditionally look at available cash flow of a company (basically its operating profit), when considering the creditworthiness for a loan. But some healthy businesses don't fit nicely into that approach.
An Asset-Based Lending approach can be a better way to secure capital for those businesses, says Keith Broyles, Senior Vice President and Head of Asset-Based Lending at Cambridge Savings Bank, in this podcast. Asset-Based Lending typically focuses on working capital loans based on the value of accounts receivables and inventory and/or term loan based on value of equipment.
Listen as Broyles discusses:
- Industries where Asset-Based Lending is common.
- How Covid-19 is impacting the demand for Asset-Based Lending.
- How to approach an asset-based lender.
- Why an abundance of capital means borrowers have more lending options now compared with previous business slowdowns.
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