Asset-based lending can be more expensive than a bank loan or line of credit, but for some it may be the best choice, providing flexibility and cash flow when others won’t.
The question of value is crucial in business, whether it’s how much you should pay to acquire a competitor, the fair price for that new piece of equipment or how big a share of your company you can pass along to your heirs.
It’s the meeting no business owner wants, an adult equivalent to sitting in the principal’s office.
Only instead of a principal, the person calling you in is a banker. And instead of the dreaded “permanent record,” the folder on the desk is an agreement for a business loan, a line of credit, equipment financing or some other form of borrowed money that helps keep the company afloat.