Asset based loans: A blessing in disguise
Asset-based loans are the primary requirement of any business today. Everyone knows that a business's finances need a boost in sluggish market conditions. These loans can actually be used to finance the operations of the business when the receivables are not met on time. These receivables might be slow because either the customer is facing a slow market or there is a lack of sales for the business itself. The lack of sales usually happens for businesses that face seasonal variations in sales. As a result, either the lack of funds from the debtors or a sluggish market can actually lead to a halt in operations, which can be dangerous for any business. But asset-based loans ensure that businesses continue to have a stable cash flow despite poor sales or defaulting debtors. However, there are also certain businesses where it is customary to have high receivables to encourage sales. Such businesses build good business relations based on their lending to regular customers. So, the ...