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Is Asset Backed Lending for Your Business???

3/30/2023

Asset-based funding, also known as asset-based lending, is a type of financing that has gained popularity in recent years due to its flexible and secure nature. This type of funding provides businesses with a means of securing funding by using their assets as collateral.
Asset-based funding is particularly useful for businesses that have a high value of assets but may not have a strong credit history or have limited cash flow. Assets can include inventory, accounts receivable, equipment, and real estate. These assets are assessed for their value, and the business can borrow against the value of the assets. The lender will then secure the loan with a lien on the assets.
One of the key benefits of asset-based funding is that it allows businesses to access capital quickly, often within days or weeks. The lender is primarily focused on the value of the assets and is less concerned with the business's credit history or cash flow. This means that businesses that may have been turned down for traditional bank loans due to poor credit can still access the funding they need.
Asset-based funding can also be a flexible financing option. The loan amount can increase or decrease as the value of the assets changes. This means that businesses can adjust their financing needs based on their current asset value, allowing them to access more capital when needed.
Another advantage of asset-based funding is that it can be more cost-effective than other types of financing, such as factoring or invoice discounting. These types of financing often have high fees and interest rates, whereas asset-based funding typically has lower fees and interest rates.
However, it is important to note that asset-based funding may not be the best option for all businesses. It is crucial to understand the risks associated with using assets as collateral and to carefully consider the terms and conditions of the loan.
In conclusion, asset-based funding can be an effective financing option for businesses that have a high value of assets but may not have a strong credit history or consistent cash flow. It can provide quick access to capital, flexibility, and cost-effectiveness. However, as with any type of financing, businesses must carefully evaluate the risks and benefits before making a decision.

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New HVAC Client Gets a Line of Credit!!!!!

3/15/2023

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HVAC Business get a line of Credit from DAC.
This week we had the pleasure to speak with an enterprising entrepreneur with an HVAC business, it was clear that DAC had played a crucial part in helping them power ahead.
We secured $135,000 back in Fall 2022 and then supplemented this cash injection with a handy line of credit of $55,000 - plenty enough for the materials they needed to get their project up and running!

They have assured us they will be counting on DAC again next time when additional capital is required.

Business Owners get your Line of Credit Now:
https://davidallencapital.com/payment-processing/102338928

#lineofcredit #businessowners #business #business #capital #businesscapital #businesslineofcredit

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What are the Benefits of a Business Line of Credit?

3/15/2023

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In the world of business, having access to a line of credit can be a game-changer. Business lines of credit are flexible, revolving credit accounts that allow business owners to borrow money up to a certain limit, pay it back, and then borrow again. Here are some benefits of business lines of credit:

Flexible Financing: One of the biggest advantages of business lines of credit is the flexibility they offer. Unlike traditional loans, business lines of credit don't require you to use the funds for a specific purpose. This means you can use the funds for unexpected expenses or take advantage of business opportunities that may arise. It can be helpful when the business needs immediate funding for short term needs like inventory or payroll.
Access to Cash: With a business line of credit, you can access cash when you need it. Once approved, you can draw from the line of credit as needed, up to your approved limit. This can be especially useful for businesses that experience seasonal fluctuations in cash flow or need to take advantage of time-sensitive opportunities.
Lower Interest Rates: Business lines of credit often have lower interest rates than other forms of financing, such as credit cards or merchant cash advances. This can help you save money on interest charges and improve your cash flow.
Build Credit: Using a business line of credit responsibly can help you build your business credit score. By making timely payments, you demonstrate to lenders that you're a reliable borrower, which can help you qualify for larger loans in the future.
No Collateral Required: Unlike secured loans, business lines of credit don't require collateral to secure the loan. This means you don't have to put your assets, such as your home or business, at risk.
Improve Cash Flow: With a business line of credit, you can improve your cash flow by having access to funds when you need them. This can help you manage your accounts payable, pay your vendors on time, and take advantage of early payment discounts.

Business lines of credit can be an excellent financing option for businesses of all sizes. They offer flexibility, access to cash, lower interest rates, and can help you build credit without requiring collateral. If you're considering financing options for your business, a business line of credit is definitely worth considering. See if you Business can be approved for a Line of Credit, fill out the free application, just click the "Line of Credit" link in the menu above.

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What are Revenue Based Capital and Lines of Credit??

3/13/2023

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Revenue-based capital and lines of credit are two financing options that can help businesses secure the capital they need to grow and succeed. In this blog post, we will explore the benefits and drawbacks of these two financing options and how they can be used to support a business.
Revenue-Based Capital:
Revenue-based capital is a form of financing where a business borrows money from a lender in exchange for a percentage of its future revenue. This type of financing is becoming increasingly popular among startups and small businesses because it does not require collateral, has flexible repayment terms, and does not dilute ownership.
With revenue-based capital, businesses repay the loan based on a percentage of their future revenue. This means that if the business has a slow month or quarter, the repayment amount will be lower. Conversely, if the business has a strong month or quarter, the repayment amount will be higher. The repayment period is typically between 12 and 36 months, depending on the lender.
The benefits of revenue-based capital include:

No collateral required: Because the loan is based on future revenue, there is no need for collateral, making it a good option for startups and small businesses that may not have significant assets to use as collateral.
Flexible repayment terms: The repayment amount is based on a percentage of future revenue, making it a flexible repayment option that can adjust to the ups and downs of a business.
No dilution of ownership: Because revenue-based capital is not equity financing, the business owner does not have to give up any ownership in the company.

However, there are also some drawbacks to revenue-based capital, including:

Higher interest rates: Because revenue-based capital does not require collateral, it is considered a higher-risk financing option, which means that interest rates can be higher than traditional loans.
Repayment terms: Because the repayment amount is based on a percentage of future revenue, it can be challenging to predict cash flow and budget for loan payments.

Lines of Credit:
A line of credit is a type of financing that allows a business to borrow money up to a predetermined limit. The business can draw on the line of credit as needed, and interest is only charged on the amount borrowed. Lines of credit can be secured or unsecured, and the interest rates are typically lower than other forms of financing.
The benefits of lines of credit include:

Flexibility: A line of credit provides flexibility for a business to borrow the amount needed when it is needed.
Lower interest rates: Lines of credit typically have lower interest rates than other forms of financing.
Building credit: Consistent and responsible use of a line of credit can help build a business's credit score, making it easier to secure financing in the future.

However, there are also some drawbacks to lines of credit, including:

Approval can be difficult: Securing a line of credit can be challenging, especially for startups or businesses with a limited operating history.
Risk of overborrowing: Without proper financial planning, there is a risk of overborrowing, which can lead to financial trouble down the line.

In conclusion, revenue-based capital and lines of credit are two financing options that can help businesses secure the capital they need to grow and succeed. Both options have benefits and drawbacks, and it's essential to consider the specific needs of the business when deciding which financing option to pursue. By understanding the pros and cons of each option, businesses can make informed decisions to ensure their financial success.

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My name is Bill Schall I am a Certified Residential Appraiser in New York. My company does Real Estate Appraisals in Suffolk and Nassau Counties.

In addition, we help our clients with business services in our partnership with David Allen Capital, Inc. Our service include: Business Capital, Employee Retention Credits, Lines of Credit, Payment Processing and more.

Is Asset Backed Lending for Your Business???

New HVAC Client Gets a Line of Credit!!!!!

What are the Benefits of a Business Line of Credit?

What are Revenue Based Capital and Lines of Credit??

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