Every business is in need of finance at some point during their journey. There are various options to manage this financial need and every organisation searches for an ideal option based on the nature of their business.
Of all the options, one trending option which businesses frequently favour over the others is asset funding. The best part about asset funding is that you do not have to follow a lengthy application process and wait many months for it to get approved.
Instead, all you need to do is search for a reliable, experienced and qualified company who can understand your requirements. But the main question is how do you get to know about such a company?
The simplest and easiest way is to skip through the website of companies offering this service and get answers to the following questions:
What experience does the company have?
This is perhaps the most essential question that you should be asking every potential lending institution you are interested in. The terms offered and diverse clientele are two key factors which determine the experience of the company.
Apart from these, how well do they understand the risks involved as well as the needs of your business are some other factors that you should give consideration to. Read through any/all client reviews mentioned in the lender’s website.
This will give you a clear idea about the working pattern of the company and how they cater to varied asset based needs.
How are they funded?
Bank based asset financing companies follow the same process as high street banks to acquire funds such as selling certificates of deposits to investors, customer deposits and others. On the other hand, independent business lenders have different finance sources like private equity, lines of credit and hedge funds.
As long as the company has continuous stability and has diverse financial resources the independent company is considered to be reliable.
How capable are they to finance your specific asset mix?
Inventory, equipment and accounts receivable are the common assets that lenders provide financing for. In fact, some lenders develop a niche by offering funds on one particular asset.
However, it is tricky to find a lender that is comfortable with offering the required funds with your asset mix. The truth is that a combination of assets increases your chances of securing the capital. Nucleus Finance is one experienced company which offers a number of asset based financial lending products to SMEs in the UK.
How long have they been a part of the industry?
There is no doubt that experience counts but the number of years a lending organisation has remained in the industry also holds equal accountability. The operational tenure of the company signifies whether or not they can survive the odds in the lending industry.
The lending company should have a minimum of five years of industry experience coupled with a stable and diverse track record.
How do they charge you?
It is not compulsory that all independent finance lenders charge a you higher rate than what is usually observed in the market. There are some who charge a reasonable rate while others negotiate their prices.
On the other hand, there are some companies who believe in implementing a transparent and easy process. They understand their client’s need for finance and charge a fixed monthly fee which makes it convenient for them to manage their business plan as well as the overall finances of the organisation.
Such companies employ a consultative approach wherein they adopt fast yet efficient repayment techniques. They can handle complex and large funding requirements successfully.
What is the Process for customer contact?
The simplest and best way to get in touch with these companies is to either mail or call them and enquire about their services. You can talk to their team.
Once you have a word with their experts, you can mutually decide a particular time and date when the professionals can visit your business for a site visit.
This is the best opportunity for you to know more about the lending company and vice-versa. In fact, if you have any query then you can ask them during their visit and they can also learn more about your business. This way, they can understand your needs in a better way and offer you a suitable funding solution.
You can also ask the expert to help you reach out to one of their existing clients.