One main advantages of alternative commercial finance is that it does not require businesses to have a perfect credit score. In fact, many alternative lenders are more interested in the business’s cash flow and potential for growth rather than their credit history. This makes it an ideal option for businesses that may have been turned down by traditional lenders in the past.
Additionally, alternative commercial finance often offers more flexible repayment terms, allowing businesses to repay the loan based on their cash flow and revenue.
ABL is commonly referred to as factoring’s big brother since many early stage business owners involved in manufacturing and distribution and utilizing factoring for cash flow solutions eventually will evolve to the use of a larger Asset-Based Lending arrangement for the financing of their inventory and equipment. Asset-Based Loans can be structured as revolving credit.
