As a business owner, there will undoubtedly come a time when you will need to apply for a loan. When that happens, you’ll likely be asked to put up some sort of collateral, regardless of whether you choose to go through a traditional bank or an SBA backed loan, or through a private lending company. Why? To protect the lender in the event that you become unable to pay back what you’ve borrowed. However, not all lending companies require you to put up physical collateral.
At Central Capital Group, we make it possible for you to get funding for your small- or medium-sized business quickly and without the need for extensive documentation. What’s even more, we are able to do this without putting much weight on collateral or assets.
Say you own a manufacturing company with a lot of expensive equipment. When applying for a loan through a bank, someone will come to your warehouse to appraise the value of that equipment to in turn be used as collateral. Typically you can borrow up to 70% of the liquidation value of your equipment from an asset-based lender. But what if you still need additional cash? What if you are already factoring your receivables / invoices for cash flow purposes, but you need an additional influx of cash for a marketing opportunity or to buy inventory?
If you choose to apply for another loan, you can no longer use that equipment as collateral while the bank has a lien on it. You also can’t use your Accounts Receivable since the Factor has a lien on them. Luckily, with a company like ours you can still get more money on time. We do not require first lien position on any of your business assets.
At Central Capital Group, we lend businesses the capital they need against the revenue of their business, rather than physical collateral. We will take a look at the overall cash flow of your business to determine what type of funding program you qualify for. Because we do not have to wait for an appraisal, we are also able to fund you in a quick amount of time, allowing you to get back to business sooner.