Tips for Additional Funding Beyond Accounts Receivable Line of Credit
Successful businesses understand that when their customers are looking for their service or product, they will generally go with the business that stands out or offers what most others don’t. When you are looking for working capital or a line of credit for your growing business, you should do the same.
Allied Financial Corp of Delaware Valley sets itself apart from traditional accounts receivable lenders by also providing funding in conjunction with your accounts receivable loan to get you the cash when it is needed.
You’ll begin with an accounts receivable line of credit which is secured by your company’s accounts receivables. This may be all you need. However, if you need additional funds, you can increase the availability of cash to your company by adding financing that is based on your assets; machinery, equipment, inventory, and property.
The following tips will help you prepare to use your assets for funding
Identify Your Assets
Assets can either be tangible or intangible (goodwill, patents, trademarks, etc.) However, for additional funding from Allied Financial, we will look at your tangible assets:
Tangible assets can include:
Keep Detail Records of your Asset’s Worth
Maintain accurate records of your assets. For equipment, machinery, or vehicles, keep up-to-date records for age, make, model, serial numbers, registrations, service records, insurance listings, cash value, etc. We use this information to help determine the value of these assets.
For inventory it is always important to maintain current inventory records for many reasons including:
- Financial reporting purposes.
- Seasonal tracking reasons.
Protect Your Assets
Keep your equipment, machinery, and vehicles well maintained with accurate service records Preventive maintenance on your equipment and vehicles will keep them running and performing longer and more efficiently.
Insure your assets. Verify that your current business insurance adequately covers all assets.
While it may cost a little more, get replacement-cost coverage. Ask your insurer for a business insurance consultation to ensure both your business and your assets are properly insured.