by Justin Hatch, VP Commercial Finance
Every successful business comes to a point where its leadership has to make some important decisions about its future, whether it means expanding into new areas of operation, increasing capacity or entering a new market. There are also vital choices like expanding facilities or moving into a new property, significant staff expansions and infrastructure upgrades. Many organizations need financial support in these situations, even when they have detailed financial plans and thoughtful strategies for following them in place. That's why TAB Bank offers a wide variety of business financing options that support companies through periods of growth and development.
A/R financing is a highly flexible way for your business to take existing invoices sitting with your accounts receivable department that are waiting for payment and quickly turn them into working capital. Instead of having to wait for your customers to make a payment - which could take days, weeks or even months, depending on the industry in which you operate - you can speed up the timeline significantly by working with a financial institution. A good partner will allow your business to facilitate the increased spending that comes along with a major business decision by more quickly acting on your accounts receivable invoices.
One key element that sets A/R financing apart from many other types of funding is the flexibility it offers. Businesses that need quick access to funding can use as many invoices as needed as collateral, then easily slow down or even stop the process once they have the funding they need. There are no long-term commitments or years of loan repayments to worry about. Instead, businesses can easily fund their changes and improvements in a highly customizable way.
Asset-based lending allows your business to be more creative when working with a lender and find an effective solution for the financial needs that come along with a wide variety of business decisions. This approach to lending isn't too far removed from traditional financing, in the sense that it considers some core business assets as the basis for the financing provided. Where asset-based lending stands out is the wide net it casts, moving past only your cash flow and balance sheet to consider important, potentially substantial assets such as accounts receivable, inventory and, in some cases, the equipment your company uses to operate.
This broader approach to financing allows more of your company's strengths to come into play as you seek out capital for a critical business need. The end result is more funding without higher rates that provides key support as your business changes and grows.
For the trucking and transportation industry, new equipment can be especially expensive but also a key part of many strategies for business growth. Equipment financing helps your business avoid the need for massive outlays of cash when a new truck or other piece of equipment needs to be brought on board. Instead, your organization can spread the cost of the vehicle across many payments, increasing financial stability and avoiding major drains on working capital in a short period of time. We even offer options to refinance existing loans, potentially providing better terms for the remainder of the deal.
These financing options can help your business grow as it makes major operational decisions. When you choose TAB Bank as your financial institution, you have a partner that focuses on building strong relationships, providing accurate advice and guidance and making sure your business needs are addressed in the best way possible. To learn more, get in touch with us today!