Date Added: Jul 2009
With bank loans harder to come by, more small companies are turning to asset-based lending. When credit was flowing more freely, many small businesses gravitated away from collateralized loans. It's easy to see why. Few people want to pledge their assets. And the fees are pretty high. But times change. Now that credit is tight again, it may be harder to develop a relationship with these lenders. Historically, asset-based lenders have existed to provide collateralized loans to people who can't meet the conditions for a cash-flow-based loan. Ideally, you would have cultivated these folks in good times when you didn't need their help so much.