How Asset-Based Lending Can Improve Cash Flow During Seasonal Off-Cycles
Fact-checked by: Bruce Sayer
Asset-based lending works well for all sorts of companies that are growing quickly, but if you own a business that experiences seasonal fluctuations, this loan option can be especially beneficial. An asset-based loan provides the funds needed during those off-cycles when cash flow may be reduced. And, this type of loan not only improves your cash flow but can help accelerate your trade cycles.
Seasonal Businesses Can be Profitable all Year Long
Let’s take a company that specializes in holiday inventory as an example. This company has a big presence and rings up huge sales during the winter holiday season, but experiences seasonal off-cycles after the holidays that will last until the following autumn.
If this holiday-themed company were to apply for an asset-based loan, they would receive working capital that they could use to continue their business growth during their off-cycle. This capital might be used for entering new markets, paying suppliers, or moving forward with new ventures. This holiday-themed company would not be able to conduct these activities with a low cash flow during the off-season. Asset-based lending can therefore give this company the funds needed to move forward during the off-season.
Even Out Cash Flow Fluctuations
Asset-based lending helps all kind of businesses and stores operate all year-round – whether they are closed for the off-season, or if they are expected to experience the unpredictability of highs and lows. The holiday-themed company used in the example above is one of many types of businesses that experience cash flow fluctuations.
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Since 2006, eCapital has been providing flexible alternative lending solutions to client companies needing the confidence of having a trusted financial partner. Our customer base continues to grow as our reputation for dedicated service and forward-thinking alternative lending solutions to even the most complex situations endures.
For more information about eCapital and how your company can benefit from flexible, tailored alternative lending solutions, visit eCapital.com.
ABOUT eCapital
At eCapital, we accelerate business growth by delivering fast, flexible access to capital through cutting-edge technology and deep industry insight.
Across North America and the U.K., we’ve redefined how small and medium-sized businesses access funding—eliminating friction, speeding approvals, and empowering clients with access to the capital they need to move forward. With the capacity to fund facilities from $5 million to $250 million, we support a wide range of business needs at every stage.
With a powerful blend of innovation, scalability, and personalized service, we’re not just a funding provider, we’re a strategic partner built for what’s next.
eCapital Corp
eCapital Corp. is committed to supporting small and middle-market companies in the United States, Canada, and the UK by accelerating their access to capital through financial solutions like invoice factoring, factoring lines of credit, asset-based lending and equipment refinancing. Headquartered in Miami, Florida, eCapital is an innovative leader in providing flexible, customized cash flow to businesses. For more information about eCapital, visit eCapital.com.
