A model of financing for trying times
Asset-based financing is a form of lending that could benefit small businesses that are struggling to raise money
There is hope for small businesses suffering from the impact of the Covid-19 national lockdown that have been unable to look to financial institutions for funding assistance. Small businesses are aware that unsecured loans are hard to come by, and many businesses lack sufficient collateral to satisfy a financial institution’s requirements for the purposes of advancing a secured loan.
We could learn a thing or two from First World countries like the US and UK, whose economies have benefited from the use of “borrowing base financing” mechanisms, otherwise known as “asset-based financing”, for several years. Borrowing base financing is a specialist financial product designed to target developing loan markets and assist small businesses, particularly those experiencing drastic cash flow shortfalls...
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