Saturday, 20 August 2022

In Finance

Growing A Business through Asset-Based Loans in South Africa

At some stage most entrepreneurs have the desire to start their own businesses but don’t really know how to manoeuvre. There is one key area where entrepreneurs seem unsurpassed in self-inflicting damage: not having to calculate the cost of implementing their business plan and lack of awareness on the benefits of asset-based loans.

Few people would set off on a voyage to a faraway land without planning the route, calculating the supplies needed and enquiring after conditions along the way. Yet this is precisely what many people do when they start their own small business. Not only do they embark on ventures without adequate investigation and planning, but expect bankers and investors to join them on their odyssey. 

The reality is that bankers are today more interested in the projected viability of a proposed business than any collateral offered. Banks might make profits from interest which they earn but they stay in business by having their loans repaid. What they require therefore is a thoroughly researched and well thought out business plan as a basis on which to make investment decisions.

If you are running a business, whether big or small, there may be times that you lack funds to do business. However, that has changed over the years as there are other alternatives to cater for small business capital need. Applying for an asset-based loan is one of the quickest ways to obtain cashflow. Due to its attractive nature to support small businesses that are not yet eligible to apply for a line of credit from a bank, this type of loan is gaining popularity in the business industry.

According to the Corporate Financial Institute, asset-based loans have provided cash when cash flow is lacking, have shorter repayment periods than traditional loans and are extremely attractive option for small businesses. While the credit limit for asset-based loans is lower than a line of credit, asset-based loans are viable solutions to alleviate sudden temporary financial problem. It is always important to completely understand what you become liable for when considering short-term loans to avoid further damaging to your business plan and reputation.

One of the greatest advantages of asset-based loans is that, upon arrival, you will often get funds within a week. Take it for instance when you have a bill that’s due and outstanding or perhaps you need to purchase stock, an asset-based loan helps you meet your requirements at that particular immediate time. Unlike banks that review your credit report before qualifying you for a loan, and if your credit report has arrears, your loan request will be denied whereas short-term lenders are lenient on your loan by analysing other avenues such as assets values. 

Asset-based loans also facilitate international trade and support commerce between nations. Without asset-based financing, new businesses might never be launched, or growth and expansion might be compromised. 

Businesses can divert to asset-based financing to rent or lease equipment that they require for a business to operate, all thanks to the inherent flexible nature of asset-based loan. Asset-based loans do not require drawn-out and costly process that could interfere with a borrower’s needs. This is quite helpful because asset-based loans lead to quick access to capital. Aside from fast approval, applying for asset-based loans isn’t difficult because they have more relaxed qualification requirements which are easier to meet in full. 

Where then is the best place to seek these asset-based loans? There are a number of reputable firms to seek such loans from, one of the most reliable and professional financial services firm in Gauteng, South Africa, is the Cash Center

Cash Center South Africa, a registered financial service provider (Reg. No. NCR 11859), is an asset-based lending company that specializes in Pawning and Buying Vehicles, Jewellery, Gold, Diamonds and High Valued Assets. The Cash Center has a 100 percent approval rate and pay out within an hour on high value, luxury commodities, and precious metals like gold and diamonds. The firm does not ponder on credit checks or blacklisted accounts but is open to all individuals with all sorts of different business plans or start-ups.  

The firm offers instant cash for all types of assets inclusive of jewellery, vehicles, boats, amongst the least. They have the utmost discretion, professional service and fair assessment of assets.  The amount of cash the firm loans depends on the value of the given asset.  

If you are looking to use your asset, the first step is the quotation process, where you give detail of the asset you want to use as collateral and the firm makes an offer which indicates the loan amount. Secondly is the transaction process which includes making an appointment to meet at their evaluation centres for the asset to be appraised. 

After that the client either delivers the asset to their secure Depot or they collect it themselves. The firm then makes an electronic transfer into your bank account. Thirdly is another option to buy back your asset.  The buy back is the final step to receiving your asset back. The firm makes sure that your asset is returned in the same condition as it was received.

On the other hand, if you are selling your asset, Cash Center takes the hassle and risk of selling the proposed asset whether be it jewellery or vehicle. They guarantee the best market related price for your asset and immediate payment. 

Cash Center offers a variety of options to suit individual’s needs, asset-based tailored made business loans with 30-, 60-, or 90-days repayment periods. Whether you are looking for to Pawn or Sell your asset, Cash Center has the solution to your problems. 

Asset-based loans are meant to solve the cash flow issues of borrowers. If your business is strapped for funds, these loans can be considered as your first line of defence. But, given a variety of asset-based loans to choose from, it is very wise to first evaluate your choices that suites with your desired business and then settle for the one that is best.  

Source: Corporate Financial Institute

Cabanga Media Group (Pty) Ltd is publisher of thoughtful business magazines in several African markets, whose titles include Cabanga Magazine in South Africa, Moakanyi Magazine in Botswana, Mufakir Magazine in Egypt, Fikiria Magazine in Kenya, Yaada Magazine in Ethiopia, Ironu Magazine in Nigeria, and Ganizo Magazine in Zambia.