New Ways To Raise The Cash Required For A Workout
Capitalism works; if only our government leaders would let it do its thing we would move into growth a lot faster than we will by way of all the stimulus money. The markets correct themselves through innovation, creativity and basic rules of supply and demand.
Where there is opportunity there will be activity.
The shutting down of traditional lending facilities, banks willing to support growth and development of small businesses by providing them with the capital they need, has spawned and nurtured a new source of creative, innovative, lenders. Private lenders are filling the void with all sorts of innovative lending products.
The first innovation is their willingness to be flexible, to be willing to evaluate a fact pattern and adjust to the customers’ needs and lend. They are not restricted to hard and fast rules that force every borrower into the same equation but rather evaluate the risks on a case-by-case basis. This is innovation.
We are finding lenders willing to finance on cash flow, a very powerful concept. Lending on accounts receivable is very powerful. Merchant machine financing works. Credit worthiness has become far less controlling and very supportive of new lending. Asset-based lending is becoming more available and very helpful.
It is clear that a workout requires cash to facilitate the implementation. Without capital it cannot be accomplished. Fortunately, capital is now available.
