What is the rate for a small business loan in California? “My company is looking for an asset based loan, but we do not want to pay too much!” This is the main concern when searching for a commodity finance product such as a commercial or home mortgage. Let’s face it, if I am refinancing my home mortgage, I do not care about the customer service of the mortgage company because I expect them to competently manage my mortgage needs. Further, I would not pay more for a perceived better customer service experience. My main concern, as with all of us when shopping for a mortgage, is rate.
However, in the asset based loan world, things are much different. For example, as a business owner looking to deliver on a sizeable purchase order you have been pursuing for months, cost is not the primary concern. Availability of cash is. This is because if you fail to deliver on your first purchase order, you will likely never receive another one from the same customer. Your reputation on being able to deliver is what keeps the orders coming in.
We deal with business owners on a daily basis that are under extreme timeline and performance pressure from a customer they have been pursuing for months. Once the opportunity finally comes, they simply must deliver! They view the lending partner as an asset based loan partner versus just a pocketbook. Small business loans in California are much easier to obtain when pursuing an asset based loan versus tradition bank financing.
Our private capital sources need to earn a return that is commensurate with the risk they are taking. It is a return that will both assist the borrower in their growth goals and earn the lender enough return to justify the risk of capital. A flexible asset based loan that allows the borrower a chance to expand their top line revenue where one did not exist before through traditional financing avenues.
So, the rate discussion is obviously something that is covered, but not nearly as important as it is with commodity lending. Loan rates on asset based loans range wildly depending on the asset being financed, industry the company is in and cash flow of the company.
If your business could use a flexible small business loan in California to grow your company and meet your full potential, we would like to speak with you!
To your success!
Patrick Zazueta | Founder
Huntington Coast Capital, Inc.