In the world of financing, the goal for business borrowing is to grow and generate more profits. But what happens when things slow down, and you are struggling to keep up with the monthly payments? This all depends on what type of financing was used.
Scenario 1 – You entered into an Equipment Finance Agreement and the only lien placed is that on the specific piece of equipment financed.
Scenario 2 – You entered into a Traditional Business Loan and a “blanket lien” was filed. This lien gives the lender legal claim to seize and sell any and all business assets currently owned as well as future assets. This includes commercial real estate, equipment, inventory, accounts receivable, etc. Blanket liens appear on business credit bureaus and limits access for additional borrowing.
What type of financing is better for YOUR business? Alliance Leasing & Financial Services, Inc. NEVER places blanket liens.
CALL US TODAY TO SEE HOW WE CAN HELP YOU GROW 800-449-0674.