Commercial Capital Training Group Leader Lends Expertise to Business Review
Kris Roglieri, founder and CEO of the Commercial Capital Training Group, was featured in a recent Albany Business Review article discussing an alternative form of financing for businesses through asset-based lending.
In recent years, as the economy began to take it’s toll on the financial statements of secure companies, many have turned to find a sustainable lending path through asset-based lending. Asset-based lending is a financing product for businesses that allows them to access capital based on their current assets. It’s a way to tap into instant liquidity. Assets can be anything from equipment to inventory and can assist a business when money is tight.
Roglieri, who is also Chief Executive Officer of Prime Commercial Lending, spoke about the recent uptick in asset-based lending and other forms of credit. As CEO of Prime Commercial, he brings a lot of lending knowledge to companies caught in the thick of this rocky economy.
Roglieri stated “A lot of businesses don’t realize they are sitting on valuable assets they can draw capital from.” He goes on to discuss that when determining if asset-based financing is right for your business, “We will look at management and financials, but that is only about 20 percent, assets are 80 percent. We are looking at the quality of the assets and the company’s growth potential.”
Although the costs associated to asset-based lending can be higher than a conventional loan, it is considered to be be a safer type of loan for both the lender and borrower. It is perceived that asset-based lending is more geared toward smaller companies that are growing quickly, are fairly young and have not yet hit their cash flow stride. This type of lending also tends to be more “proactive” that a traditional loan. With asset-based lending, a lender will stay focused on the business, keeping a closer on eye on it’s progress and will conduct more frequent appraisals on the assets. This in turn allows the lender to identify any issues that may be occurring with the business and can then step in to assist with the issue.
Roglieri goes on to discuss factoring and how if you do not have sufficient equity in your assets, then factoring your accounts receivables may be a better option to access the capital you need to grow your business.
Click the image to read the full article.