Equity-based lending is quickly gaining attention as an innovative financing solution for businesses. Compared to traditional forms of lending, equity-based lending relies on an equity stake in a business as collateral, as opposed to traditional assets. Moreover, this type of financing is particularly advantageous for small and medium-sized businesses that have difficulty accessing traditional loans. In this blog post, we will look at the benefits of equity-based lending and why INBANET is a great choice for your financing needs.
5 Reasons to Use INBANET for Your Financing Needs
Less Risk for Borrower:
Equity-based lending implies that the borrower offers a percentage of their company’s equity to the lender as collateral. This means that the borrower does not need to guarantee the payment in the same way as they would with a traditional loan. The risk is not borne solely by the borrower, as the lender has a vested interest in the company’s success. By sharing risk, both parties are incentivized to work together toward the company’s growth and success.
Accessible Financing:
Traditional loans can have long, complicated, and time-consuming application processes. Equity-based lending, on the other hand, can be a simpler and more cost-effective method of financing. Since the lender is already invested in the success of the company, due diligence time can be reduced substantially, making timely financing possible.
Flexible Terms and Structure:
Traditional loans often have restrictive terms and structures. Conversely, equity-based lending allows for more flexible terms and structures that best suit the borrower’s unique needs. Since this type of financing typically does not require immediate repayment, lenders can provide borrowers with more flexibility to repay their debts. Lenders are incentivized to work with borrowers to develop unique repayment plans and terms, ensuring success for both parties.
Potential for Growth:
Equity-based lending can be a significant boost to your business’s growth potential. Since lenders have a stake in the company’s success, they can become your company’s biggest advocates and drive your business to new heights. Sharing in your firm’s success, having invested interest in your growth, and the resources provided by Inbanet, will enhance opportunities for business growth and development.
No Credit Requirements:
Traditional lenders require extensive credit checks and score compilations to lend money. This can make traditional loans more difficult to obtain for new and struggling businesses. Equity-based lending, however, does not require prior credit checks because the borrower’s equity stake acts as collateral. This makes equity-based lending an excellent option for businesses with less than ideal financials.
Equity-based lending has numerous benefits for small and medium-sized businesses, including less risk for borrowers, accessible financing, flexible terms, growth potential, and no credit requirements. INBANET is a top choice for those seeking other financial solutions vs traditional lending vehicles. With a dedicated team of experts in equity-based lending, INBANET Financial Solutions offers the financial resources necessary to grow your business. With decades of combined experience in equity-based lending, INBANET’s team of experts is here to help unlock your business’s full potential.
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