The recession has made it more difficult than ever for small and medium sized businesses to get bank financing.  For fast-growth companies, the credit crunch we’re in is especially challenging.  Yet in spite of the challenging environment, there are still companies out there with high growth rates.  Growth can be a double-edged sword, though: as more resources are expended to keep growing, growth can feed on itself.  Some companies grow themselves right out of business.

There is hope, however, for companies in this predicament.  It comes in the form of a financing alternative known as asset-based lending (‘ABL”).  ABL is ideal for companies that can’t qualify for traditional business loans due to fast growth or other extenuating (and often temporary) circumstances.  Startup firms and those with heavy seasonal inventory needs are good examples, but any company with a solid foundation and a history of success that’s facing temporary financial challenges can benefit from ABL.

In this paper, we discuss the current credit environment, its impact on small and medium sized businesses and what companies can do to weather the storm . . .