There are many types of asset financing companies and plans that you can avail with.
• By banks.
- It is based against assets (e.g. accounts receivable, buildings, and vehicles).
• Flooring by finance companies
- It is based against the inventory you purchase. Most car dealerships, for example, use such system.
- There are two types of flooring loans:
1. By invoice. The finance company serves as a middle man. You can place your order to a supplier, then, the flooring company will prepay the invoice with all the available discounts. After, within a number of days, you will need to repay the invoice.
2. Based on individual piece inventory. Automobiles, for example, carry a Vehicle Identification Number (VIN). The dealership, then, has a number of days after the car is sold to pay the finance company.
Remember, there is no such thing as a 100% free financing. Banks and ABL loan companies are profit-driven entities and beings; hence, expect that there will be an amount of interest that you need to pay together with the principal amount.
Furthermore, you should go for the hunt on looking the most competitive interest rates and favorable terms that will work on your advantage to finance your business. The loans should be structured in a way that is within your financial capability, at the end of the day. There are possible worst case scenarios and problems that you may face along the way. So, yes, you have to be ready and resilient enough.
Stick within your means and remember to increase your resources.