Sometimes, a company’s credit score is not high enough for the business owner to take out a loan from a traditional lender. However, if the business has other types of assets, it may have the option to borrow from an asset-based lender. Check out these tips for using asset-based lending to help you get the most out of your loan.

Have Reasonable Expectations

Expect and understand that you’ll need to provide plenty of information and documentation to lenders who focus on your assets over your credit history. It won’t be enough simply to state that your business brings in a certain amount of income. Potential lenders will likely want to see proof of your current income and expenses, projected income and expenses and current inventory so that they can determine if any problems are likely in the future. While this may feel invasive, it will be necessary if you want to receive financing.

Seek Out Understanding Lenders

Seeking out lenders who are more understanding is the best idea. They are more likely to work with you even if your assets aren’t quite what they’d expect or like. Asset-based lending tends to have the best results when you borrow from a company that already has strong ties to small businesses or that began as a small business itself. The owners of these types of finance companies understand what it’s like to build from the ground up and are often more sympathetic and lenient about requirements.

Build Long-Term Relationships

Just like personal relationships, business relationships thrive on establishing a long-term connection that builds trust. When working with asset-based lenders, it is important to build a long-term relationship and to always be trustworthy. If you are ever late on a payment or see a slowdown in profits, be honest about the situation. Telling white lies about the situation simply makes you look untrustworthy. It is important to remain in good standing with any lender you use, even when ending the contract. This way, the financer is still an option should you ever need further credit assistance in the future. Remember, for your company to be viewed as professional, you must act professionally.

Regardless of whether you need to find a provider of asset-based lending for a short-term loan or a long-term relationship, it is important to research the business. Check into licenses and reviews to ensure you’re borrowing from a reputable company that has your best interests in mind.