subject: Structured Finance: Easy, Cost Efficient And Convenient Mode Of Finance [print this page] All business entities require finance to carry out their business activities and other business activities. Without the availability of adequate finance, no business can ever imagine their existence in the long run. But there arises time in business, when conventional loans either seem not a desirable solution or are not possible to get. Here, the structured finance comes into play! Structured finance is an all inclusive term which is used to describe a sector of finance that was created in order help in transferring risk using complex legal and corporate entities.
With the help of the business structured finance, you can get a loan based on strong cash flow performance in the past years. Instead of using other assets as collaterals, funds are provided to the business enterprises based on their past records and history. Business structured finance is the perfect alternatives for those companies which do not have large number of material assets to mortgage for loan or to keep as security. But they possess a strong history of esteemed and loyal client base and monthly billing details, along with their customer's timely and consistent pay histories.
The individual investors or other lenders are often found willing to lend money to such business entities. Irrespective of their structure, they are impressed by the corporations consistent performance and their revered client base and are quite that the company will pay off the loan in the given time. The loan is also provided at comparatively lower interest than the financial institutions. For the business enterprises which are planning to expand their client base or develop a new product and are in the urgent need of quick cash, structured finance furnishes the most cost-efficient and convenient way to enable fund raising.
The structured finance also involves less procedural hassles or fuss. Where in the standard loan, you have to go though myriads of processes and take immense time, the processes of structured finance is faster. Sometimes, the business houses are in the need for cash for a much shorter time period, say for 3 to 4 weeks. They are generally known as the bridging loans as they bridge the financial gap between the purchase and sales. Here, they can get them through the lenders and investors who are ready to offer them at less interest and without keeping any property or asset as mortgage or security. So, get the benefits of the bridging and structured finance and pave way to a substantial business growth.
by: Leapfrogfinance
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