You don’t have to dilute.

I.  You don’t have to dilute.

Insight from Nathan Yoon and Melissa Wasser 

Thinking about another equity round? Not so fast.

There are other options to finance growth that a lot of operators don’t consider.

For example, asset-based lending (ABL).

ABL allows you to leverage the stable parts of your business to secure funding without diluting equity. You raise capital by pledging assets with resale value or cash flows, such as loans, receivables, or inventory. 

This method can allow you to:

• Maintain more ownership and control over your company

• Use stable, cash-flowing parts of your business to fund expansion

• Raise with more predictable terms & payments

Now, as you might imagine, there are some downsides to keep in mind.

ABL is often accompanied by higher-interest rates, significant collateral requirements and complex agreements.

That being said, depending on your business and capital needs, it could be a good option.

If you’re needing to finance growth, keep an open mind (and do your research 🙏). 

Learn more: Asset-Based Lending vs. Venture Debt, Demystified