Experienced Kansas City Construction Law Firm
Call Our Team Today

Companies looking stronger in 2018

In the first quarter of 2018, 35.2 percent of small businesses reported being able to secure financing from a bank. This compares to just 32.2 percent in the first quarter of 2017. Furthermore, 25.4 percent of small businesses said that they could get asset-based financing. These figures were obtained through the Private Capital Access Index (PCA Index), and it is a sign that smaller companies are in a stronger financial position than they were a year ago.

A small business is defined as one that makes less than $5 million in revenue per year. Middle market companies are defined as those making between $5 million and $100 million per year. The PCA Index for both categories was the strongest in the first quarter of 2018 since it was developed in 2012. When businesses have access to capital, they have an increased chance of both growing and sustaining their growth. Furthermore, smaller companies are obtaining loans based on assets as opposed to factoring.

Asset-based loans use real estate, equipment or other items as collateral. They tend to have better terms, and the fact that more companies are moving toward them as opposed to factoring loans shows that they are growing stronger. In the first quarter of 2018, 53 percent of businesses said that they had sufficient cash flow.

Asset-based lending may be effective for those looking to secure financing for commercial development. For instance, a person may use another property as collateral to reduce the odds that a lender won't be repaid. Developers may also use equipment, an investment portfolio or anything else of value to guarantee that a loan will be repaid. An attorney may review the terms of a loan to be sure that a borrower understands the possible consequences of not repaying it.

No Comments

Leave a comment
Comment Information

Our condo association was faced with monumental construction issues thanks to the original developer of our complex. We were cash poor and in no position to get legal representation without a contingency fee arrangement. Luckily for us, Scott Long and Burke Robinson were willing to take us on as clients. Their work ethic, professionalism and knowledge of condominium construction served our association very well. Any association would be well served in hiring these gentlemen to represent them.

Board of Directors - Plaza Gardens on the Lake Condominium Owners’ Association Lake of the Ozarks, MO

Read More Testimonials

Let Us Help You

Contact our Kansas City Construction Law Firm by calling 1-800-523-5786 or by completing this contact form.

Bold labels are required.

Contact Information

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.


Privacy Policy