The current economic climate is forcing many small businesses to leverage hidden assets because more traditional lending sources are drying up. According to a recent survey performed by the Commercial Financial Association there were$66.1 billionin asset-based loans outstanding at the end of 2010, up from$63.5 billionin 2009. This trend has become much more prevalent over the past three years do to the credit crunch that traditional lending institutions face.

"The majority of small businesses don't even know there are alternative ways to secure financing with their existing assets," saidKris Roglieri, president of Prime Commercial Lending. "Traditionally, small businesses go to their local bank and receive a line of credit for expansion, investment, or hiring new employees. Because of the recent banking crisis, one of the first product lines traditional banks close off is revolving credit line to businesses."

Prime Commercial Lending is a nationally recognized leader in commercial finance, offering more than 35 commercial lending options. Roglieri founded Prime Commercial Lending in 1994 with the vision of building a company that would be diverse enough to withstand any economic climate and at the same time providing businesses an array of capital solutions.

One of the leading lending sources being utilized is factoring. "Asset based lending can be a little more expensive but it is simply allowing small businesses to survive and thrive in this down economy," said Roglieri. "One of the many benefits to this type of financing is that lenders look at a business's assets such as their accounts receivables or inventory over the actual financials of the business."

While factoring can be one of the more expensive forms or financing, it allows small and mid-sized companies the opportunity to survive through difficult times.

"It is becoming a lifeline for many small businesses, which would otherwise have to close their doors," added Roglieri.