ACG may concentrate some of it’s resources on secured lending. Money is becoming more expensive and harder to obtain from financial institutions. They are likely to face a tough operating environment in 2023, driven by stagnating or negative economic growth rates, high inflation, surging interest rates and heightened geopolitical tensions. As a result, ACG may be able to capitalize on the high interest rates backed by business’s and debtor’s collateral.
Secured lending has a higher rate of return and provides less risk than unsecured loans. Currently, the average secured loan from a qualified borrower is between 12 to 20%. Thus, providing working capital to companies based on collateral and cash flow is the way of the future.