Federal Deposit Insurance Corporation - FDIC-Insured - Backed by the full faith and credit of the U.S. Government

Our Asset-Based Line of Credit (ABL) provides a flexible financing solution by letting you leverage your inventory and equipment alongside your accounts receivable. This approach helps maximize your borrowing potential across multiple asset types. However, to qualify, clients must be rated as low risk and meet certain due diligence requirements, which may include field exams and asset appraisals.

How does Asset-Based Lending work?

A man with a clipboard shopping

Our Offerings

Facility Size:
$500,000 to $5,000,000

Advance Rate:

  • 80% to 95% of Eligible Accounts Receivable
  • Up to 70% of Net Orderly Liquidation Value (“NOLV”) of Eligible Inventory
  • Up to 70% of Forced Liquidation Value (“FLV”) of Eligible Equipment

Pricing: As Low as 1% Per Month

Flexibility: You Draw on Availability as Needed

Eligible Invoices:

  • Net Terms of 120 days or less
  • Invoices with Creditworthy, US Companies for Completed Services / Delivered Goods

Eligible Inventory:
Marketable Raw Materials and Finished Goods Inventory with Medium to Long Shelf Life Located in the US

Eligible Equipment:
Stable Valued, Marketable Equipment Located in the US

FAQs

What is Asset-Based Lending (ABL)?

Think of ABL as a flexible line of credit that’s backed by the assets your business already owns. Things like receivables, equipment, inventory, or other business assets. The stronger your assets, the more borrowing power you have.

How does ABL work?

We review your eligible assets to establish what’s called a borrowing base. As those assets go up or down – like when receivables come in – your available credit adjusts with them. You just draw what you need, when you need it. It works a lot like a revolving line of credit but with more flexibility.

What types of businesses use ABL?

A wide mix. Companies growing quickly, navigating, seasonal swings, or needing more room than a traditional bank loan allows often turn to ABL. We commonly see Manufacturing, Distribution, Oilfield Services,Staffing, and similar industries use it to keep things moving smoothly.

How is ABL different from invoice factoring?

Great question. Both give you working capital, but ABL is structured as a revolving line of credit secured by one or more asset types—not a sale of invoices.

  • You keep ownership of your receivables
  • You retain customer contact
  • Reporting and compliance are more detailed
  • Costs are generally lower for established companies with stronger financials
How much can my company borrow?

Your borrowing availability is based on advance rates applied to eligible assets. For example:

  • 80–95% of eligible accounts receivable
  • Up to 70% of Eligible Inventory
  • Up to 70% of Eligible Equipment

Exact amounts vary based on your financials, asset quality, customer strength, and industry.

What are the benefits of ABL?
  • Predictable operating capital
  • Flexible funding that grows with your business
  • Lower cost than equity or many alternative lending options
What is a borrowing base certificate (BBC)?

A BBC is simply a report you submit, typically weekly, that shows updated receivables, inventory, and other collateral values, which determines the availability on your facility.

What reporting is required for an ABL facility?

Reporting varies by business, but typically includes:

  • AR aging
  • AP aging
  • Inventory reports
  • Financial statements
  • Bank statements
  • Tax filings
How fast can an ABL facility be set up?

Most ABL facilities come together in about 2 weeks, depending on how complex the collateral is, and whether a field exam is required.

What is a field exam?

Before closing (and occasionally after), we’ll do a field exam to review your collateral, processes, and financial controls. It helps ensure everything is accurate and protects both you and us.

When should a company consider ABL over a traditional loan?

ABL is especially helpfull when you:

  • Needs more availability than your bank can offer
  • Has strong assets but inconsistent cash flow
  • Is scaling fast and needs flexible funding
  • Wants fewer restrictive covenants
  • Are navigating a transition, acquisition, or restructuring
Can ABL and factoring work together?

Absolutely. Many businesses start with factoring when they’re early in growth, then  transition into ABL as their reporting, stability, and capital needs expand. It’s a natural progression and we support both.

How can Asset-Based Lending help your business?

Submit the form below or call us at 877-635-2401.

 

 


    No matter what stage your business is in,
    we have a tailored solution.

    GET IN TOUCH