Loans up to $50M for Asset Based Lending
Unlock the value in your business assets to power your operational needs and drive growth.
Fill in our straightforward online form, providing details about your business assets.
Upon approval, you’ll receive a loan amount based on the value of your collateralized assets.
With your new working capital, you can invest, meet expenses, or take on new challenges.
Regularly update your asset valuations to potentially unlock more funding.
Once you’ve achieved your goals, we finalize the terms and you can choose to continue or settle your loan.
Our service offers quick convertibility, allowing you to turn your inventory, accounts receivable, or other balance-sheet assets into cash rapidly. With tailored lending, you receive a loan package customized to your specific assets, whether it’s inventory or invoices. As your asset base grows, your access to additional capital increases, facilitating easier cash management. This helps you navigate seasonal fluctuations and unexpected expenses effortlessly.
Let’s connect over a virtual coffee.
Asset-based lending or sometimes called an ABL loan is a creative form of debt financing. It allows you to secure a loan based on the value of your business assets. With our asset-based lending program, you can borrow up to 90% of accounts receivable, 75% on the appraised value of M&E, 50% on FMV real estate and 75% on net orderly liquidation of inventory. You are borrowing in the form of a revolving line of credit, which is ideal, because you can use those funds whenever you need money. Since your physical assets are your collateral, there is maximum liquidity and fewer rules. Overall, this is an extremely flexible solution that bridges the buy-and-sell in your business so that you can accelerate your sales cycle.
ABL Is Formula-based. The formula is derived off of what is called a Borrowing base which is a snapshot of your assets and availability at a point of time. As our clients manufacture or acquire new inventory, and as they sell/ generate receivables from sales of that inventory, these new assets become available for inclusion in the borrowing formula.
Asset-Based Lending Is Formula-based. The formula is derived off of what is called a Borrowing base which is a snapshot of your assets and availability at a point of time. As our clients manufacture or acquire new inventory, and as they sell/ generate receivables from sales of that inventory, these new assets become available for inclusion in the borrowing formula.
Asset-based loans can be a much-needed source of capital for companies that are rapidly growing, in need of additional funds during seasonal periods, or undercapitalized. Raising money for your business can be a cumbersome, time-consuming process—and you might not have time to waste! And, investors or lenders may require equity or royalties when providing funds to support your business. Simply put, with an asset-based lending loan, your business remains your business.
With asset-based lending, you can power your business with flexible funding secured by using existing business assets such as inventory, machinery and equipment, and/ or real estate. These loans often have lower interest rates, which means you are more likely to save money over time.
Asset-Based Lending (ABL) and Traditional Lending are two distinct forms of financing that differ in their underlying principles and structures. Here are the key differences between the two:
Asset-Based Lending (ABL):
Collateral: ABL is secured by specific assets owned by the borrower, such as accounts receivable, inventory, equipment, or real estate. The lender evaluates and monitors the value and quality of these assets, which serve as collateral for the loan.
Focus on Asset Value: ABL places significant emphasis on the value and liquidity of the borrower’s assets. The credit limit or loan amount is determined based on a percentage of the appraised value of the eligible assets.
Borrowing Availability: ABL provides a revolving line of credit, allowing the borrower to borrow and repay funds within the established credit limit as needed. It offers flexibility in accessing working capital based on the value of the eligible assets.
Traditional Lending:
Creditworthiness: Traditional lending primarily evaluates the borrower’s creditworthiness, financial history, and ability to repay the loan. It relies on factors such as the borrower’s credit score, income, business history, and financial statements.
Fixed Loan Amount: Traditional loans provide a fixed loan amount disbursed upfront. The loan is typically repaid over a predetermined period with fixed monthly installments.
Collateral and Personal Guarantee: Traditional loans may require collateral, such as real estate or equipment, depending on the loan amount and terms. Additionally, personal guarantees from business owners or directors may be necessary to secure the loan.
Overall, the key distinction between ABL and Traditional Lending lies in their approach to collateral and the primary factors considered for loan approval. ABL focuses on the value and liquidity of specific assets, while Traditional Lending emphasizes the borrower’s creditworthiness and financial history. ABL offers more flexibility in borrowing against assets, whereas Traditional Lending provides a fixed loan amount based on creditworthiness and repayment ability.
We specialize in unique asset-based lines of credit and provide working capital by leveraging accounts receivable, inventory assets, and even intellectual property, to companies that generate between 2M to 100M of revenue per year.
Asset-based Lending typically offers advance rates on collateral of up to:
Do you have any questions? Write and our specialists will answer you.
