Asset Based Lending
Asset Based Lending
$500,000 to $10,000,000
How ABL Helps Your Business
Asset based lines of credit are revolving working capital financing programs for businesses that carry accounts receivable and inventory. Underwritten primarily on collateral rather than on cash flow, they work well for middle market companies ($5+ million/annual sales) that are undercapitalized for the growth curve they are on.
Typical advance rate on A/R:
75-90%
Typical advance rate on inventory:
50-60%
Facilities available from:
$500,000 to $10,000,000
We can get you competitive proposals from the industry’s top players.
Resources and Articles
Asset Based Lending.
It’s almost inevitable that at some point your business will need some financing that exceeds what your existing bank lines of credit can accommodate. In most cases, this need would correspond with one of the periodic bursts of growth that most businesses experience.
If your business is new or hasn’t shown steady profitability, it’s going to be very difficult to secure a small business loan since banks are notoriously conservative. I even had one banker tell me that if a business is growing more than 10-15% per year, that’s considered too aggressive for traditional bank financing.
