What is asset-based lending?
Asset-based lending (ABL) is a revolving line or term loan secured by business assets. Availability is set by a borrowing base, a percentage of eligible receivables, inventory and equipment, so the line can grow as the business grows.
What the program covers
Collateral
- Accounts receivable
- Inventory
- Machinery and equipment
- Commercial real estate
How it works
- A borrowing base sets availability
- Regular reporting on receivables and inventory
- Field exams and appraisals
- Availability adjusts with collateral
What to have ready
- Accounts receivable and payable agings
- Inventory reports
- Interim and annual financial statements
- Equipment list
From first review to closing
Tell us about it
A short intake or a call. Progress saves as you go.
CPA-led underwriting
We analyze the numbers, structure and documents before anything moves forward.
Term sheet or placement
On select investor programs, qualifying deals receive a term sheet from us. Other financing is structured and presented to sources in our network.
Approval and closing
Final approval, appraisal, title and insurance through funding. Steps vary by program.
Before you apply
How is ABL different from a bank line of credit?+
Bank lines lean on earnings and covenants. ABL lenders lean on collateral, which can mean more availability when earnings are uneven.
What reporting is required?+
Typically a monthly borrowing base certificate with receivables and inventory reports. Our accounting services can help you set that up.