What is Asset-Based Lending?

Your ability to maximize borrowing capacity for working capital purposes.

Asset-based lending is a commercial financing product that allows a lesser capitalized business the ability to maximize its borrowing capacity for working capital purposes. By establishing a funding formula against accounts receivable and inventory, this collateral focused process will tolerate a higher level of financial leverage.

Asset-based lending is typically comprised of a revolving line of credit secured by accounts receivable, inventory and machinery & equipment. The loans are closely monitored through borrowing base reports and dominion of cash collateral, which allows the evergreen revolving loans to move in tandem with the sales and collections cycle of the business. On-site field examinations are conducted in advance of the initial funding and periodically during the relationship.

Asset-based loans can be utilized in a variety of industries unless there is some conditionality with respect to the finality of a sale or collectability of an invoice (i.e. progress billings, guaranteed sales, advance billings, etc.). Proceeds from this type of debt can be used to support working capital needs resulting from sales growth and/or seasonality, erratic cash flow, acquisition/divestiture, operational turnarounds, and financial restructures.

 

Loan Criteria

Secured, revolving lines of credit between $1,000,000 and $7,500,000. This credit need usually correlates to a business having revenue between $5-$75 million. Read more

ABL offers working capital lines of credit secured by accounts receivable, inventory and machinery & equipment. It provides state of the art collateral monitoring and loan administration services, and is only focused on the small to medium size business market primarily within the states of Ohio, Kentucky, Indiana, West Virginia, Tennessee, Pennsylvania, Illinois, Michigan and Wisconsin. ABL is poised and driven to be the lender of preference in this market.
Phone: (513) 429-5511  Fax: (513) 429-5510