Asset Based Business Lending
A Flexible Solution For Businesses To Utilize
Their Assets As Collateral To Fund Working Capital
Having working capital on-hand to cover business expenses easily and quickly.
As your business grows your line of credit evolves to meet your financial needs.
Draw on as little or as much as your business needs from your available line of credit.
$1,000,000 and up
Asset-Based Lending Solutions For Your Business
Seacoast Business Funding’s asset-based lending solutions help middle-market businesses unlock the value of their existing assets—such as accounts receivable, inventory, and equipment—to quickly access flexible, scalable working capital. By securing financing with what you already own, you gain control without being forced into rigid credit lines or long waits for traditional loans.
Asset‑based lending (also known as asset‑based financing) is a proven strategy for businesses that need liquidity tied to asset performance rather than credit score. With typical advance rates of 80–90% against receivables and 50–65% against inventory, companies can access significant capital to bridge cash flow gaps or fund growth.
What Is Asset‑Based Lending?
Here’s how it works:
- Assets Assessed and Appraised
Lenders evaluate the current value of eligible assets—typically receivables less than 90 days old, marketable inventory, equipment, and property—during a field exam or appraisal. - Borrowing Base Calculated
Using a “borrowing base” formula, lenders apply advance rates—usually between 70–85% for receivables and 50–60% for inventory—to determine your maximum credit line. - Ongoing Flexibility
ABL often operates through revolving credit facilities that adjust as your collateral is used or replenished, offering liquidity that scales with your business.
Why ABL Can Be Ideal for Your Business
-
Speedy access to capital:
Funds are available quickly, since lenders rely on asset value—not time-consuming credit and profit reviews. -
Lower financng cost:
Because the loan is secured by tangible assets, interest rates and requirements tend to be more favorable than unsecured borrowing. -
Greater Flexibility:
Because the loan is secured by tangible assets, interest rates and requirements tend to be more favorable than unsecured borrowing.
In short, asset‑based lending lets you harness the value of your business’s assets to secure predictable, scalable capital—providing both stability and control, especially during periods of growth or uncertainty.
Why Seacoast’s ABL Solutions Stand Out
Not all asset-based lending partners are built the same. At Seacoast Business Funding, we deliver more than just capital—we deliver confidence, clarity, and long-term support that scales with your business.
Specialized for the Middle Market
We work with companies generating $3M to $300M in revenue across industries like distribution, manufacturing, staffing, and food and beverage. Our ABL programs are designed specifically for businesses with commercial receivables and physical inventory to leverage.
Fast, Transparent, Relationship-Driven
You won’t get bounced between departments or buried in red tape. Our dedicated lending specialists work closely with your team to structure a custom borrowing base that matches your operational needs—and grows as you do.
Broad Collateral Options
We’re not limited to just receivables. Seacoast evaluates inventory and equipment to provide the highest possible advance rates and the flexibility to unlock as much capital as your assets allow.
Flexible, Covenant-Light Structures
We offer revolving lines of credit with minimal financial covenants and no rigid repayment timelines. That means you maintain operational control and adapt financing to the rhythm of your business.
How Our Asset‑Based Lending Process Works
At Seacoast Business Funding, we simplify the asset-based lending process so you can access capital quickly and strategically:
- Asset Identification & Appraisal
We begin by evaluating your eligible assets—accounts receivable (typically invoices under 90 days), inventory, and equipment. Expert appraisal establishes the current market value of each item. - Borrowing Base Setup
Using industry-standard advance rates—typically 80–90% on receivables and 50–65% on inventory —we calculate your borrowing base and determine the credit line available to you. - Facility Structure & Approval
We structure a revolving line of credit based on your borrowing base. This includes agreeing on rates and minimal covenants. You draw funds as needed, up to your limit. - Collateral Monitoring
As your business operates, our team conducts regular appraisals and audits to monitor asset values and adjust your borrowing base accordingly. This ensures transparency and keeps funding aligned with your needs. - Draws & Repayment
You access cash by drawing against the established credit line. You repay principal and interest per the agreement, typically replenishing capacity as invoices are collected or inventory turns over. - Flexible Renewal or Exit
When your needs shift—whether you’re slowing down or scaling up—we review your facility and adjust or exit based on your next growth stage.
This process ensures you maintain control of your operations, only leverage what’s valuable, and avoid rigid loan structures or idle debt.
Industries & Collateral We Serve
Seacoast’s asset-based lending suits businesses that generate revenue through tangible assets, perfect for industries where working capital needs ebb and flow with operations.
Industries We Support
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Distribution & Wholesale:
Ideal for companies holding significant inventory and client invoices. -
Manufacturing
Supports businesses with receivables and inventory tied to production cycles. -
Staffing & Business Services:
Great for organizations with major short-term assets like AR and equipment. -
Food & Beverage:
Helps navigate inventory seasonality and billing delays, ensuring uninterrupted operations.
Collateral We Accept
We assess and leverage the following assets to structure your borrowing base:
Accounts Receivable: Typically, receivables within 60–90 days are eligible. Advance rates can range from 80–90% depending on credit quality.
Inventory: Liquid inventory is valued at 50–65%, flexible to meet seasonal spikes.
Equipment & Machinery: Heavy assets valued at up to 60%, depending on condition and marketability.
This asset variety lets us tailor ABL solutions that reflect your company’s strengths, helping control cash flow, seize opportunities, and weather volatility.
Ready to Access Flexible Capital?
If your business is ready to tap into a line of credit that grows with your assets—not your liabilities—Seacoast Business Funding is here to help.
Whether you’re facing seasonal slowdowns, preparing for expansion, or need liquidity to fund operations like payroll and inventory, our asset-based lending solutions offer:
- A revolving credit facility secured by real assets—no reliance on future cash flow or high credit scores
- Competitive rates and fewer covenants, thanks to secured collateral
- The ability to draw funds as needed, with credit lines that expand or contract based on your borrowing base
