Asset-Based Lending

Asset-based Lending provides working capital as a structured revolving line of credit based on a percentage of the value of the company’s assets, such as commercial accounts receivables, inventory, machinery and equipment. Commercial accounts receivable should comprise the largest portion of combined assets.  The borrowing base for Asset-Based facilities can be up to 90% on commercial accounts receivables and up to 50% on inventory and machinery. 

Businesses who need working capital to take advantage of growth opportunities, maintain business operations, refinancing existing credit lines, and support seasonal fluctuations. 

Commercial accounts receivable should comprise the largest portion of the collateral; while inventory and machinery & equipment can be used as a smaller percentage of the combined assets.

Small, midsize, or large companies with a reliable track record and having a pending increased working capital need.

The borrowing base establishes the total amount a company can borrow . Which is based on a percentage of the value of the businesses collateral. 

Asset-Based loans offers a viable option for companies with growing assets.  The company’s assets are used as collateral to borrow against, not sold. It offers  flexibility since it is a revolving line of credit and availability can increase or decrease daily and weekly based on your sales, credits, and collections.