Asset-Based Lending Solutions

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. For companies that have significant assets in different forms, an asset-based loan may help them maximize working capital to manage expenses. 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. Seacoast helps businesses determine which lending solution is best for their needs.

Businesses who need working capital to take advantage of growth opportunities, maintain business operations, refinancing existing credit lines, and support seasonal fluctuations. In order to use asset-based lending services, businesses must have assets that can serve as collateral. Seacoast serves a variety of industries, such as staffing, manufacturing, and wholesale and distribution.

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. Emphasis on accounts receivable assets makes it easier for businesses to leverage income to manage cash flow. This tool is important for businesses that need to handle seasonal fluctuations, sudden growth and other circumstances.

Small, midsize, or large companies with a reliable track record and having a pending increased working capital need. Traditional lending opportunities often focus on tangible assets, which can make it more difficult for certain types of businesses to qualify for traditional funding. An asset-based lending line of credit allows companies to tap a significant asset that many other lenders will not consider. Our referrers program increases the number of businesses that may benefit.

Asset-based lending is a structured revolving line of credit which allows the business to borrow on an ongoing basis. Unlike a term loan, this line of credit can change based on the company’s assets and capital needs at the time. Businesses can scale the line of credit over time, to accommodate future growth. The facility line is determined by the borrowing base of the collateralized assets.

The borrowing base establishes the total amount a company can borrow. Which is based on a percentage of the value of the businesses collateral. Seacoast sets the borrowing base on the type of collateral. Accounts receivable assets take first priority, with a borrowing base up to 90%, depending on the business and its qualifications.

Asset-based loans offer a viable option for companies with growing assets.  The company’s assets are used as collateral to borrow against, not sold. Many business assets are important for the viability of the company. Businesses must retain those assets in order to generate new revenue. 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.

Seacoast Business Funding has more than 30 years of experience helping businesses maintain cash flow using asset-based factoring and other solutions. Businesses need a reliable partner that can provide working capital when they need it and grow with them. Our asset-based lending solutions are unique to each business, with prompt turnaround that is much more efficient than most financing options. Our success stories reflect a high degree of trust that we have built with our clients over time. To learn more, contact us or apply now.