Credit that grows with your assets.
An asset-based loan lends against what a company owns, chiefly its receivables, inventory and equipment, rather than only against its earnings. Availability moves with the collateral, which makes it a working-capital tool for growing, seasonal, turning-around or acquiring companies. Facilities we work on start at $5 million and are typically $10 million to $250 million.
How it works in a paragraph
The lender sets a borrowing base: eligible receivables and inventory, multiplied by an advance rate, less reserves. You borrow up to the lesser of the facility size and the borrowing base. Collateral is reported regularly, typically with periodic field examinations and appraisals, and cash collections are often directed to the lender. Pricing, advance rates and covenants vary by lender and deal. Nothing on this page is an offered term.
The other side of the market
Borrowers see lenders by type: banks' ABL desks, credit funds, specialty finance companies. Lenders see borrowers that were screened against their written criteria before introduction. Each side has its own page.