Asset-Based Lending

Asset-based lending can be an effective financing solution for businesses whose capital needs may not fit within the conventional lending requirements of traditional banks.
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What Is Asset-Based Lending?

Asset-based lending, commonly known as ABL, is a financing solution designed for businesses that need more flexible capital than what traditional banks may be able to provide. ABL can be a suitable option for companies seeking higher leverage, more customized loan structures, flexible covenants, or financing terms that better align with their business needs.

We work with private, non-bank asset-based lenders that may provide revolving lines of credit or term loans ranging from approximately USD 4 million to USD 150 million to non-investment-grade borrowers. These financing options may be available to qualified companies in the United States, Canada, Mexico, and select international markets that are not subject to sanctions imposed by the United States, the United Kingdom, or Canada.

ABL financing is typically supported by a company’s business assets, such as accounts receivable, inventory, machinery, and equipment. This structure allows companies to leverage their existing assets to access capital for business growth, recapitalization, shareholder buyouts, payroll, working capital, or other approved business purposes.

We can facilitate asset-based lending opportunities for both privately held and publicly owned companies across a broad range of industries, subject to lender eligibility requirements, collateral review, underwriting, documentation, and final approval.
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We Are Here to Assist You

We understand that every business is different, with its own working capital needs, operating challenges, and growth objectives. Our role is to help you evaluate potential financing options and determine whether asset-based lending may be a suitable solution for your specific financial situation.

The ABL lenders we work with have experienced teams that understand complex financing needs and can move efficiently when a transaction requires a thoughtful, customized structure. Depending on the borrower, collateral, and overall transaction profile, they may be able to work within tight timelines to provide financing solutions designed around the company’s business assets and funding objectives.

Positive Cash Flow May Not Be Required
Unlike traditional bank financing, certain asset-based lending solutions may be available even when a borrower does not currently have positive cash flow. In these situations, the lender’s focus is often placed on the quality, value, and availability of the borrower’s eligible collateral, such as accounts receivable, inventory, machinery, equipment, or other business assets.

Loan proceeds may be used for several approved business purposes, including:

• Working Capital
• Acquisitions
• Bridge Financing
• Refinancing
• Growth Capital
• Restructuring
• DIP Financing
• Exit Financing
• Turnarounds

All financing requests remain subject to lender review, collateral evaluation, underwriting, documentation, eligibility requirements, terms and conditions, and final approval.