Finance Your Inventory and Accounts with
Asset-Based Lending

Asset-Based Lending is a type of business financing which typically features a revolving line of credit.  Unlike a traditional working capital term loan based on the strength of the financial statements of a company and its ability to repay the loan, asset-based loans are based on the liquidation value of business assets in the form of accounts receivable, inventory, and equipment.  The revolving line fluctuates, growing as business increases and decreasing if business declines.  While factoring only addresses the financing of accounts receivable, asset-based lines of credit are a method of financing accounts, inventory, and equipment.

Financing Requirements

While factors can typically finance the invoices of a business in even its earliest days of operation, your small business must have a reasonable amount of credit history to qualify for an asset-based revolving line of credit.  In fact, it is quite common for a small manufacturer or distributor to utilize factoring as its sole source of finance for a year or even two, while the business builds its credit history to ultimately qualify for an asset-based credit line..

Not Available as Contract or Mobilization Financing

Asset-Based Lending is not available as a method of financing contracts or providing "mobilization" funding for work to be performed.  While it will provide working capital for such operations once in place, the collateral for an asset-based line of credit must be accounts receivable, inventory, and equipment.  If real estate is present, it will typically be financed separately.

Find Out More

 Can Asset-Based Lending provide a working capital solution for your small business?  In many cases...YES!  You can find out more and explore all of the many benefits of factoring by requesting our FREE booklet..."When Banks Say NO!...The Small Business Guide to Factoring".  Click on the icon below to request your FREE copy.