Asset-Based LendingThe ABL process establishes an "overall credit facility" or "line of credit" for the company and advances against accounts receivable (up to 85%) and up to 60% against inventory. Advances are also made against machinery and equipment up to 75%. The ABL lender keys on the companies assets, management expertise and business market position to evaluate the viability of the facility loan. This contrasts to the traditional bank orientation to loan against balance sheet ratios and earning histories. This bank philosophy restricts subsequent corporate borrowing due to FDIC restrictions dictated by government regulators.. Asset-based lending can be a direct benefit to a company needing to grow. Where as banks encourage borrowers not to outgrow their capital base which is shareholder's equity, asset-based lenders key their loans to expansion opportunities. Unlike the banks reliance on "leverage" (the relationship between debt and shareholder's equity), an ABL Facility Loan is a flexible financial instrument geared to a company's working capital needs. We stand ready to assist in the evaluation and placement of a tailored asset-based facility loan which would allow a company the freedom to grow and increase sales and profits. We can provide asset-based lending to encompass a wide range of secured loan types with terms and advance rates to meet a variety of industries beginning at one million dollars.
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