Asset-Based Lending for small business.

Asset-based lending is a revolving credit facility secured by your balance sheet, primarily accounts receivable and inventory. Your borrowing limit moves with the collateral, so the line grows as the business does.

Funding range
$250K–$20M
Typical term
1–3 year facility, renewable
Timing
Typically 2–4 weeks from a complete file
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How it works

How asset-based lending works

You apply with an accounts receivable aging report, inventory detail, and recent financial statements. A field exam verifies the collateral, and underwriting sets advance rates against eligible receivables and inventory. Your available credit is governed by a borrowing base you report on a set schedule. As you invoice and build inventory the line expands, and as receivables are collected availability replenishes.

Structure

How asset-based lending is structured

What you receiveA revolving line governed by a borrowing base
Advance on receivablesTypically 80%–85% of eligible A/R
Advance on inventoryTypically up to 50% of eligible inventory
RepaymentRevolving; collections pay down the line and restore availability
Typical term1–3 year facility, renewable
CollateralBlanket UCC lien on A/R and inventory; personal guarantee typical
ReportingPeriodic borrowing base certificate and collateral reporting

The written offer and financing contract contain the economic terms that apply to this structure — including the total repayment where the structure establishes one — before you commit.

What you'll need

Typical profile

  • At least 2 years in business
  • Significant B2B accounts receivable, inventory, or both
  • Most recent accounts receivable aging report
  • Inventory detail and recent financial statements
  • Creditworthy commercial customers

Requirements vary by product, provider, and overall business profile.

Pricing & terms

What shapes your terms

No single number decides an offer. Underwriting weighs how these factors combine on your file:

  • Revenue level and deposit consistency
  • Time in business and industry
  • Existing obligations and payment history
  • Collateral or guarantees, where the structure uses them
  • Documentation completeness and overall file quality
  • The structure itself — pricing mechanics differ by product
Who this is right for

Who asset-based lending fits

Asset-based lending fits established manufacturers, wholesalers, distributors, and staffing firms with substantial receivables or inventory and cash tied up in the operating cycle. Because availability scales with the balance sheet, it suits operators in growth, turnaround, or acquisition, and it is often the structure private equity sponsors and family offices expect for their portfolio companies.

Frequently asked questions

See your asset-based lending options

4 minutes. No credit pull at this stage.

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