Asset-Based Lending
Flexible Capital Backed by Your Business Assets
Asset-based lending (ABL) is revolving or term credit secured mainly by accounts receivable, inventory, equipment, or real estate. Advance rates and the borrowing base drive how much you can draw. i95 Capital structures and places ABL with banks and private lenders for companies that need flexible working capital or growth financing.
Flexible Terms to Maximize Your Opportunity
Amount
Up to $75M
Agreement Term
1-3 years (typical) or flexible terms based on your needs
Advance Rate
50% to 75% depending on asset type and quality
Who Uses Asset-Based Lending
ABL fits companies that have meaningful accounts receivable, inventory, equipment, or real estate and need flexible capital tied to those assets. It is commonly used by manufacturers, distributors, wholesalers, logistics operators, and other asset-heavy businesses.
Typical situations include seasonal inventory builds, growth that outpaces cash collection, acquisition financing supported by collateral, or a larger revolving facility than a simple bank line allows.
i95 Capital works with banks and private lenders to structure and secure facilities across a wide size range, including larger ABL programs when the asset base supports them. We offer Asset-Based Lending in all 50 US states and the District of Columbia.
Asset-Based Lending Compared with Other Options
ABL and a traditional bank line
A conventional bank line leans heavily on financial covenants and overall credit profile. ABL leans more on the value and quality of collateral and a borrowing base. That can mean more flexibility when cash flow is seasonal or lumpy, as long as receivables and inventory remain solid.
ABL and invoice factoring
Factoring converts selected invoices into cash, usually by selling them. ABL is typically a revolving facility secured by AR (and often inventory or other assets) without selling the invoices. ABL does not require the transfer of assets. Instead, the company’s assets are monitored as collateral against the financing. You keep the customer relationship and draw against a borrowing base. Invoice factoring can still be the better fit when speed on specific invoices matters more than a full facility.
ABL and a term loan
A term loan funds a fixed amount and amortizes over time. ABL can revolve: availability rises and falls with eligible assets. Many companies use ABL for ongoing working capital and a term piece for equipment or a one-time need.
Assets Leveraged and Use of Proceeds
What Assets Can You Leverage?
- Accounts Receivable
- Inventory
- Equipment
- Real Estate
Common Uses for Asset-Based Lending
- Rapid inventory expansion for seasonal demand
- Financing growth without diluting equity
- Bridging cash flow while scaling operations
- Leveraging A/R and inventory to fund acquisitions
- Accessing capital when loans are not available
How Lenders Evaluate Asset-Based Lending Requests
Lenders focus first on collateral quality and liquidity, not only on broad credit metrics. Eligible accounts receivable, inventory, equipment, or real estate are assigned advance rates based on how reliably each can convert to cash. Stronger AR (creditworthy customers, shorter collection cycles) usually supports higher advances than aged receivables or harder-to-sell inventory.
Availability is set through a borrowing base: advance rates applied to eligible assets, updated as receivables are collected, inventory turns, and reporting comes in. That is why ABL facilities typically require regular AR aging, inventory reports, and related certificates.
Financial performance still matters, but as support. Lenders want a viable operating business generating those assets. Clean current reports and financials speed underwriting and improve the quality of offers.
Frequently Asked Questions
What Advance Rates Are Typical? Advance rates depend on asset type and quality. Accounts receivable from creditworthy customers often support higher advances than aged receivables. Inventory and equipment are typically advanced at lower rates based on liquidity and appraisals. Your facility’s rates are set in underwriting, not by a single published number.
What Is a Borrowing Base? The borrowing base is the amount you may draw at a given time. It is calculated by applying advance rates to eligible assets. As you collect receivables, sell inventory, or add collateral, availability adjusts. Lenders usually require regular reporting so the borrowing base stays current.
What Reporting Do Lenders Require? Common requirements include receivables aging, inventory reports, borrowing-base certificates, and periodic financial statements. Frequency depends on the lender and facility size. Clean, timely reporting supports smoother advances.
What Size Facilities Does i95 Capital Handle? We work across a wide range of ABL sizes, including larger facilities when the asset base supports them, with banks and private lenders. Fit depends on collateral, structure, and lender appetite, not a single fixed minimum or maximum on this page.
What to Have Ready
Lenders move faster when the file is complete. For an ABL discussion, it helps to have:
- Recent accounts receivable aging (30 / 60 / 90 / 91+ days)
- Inventory summary (if inventory will support the facility)
- Equipment list or appraisals (if equipment is part of the collateral)
- Current debt schedule
- Interim financials and recent business tax returns or fiscal statements
- Business bank statements (often the last 3 months)
- Clear use of proceeds
Personal financial statements and guarantor information are often requested for owners. Exact items vary by lender and structure.
If you want a simple one-page list to gather documents, contact us and we will send it.
How to Get Started with Asset-Based Lending?
Apply on Your Own
- Start the application process by completing the asset-based lending online application and submitting reports of your asset to be collateralized.
- The application is easy and without commitment.
Or, we can assist
- Complete our contact form and select Application Assistance in the Inquiry Type, and a representative will call you promptly. i95 Capital assists you every step of the way.
Either way, after receiving your completed financing application, our advisors will promptly review the information and the documents you included and submit the file for processing.
Typical files: Manufacturers · Distributors and Wholesalers · Food and Beverage