Asset Based Lending

Unlock the Full Value of Your Business Assets

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What to Expect

Asset Based Lending at a Glance

Loan Amounts

$250,000 - $20,000,000+

Terms

12-36 months

Rate

Competitive based on collateral mix

Payment Options

Revolving credit with flexible draws

Asset Based Lending 101

What is Asset Based Lending?

Asset-based lending (ABL) is a sophisticated financing solution that allows businesses to leverage their existing assets to secure flexible working capital. By using accounts receivable, inventory, equipment, and real estate as collateral, companies can access higher advance rates and more flexible terms than traditional bank financing offers.

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Unlike conventional loans that focus primarily on cash flow, ABL facilities are structured around your asset values, providing greater borrowing capacity and flexibility. This makes them particularly valuable for companies with significant assets and seasonal or growth-driven capital needs.

How Does Asset Based Lending Work?

An ABL facility establishes a borrowing base calculated from the value of your eligible assets, with different advance rates for each asset type. You can draw funds as needed up to your available borrowing base, paying interest only on what you use. As your asset base grows, your available credit can increase automatically.

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The revolving structure allows you to borrow, repay, and reborrow based on your business cycles, providing maximum flexibility while maintaining strong collateral coverage for the lender.

Benefits of Getting Asset Based Lending Through Joseph Capital Network

Higher Advance Rates

Get more value from your assets with industry-leading advance rates: - Up to 90% on eligible accounts receivable - Up to 75% on qualified inventory - Up to 85% on equipment - Up to 75% on commercial real estate

Multiple Asset Types

Leverage various asset classes in a single facility, maximizing your borrowing capacity. We consider accounts receivable, inventory, equipment, real estate, and even intellectual property in appropriate circumstances.

Scalable Growth Financing

Your credit line can grow automatically as your asset base expands, supporting organic growth without requiring new loan approvals. This scalability makes ABL ideal for growing companies.

Flexible Structure

Customize your facility with revolving credit options, seasonal advance rates, and multiple collateral types. Our structures adapt to your business model rather than forcing you into a standard format.

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Minimum Requirements to Qualify

Our asset based lending programs are designed for established businesses with strong asset positions. While we evaluate each situation individually, these are our main criteria:

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- Minimum line size of $250,000

- Quality, verifiable assets

- Established business operations

- Professional financial reporting

- Strong collateral management

- Regular financial reporting capability

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Understanding Asset Based Lending Requirements

SBA loans are a great option for small businesses. They are backed by the federal government through the Small Business Administration which makes them more affordable than other business financing options. However, they are much more difficult to acquire with strict requirements and an abundance of paperwork. Here are the initial factors you must consider before applying for an SBA loan.

Asset Requirements

We evaluate asset quality, liquidity, and value sustainability. Assets should be properly maintained, well-documented, and free from significant prior liens. Regular reporting and monitoring systems must be in place.

Business Requirements

Your company should demonstrate strong operational management and reliable financial reporting capabilities. While credit and cash flow are considered, asset quality and management are our primary focus.

Monitoring Requirements

Monthly borrowing base certificates and financial reporting are standard, with periodic field audits to verify asset values and condition. Professional collateral monitoring systems should be maintained.

If you meet these minimum requirements, you will then need to meet a plethora of additional financing and industry-based requirements that will be based on the size of the loan along with the intended use of the loan.