Asset Based Lending
-
FlexibilityABL can provide more flexibility and faster approval than a traditional loan. ABL effortlessly transforms your business's accounts receivables and inventory into readily accessible cash, offering you immediate liquidity.
-
AffordableABL is often a more cost-effective option compared to alternative forms of financing. With its competitive rates and flexible terms, ABL offers an accessible and budget-friendly solution for your financial needs.
-
Qualify EasilyABL is typically a more accessible option compared to traditional loans. It's easier to qualify for since it primarily relies on the business's assets as collateral. This makes obtaining financing simpler and more straightforward.
-
Cash QuicklyABL can provide businesses with instant cash for expenses, payroll, or growth. It's a convenient solution that provides immediate access to funds, ensuring smooth operations and empowering business development.
What is Asset Based Lending?
Asset-based lending is a type of business financing that uses collateral to secure a loan or line of credit. Instead of focusing solely on creditworthiness, asset-based lending looks at the value of a company’s assets, such as inventory, accounts receivable, or equipment. ABL converts business accounts receivables, and inventory into immediate, available cash. This form of lending is commonly used by businesses to address short-term cash flow needs, support growth, and facilitate acquisitions. By leveraging their assets, businesses can access the capital they need to succeed and overcome financial challenges.
How ABL Works
In asset-based lending, the lender assesses the value of a company’s assets and provides a loan or line of credit based on a percentage of that value. This collateral-based approach offers flexibility in borrowing capacity, allowing businesses to access funds based on the value of their assets. Compared to traditional bank loans, asset-based lending offers faster approval times, scalability, and convenience. Businesses can make more frequent draws against their credit line, adapting to changing financial needs easily. Additionally, asset-based lending often has fewer or no covenants, granting businesses greater freedom and control over their operations.
Let’s simplify how Asset Based Lending (ABL) works with an example. A business with $1,000,000 in accounts receivable and $800,000 in inventory partners with Third Coast Commercial Capital (TCCC) for ABL. TCCC provides an advance of 80% on eligible accounts receivable ($800,000) and 50% on eligible inventory ($400,000). This gives the business quick access to $1,200,000 in cash. TCCC monitors receivables and inventory through a borrowing base, which determines funding availability. Any changes in balances impact funds.
Growth and Financial Success
With ABL, we assess the value of your business’s assets, including accounts receivable, inventory, and equipment, and lend a percentage of that value. While the interest rate on an ABL loan may be higher than a traditional bank loan, the terms are more flexible. Experience faster approval times, easy scalability, and the ability to make frequent draws with few or no covenants.
Our Asset-Based Lending credit facilities are secured by collateral, leveraging your company’s assets such as Accounts Receivable, Inventory, and Equipment. At Third Coast Commercial Capital, we pride ourselves in tailoring our products to meet the unique needs of each client. With ABL, you gain access to working capital, enjoy greater flexibility, and benefit from a faster and more responsive financing solution. Take advantage of Asset-Based Lending to unleash the true potential of your business. Contact us today to explore how ABL can fuel your growth and financial success.
Get Cash Quickly with Factoring
Factoring can be a quick and easy way for businesses to get access to cash.
Follow Us
