Asset Based Lending

Asset-based lending is an appealing financing option for asset-rich companies looking to maximize their borrowing capacity. Often, your accounts receivable comprise a significant portion of the total assets included in your borrowing base.

Common uses of Asset-Based Lending include:

  • Working capital
  • Business expansion
  • Funding a merger or acquisition
  • Recapitalizations
  • Restructurings
  • Seasonal financing needs
  • Turnarounds

A credit insurance policy can substantially increase your borrowing capacity under an Asset-Based Lending facility, especially if export receivables are part of the borrowing base.

Asset-based lenders will typically request active monitoring of your accounts receivable (regular aging statements), and also may require regularly scheduled audits of your assets used as collateral for the loan. With most asset-based lending facilities, you own and maintain control over your receivables.

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