WORKING CAPITAL THAT WORKS
With lower reporting requirements, Summit’s Asset-Based Loans use a borrowing base to manage the collateral. We offer up to 85% advance rates with this product, which is designed for clients with a lower risk profile. Asset-Based Lending gives you the freedom to increase your cash flow by borrowing against a pool of your assets – and because of your healthy financial status, we don’t monitor your every move.
What is Asset-Based Lending or an Asset-Based Loan?
Asset-based lending (ABL) is a business loan secured by collateral, also known as assets. The loan is secured by accounts receivable, inventory, and equipment. ABL finance is typically structured as a revolving line of credit, which allows a company to borrow against assets on a continuing basis to cover investments or expenses as required.
Qualifying for ABL Finance or Financing
Also known as ABL Financing or Finance, asset-rich companies can utilize asset lending to maximize borrowing capacity. ABL financing can be used for strategic growth for companies looking to expand into new markets. To qualify for asset based financing, it is generally required that the company is both stable and have assets that are able to be financed.
Apply for an Asset Based Loan Today!
Many banks and other banking institutions will require you to fill out hard paperwork to get the money you need. Summit Financial Resources team is adept at making the process as simple as possible so you can get the monetary solutions that will help grow your business. Apply online today >
Asset-Based Lending Guidelines
Up to 85% of A/R
|Invoice Factoring||Asset-Based Loans (ABL)||Inventory Financing||Equipment Term Loan||Small Business Loan||Stretch Financing|
|Description||Receivables Purchase||Borrowing Base Certificate||Add-on only||Add-on only||Revolving Loan, |
|Structured Stretch Piece for |
Growth; Add-on only
|Facility Limits||$100M - $4MM||$1M - $4MM||Up To $1MM||Up To $1MM||$200M||<$250M|
|Risk Profile||Higher, with Underwritten |
Collateral & Controls
|Lower, Strong Reporting |
|Higher with Underwritten Exit||Higher, Short-term with |
|Higher, less restrictive with |
standardized pricing and controls
|Higher, Short-term with |
|Pricing Components||Collateral Mgmt/Admin |
Fee + Interest
|Interest + Various Fees||Interest + Admin Fee||Interest + Admin Fee||Admin Fee + Interest / |
Collateral Management Fee
|Flat, Monthly Discount Fee|
|Advance Rates||Up to 90% of A/R||Up to 85% of A/R||Up to 50% of Inventory Cost||Up to 60% of NOLV or 40% |
of Book Value
|Up To 100% of A/R||n/a|
How Asset-Based Lending Compares
Take a look at our offerings, and see how we can help. We offer Asset-Based Loans from the low 6 figures to 7 figures, plus. From higher reporting to lower risk, and ABL borrowing base to invoice factoring purchase, somewhere on that chart is a loan for your company.