Asset-Based Lending
Asset-Based Lending
(ABL) is a type of financing that allows businesses to borrow money based on the value of their assets, such as inventory, accounts receivable, equipment, or real estate.
ABL differs from traditional lending, which relies more on the creditworthiness and cash flow of the borrower. ABL provides more flexibility, liquidity, and security for businesses that need working capital, growth, or debt restructuring.
Unfortunately, many small businesses lack adequate assets to consider ABL. However, we have developed strategic partnerships to provide assets that can be added to the participant's balance sheet.
Key Points of ABL:
Key Points of ABL:
Faster, Easier Funding:
- Requires less documentation.
Unrestricted Use of Funds:
- Funds can be transferred to another business, used to buy a business, or spent however you want.
- Unlike traditional business loans and SBA loans where you must specify fund usage, ABL does not require you to declare the use of funds.
ABL vs Traditional Lending
ABL vs Traditional Lending
Large companies like Apple and Tesla use ABL, demonstrating its legitimacy.
There’s no cap on funding as long as there are assets to pledge.
~ Less Documentation Required
~ Faster Approvals and Funding
~ Unrestricted Use of Funds
~ No D&B (Dun & Bradstreet) Profile Needed
~ Higher Borrowing Limits (No Cap)
~ Minimum deal size is $1,000,000
~ Can combine with SBA loans or lines of credit
Faster Approval: The focus on collateral can sometimes lead to a quicker approval process compared to traditional loans.
Benefits of ABL
Benefits of ABL
Increased Accessibility:
- Easier to qualify based on assets rather than credit or business history.
Faster Approvals & Funding:
- Less underwriting due to asset-backed security.
Greater Flexibility:
- No restrictions on how the funds are used.
Higher Borrowing Limits:
- No cap, provided there are enough assets.
Proven Model:
- Used by large companies but now accessible to smaller businesses through our implementation model.
Our Unique Approach
Our Unique Approach
We provide a $1 million AR portfolio to participants, adding assets to their balance sheet.
Purchase Price:
- 1 cent on the dollar ($10,000 for $1 million AR).
- Can be financed through third-party funding or our Quick Cash program.
- Clients can acquire multiple portfolios if they need more than $1 million.
Liquidation of AR:
- Managed by a licensed bonded debt collection agency.
- Ensures lenders see the AR is being collected (a requirement for ABL).
- Liquidation improves cash flow and strengthens the client's P&L (profit and loss statement).
Ongoing AR Reporting:
- We manage monthly/weekly reporting required by lenders.
Increased Borrowing Power: ABL allows businesses to access financing beyond what might be available through traditional loans, particularly for companies with strong assets but less-than-ideal credit history or inconsistent cash flow.
Steps in the Process
Steps in the Process
1. Provide a Shelf Corporation:
- Processing fee covered by the client "You".
- Comes with a commercial address, business plan, financial projections, and in-good-standing status.
- Even if clients have existing businesses, it's faster and more reliable to use our shelf corps.
2. Transfer Assets (AR) to Client:
- In $1 million increments, based on desired funding amount.
3. Initiate AR Liquidation:
- Customize funding amount, entity name, and other details if needed.
4. Apply for Funding:
- Submit loan applications with all supporting documentation.
5. Get Funded (Guaranteed in Writing):
- Funding is guaranteed if the client follows the outlined steps.
Common Questions & Answers
Common Questions & Answers
Lender Evaluation: Lenders assess the value and quality of the proposed collateral. They prefer highly liquid assets (easily convertible to cash) as these pose less risk.
Companies Who Mastered ABL
"Apple (1997)"
Facing near‑bankruptcy, Apple secured a $150 million ABL facility from GE Capital, collateralized by its inventory and accounts receivable. This lifeline helped fund a crucial turnaround.
"Levi Strauss & Co"
Secured a major ABL package: a $650 million revolver backed by inventory and receivables, plus a $500 million senior secured term loan. This deal was sized well above typical ABL structures and illustrates how blue‑chip firms tap into asset‑based financing on a grand scale.
"Tesla (2014–2017)"
Drew on its assets—including inventory, AR, and equipment—to obtain a $500 million ABL facility, which expanded to $750 million in 2016 and $1.1 billion in 2017 as its scale grew.
Ready to Take the First Step?
Let’s set up a quick call and get you moving in the right direction. Click below to get started.
Copyrights 2025 | Steve Bryan Group | TERMS & CONDITIONS
Copyrights 2025 | Steve Bryan Group | TERMS & CONDITIONS