What is an Asset Based Loan (ABL)?

Similar to factoring in many ways, asset-based loans are those credit facilities granted borrowers using account receivable and inventories as the primary collateral. Unlike factoring arrangements, however, which result in the sale of your accounts receivable, asset-based credit facilities are always structured as loans. 

Though we are primarily consultants in commercial factoring, at Triangle Funding Group, asset-based lending relationships are maintained with some of the largest lending facilities in the nation. In addition to assisting you in selecting the appropriate lending institution, we can often provide your company with mezzanine (temporary) financing to bridge the gap while changing lenders or during capital intensive times.

Criteria for asset-based lending and establishing revolving lines of credit are substantially different than factoring. To establish credit lines with our lenders, your company must:

- have well established credit with few derogatory experiences;

- be seeking at least $500,000;

- have substantial collateral with at least 2-1 coverage;

- have at least a three year experience of profitability;

- have at least a three year experience of profitability;

One of the most popular methods of securing asset-based loans is to receive a loan guarantee for the United States Small Business Administration or SBA. To further explore what the SBA can provide you, visit this government site by clicking the above link or contact us at Triangle Funding Group.

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