Asset-Based Lending
Revolving facilities sized to a borrowing base of eligible receivables, inventory, and sometimes equipment.
When it may be relevant
- Significant receivables and inventory on the balance sheet
- Working-capital needs that scale with sales
- Businesses where cash-flow lending is a poor fit
- Companies wanting availability that grows with assets
How it typically works
Asset-based lending sizes availability to a borrowing base: advance rates applied to eligible collateral. Receivables often carry the highest advance rates, inventory lower, and equipment is usually appraised. Eligibility criteria, dilution reserves, and concentration limits all affect the final number.
What to prepare
- Aged receivables and inventory reports
- A view of collateral quality and concentration
- Recent appraisals for equipment, if relevant
- An understanding of eligibility and reporting requirements
Put numbers to it
Use the Asset-Based Lending Calculator to see illustrative figures for your situation.
Open the Asset-Based Lending CalculatorFrequently asked questions
Is asset-based lending right for my company?
That depends on your assets, cash flow, and objective — and ultimately on a financing provider's assessment. This guide is educational and does not indicate eligibility.
Can you tell me the rate or amount?
No. Corporate Capital Map does not set rates, terms, or amounts. Those are determined by financing providers through underwriting.