Chandler Financial Resource
Asset-Based Lending


Asset-Based Loans & Inventory Finance

For mid-size manufacturers and distributors, asset-based loans often provide an accessible alternative to traditional financial statement loans where profitability and a strong credit history are key components to loan acceptance.  With an asset-based loan, loan approval is much more tied to the liquidation value of your accounts receivable, inventory, and equipment rather than financial statement strength.

Financing Your Business with a Revolving Line of Credit

Who Uses Asset-Based Lending

If your company requires working capital for expansion, inventory, or equipment, an asset-based revolving line of credit may provide just the right solution.  In addition to being recognized experts in commercial factoring, Chandler Financial Resource, maintains relationships with some of the nation's largest providers of asset-based loan credit facilities and can assist your manufacturing business or distributorship in securing the financing it requires and deserves. 

How Asset-Based Finance Works

Unlike factoring which is typically a purchase and sale transaction, asset-based lending is always structured as a loan and typically, a loan type known as a revolving line of credit.

With an asset based loan facility in place, you operate your business in a normal basis but will report new sales and invoice payments to your lender each week.  Based on the payments and collections reports, your lender will provide you with a "borrowing base certificate" which sets forth the amount of credit you can access on your loan facility. 

Some Credit History Required

Unlike a typical factoring arrangement, to qualify for an asset-based loan your business will need to have established some history of good credit.  Asset-based loans (ABLs) are easier to qualify for than a traditional term loan at your local bank, but they also are more strict in some ways. 

Audits of inventory will be necessary periodically and setting up a special account for invoice payments will also be necessary.  For manufacturers and distributors unable to access a traditional bank term loan, however, and asset-based loan often provides the ready solution to capital needs.

Is an Asset-Based Revolving Line of Credit Right for Your Business?

To explore whether an asset-based loan is the right solution for your company, contact us to speak with one of our courteous underwriters.  Or, simply complete our Company Profile financing application and one of our underwriters will contact you with 24 hours.

You can also find out more about asset-based lending and our many other financing solutions by simply downloading a copy of the informative booklet, "When Banks Say NO!...the Small Business Guide to Factoring."  Its FREE, from Chandler Financial ResourceDownload your copy now!