ASSET-BASED LENDING

Unlike traditional loans that rely heavily on credit scores and financial ratios, asset-based lending focuses primarily on the value of your business assets, offering greater flexibility and faster approvals.

Businesses experiencing rapid growth, seasonal fluctuations, or needing working capital often find asset-based lending a strong fit. It's also ideal for companies that do not fully meet traditional bank lending requirements.

Once the valuation process is complete, funding can be available in as little as a few days, helping you quickly meet cash flow needs and seize business opportunities.

Asset-based lending is generally lower risk than unsecured loans, as it relies on existing collateral. However, managing your asset base effectively is important to maximize funding benefits.

Yes. Asset-based lending can complement other forms of financing, such as invoice factoring or term loans, to create a comprehensive working capital strategy.

Reporting frequency depends on the structure of your agreement, but typically includes regular updates on asset condition and maintenance, accounts receivable aging reports, inventory levels, and financial statements.

Absolutely. Many businesses use ABL to expand operations, purchase additional inventory, hire staff, or invest in new market opportunities.

If asset values decline, it may impact your available borrowing base. Express Business Funding works proactively with clients to adjust structures as needed and maintain financial flexibility.

Not necessarily. Many businesses use asset-based lending alongside their existing banking services without disruption. We work collaboratively to fit into your broader financial strategy.

Factoring, also known as accounts receivable financing, involves advancing funds against a business's outstanding invoices, typically those less than 90 days old. It is a specific form of asset-based lending, where accounts receivable serve as the collateral for the advance. However, factoring usually focuses only on receivables. In contrast, broader asset-based lending can provide financing secured by a range of assets, including inventory, equipment, and sometimes real estate, offering businesses greater flexibility beyond just their invoices.

During due diligence, asset-based lenders review your business needs, financials, and overall business plan, specifically focusing on the assets you plan to leverage. They closely evaluate the quality, value, and liquidity of these assets, such as accounts receivable, real estate, equipment, or inventory, to determine how much working capital can be made available to your business.

Asset-Based Lending (ABL) requires that the assets used as collateral, such as receivables, inventory, or equipment, are not already pledged to another lender. Before proceeding, we advise a thorough review of your MCA contract. Our team can help assess your eligibility for ABL and, if applicable, support you in transitioning to a more flexible and cost-effective financing structure.

Asset-based lending allows businesses to draw on their receivables, inventory, or equipment as collateral, offering larger credit lines and scalable funding. MCAs, by contrast, are capped by sales volume and come with daily repayment pressure.

ABL solutions from EBF are structured with competitive rates and transparent terms, whereas MCA costs can escalate quickly due to aggressive repayment models and unclear fee structures.

Yes. ABL provides a recurring, scalable line of credit. MCAs are short-term instruments that often lead to repetitive borrowing cycles rather than sustainable financial planning.