Asset-based lending (ABL)
Maximum borrowing power against your A/R, inventory, and equipment.
Asset-based lending advances funds against the value of your business assets, accounts receivable, inventory, machinery, and sometimes real estate. ABL facilities often deliver larger lines than cash-flow lending and are a common fit for Texas manufacturers, distributors, and oilfield service companies with significant balance sheets.
What financing typically looks like.
Ranges are indicative. Final structure depends on your business profile, lender criteria, and current market conditions.
- Facility size
- $500K to $50M+
- Advance rate
- 80 to 90% on A/R, 50 to 65% on inventory
- Typical rate
- Prime + 1% to 5%
- Time to fund
- 30 to 60 days
- Collateral
- A/R, inventory, equipment, real estate
- Larger lines than traditional cash-flow loans
- Borrowing base grows with your business
- Rates lower than unsecured alternatives
- Works for businesses recovering from a tough year
- Audited or reviewed financial statements (often)
- Strong systems for A/R aging and inventory reporting
- Field exam and collateral appraisal
- Typically $5M+ in annual revenue
Ideal use cases
Manufacturers, wholesale distributors, oilfield service firms, and asset-heavy businesses needing $1M+ revolving capital.
Common questions about asset-based lending.
How is ABL different from factoring?
Factoring is the sale of individual invoices. ABL is a revolving line based on the value of the broader collateral pool, you keep title to assets.
What is a borrowing base?
A regularly updated calculation of how much you can borrow, based on eligible A/R times the advance rate plus eligible inventory times its advance rate.
Is ABL only for distressed companies?
No. Many healthy, growing companies use ABL because it scales with sales and offers lower rates than unsecured options.
Ready to apply?
Talk with a Texas-based TCS advisor. Free consultation, soft credit check only, response within 24 hours.
Get started