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We will introduce you to lenders to finance your business or new possible acquisition.

We are your one stop source for consulting assistance and sourcing for any business financing or refinancing.

We will help you to structure the loan and terms as well as the purchase price structure for any acquisitions to best provide you with the most advantageous terms possible.

Over the years we have developed an extensive list of direct lender contacts as well as providers of mezzanine debt/loans, second lien financing and a variety of  financing sources for literally any type of deal you may be contemplating.


ABL is an alternative form of financing utilizing the company’s assets as collateral.  Usually the term applies to working capital financing, the availability to borrow is based on receivables and inventory. It may also involve longer term financing such as real estate or equipment.

ABL is a valuable tool when bank lines are not available to the borrower, or are insufficient for its needs.  ABL works particularly well for growing companies, giving them the ability to maximize all available opportunities. All companies that provide collateral to the borrowers are ABL lenders. ABL lenders are also NON bank lenders which means that they may have a lot more flexibility to make a loan.

How does ABL lending work?

The borrower has a line of credit based on the availability of the collateral and can draw on it as needed within the guidelines negotiated with the lender..

Accounts Receivable (A/R)

The typical advance rate on A/R is 80%-90%.  The rate can vary depending upon historic and expected dilution of receivables and the quality of the clients who represent those receivables. If your clients are businesses with no credit history, they may have less value as an asset, better known will allow a higher amount.
It is important that receivables relate to goods delivered and services already rendered or completed. 

Eligible” receivables are defined as those not older than an agreed period (usually 90 days from invoice date when there are 30 day terms). 


The typical advance rate on inventory is 50%-75% of cost.  “Eligible” inventory usually comprises finished goods on hand, but could include raw materials.  WIP, in-transit inventory, and inventory held for more than a specified period is usually excluded.

If inventory is included in the advance formula there is usually a sub-limit cap and/or such lending is restricted to a percentage of total borrowings or the A/R availability.

  • Depending on the size of the credit line, usually annual reviewed financial statements and half-year compilations from an acceptable accountant are required.  Quarterly or monthly internal statements may also be required. For smaller credit lines, tax returns may be acceptable.  However, the stronger the financial reporting, the better the credit line and the more favorable the terms will be to the borrower.
  • ABL lenders require far fewer covenants than banks.  Usually only Tangible Net Worth (which also includes subordinated debt) (TNW) and/or working capital covenants are specified.  As long as these are met, shareholders are not restricted as to what they can withdraw from the business. ABL lenders are far less restrictive than banks in the amount of TNW covenants with regard to leverage, and 5 to 1 or more is not uncommon.
  • ABL lenders want the owners to stand behind the company.  This allows them to be more aggressive, knowing that the owners will be assisting to solve problems and liquidate assets, if it becomes necessary.


Rates and charges vary among lenders depending upon the size, quality and financial condition of the borrower, from a few points over the Prime Rate to 12% or more.  For larger credit lines (in excess of $1 million) there is usually an annual credit line fee and interest at a rate above the prime rate.  We assist in negotiating the best rate by receiving quotes and proposals from several interested lenders.

Advantages of ABL

  • Entrepreneurial asset-based lenders are more flexible and non-bureaucratic than banks.  They react quickly and make business-like decisions to ensure that borrowers can obtain the funds they need, when they need them.  Because of constant communication the relationship develops quickly and the lender becomes a true “business partner” of the borrower.
  • ABL lenders do not blow hot and cold, and support borrowers who perform throughout the business cycles.  It is a fact that ABL lending increased during the current financial crisis.
  • As the business grows, the credit line will grow automatically, and no clean-ups are required.
  • While it may appear that there is additional work in administering an ABL line, everything the lender requires should be readily available in a well-run business.
  • By funds flowing into a lockbox, the loan account is automatically paid down daily thereby minimizing interest costs.  This arrangement permits the borrower to operate close to a zero-balance checking account.
  • ABL works well with all types of businesses, including service companies such as security guards, staffing agencies, IT consultants, trucking, etc. or any business.

ABL lenders are forward-looking.  They are more interested in future prospects, growth opportunities and management, than purely historical information.  They do not “drive the car looking in the rear-view mirror”.