Leverage Inventory

Borrow against the value of your inventory to access working capital.

Accounts Receivable

Use outstanding invoices as collateral for immediate liquidity.

Equipment Equity

Tap into the value of owned machinery or equipment for financing.

Tailored Solutions

We match you with lenders experienced in asset-backed structures.

About Asset-Based Lending

What Is Asset-Based Lending?

Asset-based lending (ABL) is a financing method that uses your company’s tangible assets—like inventory, accounts receivable, or equipment—as collateral for a loan or line of credit. It’s ideal for businesses that have valuable assets but need liquidity for growth or operations.

Common Uses

  • Improving cash flow during seasonal slowdowns
  • Financing rapid growth or expansion
  • Covering operational expenses while waiting for receivables
  • Funding large purchase orders or contracts

Loan Terms & Rates

Rates and terms vary depending on the quality of the collateral, borrower’s credit, and lender’s risk appetite. Many ABL facilities are revolving lines of credit, allowing ongoing borrowing against the assets.

Eligibility Criteria

  • Assets with verifiable value (inventory, receivables, equipment)
  • Stable operations and sales history
  • Acceptable financial statements and reporting ability
  • Credit profile meets lender requirements

Why Choose Us?

Asset-based lending can be complex to structure. At F.G. Howell, we:

  • Work with lenders who specialize in ABL facilities
  • Negotiate favorable advance rates on your assets
  • Ensure the loan is structured for your business cycles
  • Provide guidance through collateral audits and reviews
Quick Facts:
Varies
Collateral: Inventory, A/R, Equipment
Structure: Loan or Line of Credit
Advance Rate: % of Asset Value
Use: Working Capital, Growth

Your Partner in Finance

At F.G. Howell, we make asset-based lending a strategic tool for growth. We align you with the right lenders, optimize your advance rates, and help manage the relationship for long-term success.

Frequently Asked Questions

Typically, accounts receivable, inventory, and owned equipment are accepted as collateral for ABL facilities.

No. While larger companies often use ABL, small and mid-sized businesses with valuable assets can benefit as well.

Lenders apply an advance rate to the appraised value of the collateral. For example, you might borrow 80% of your receivables’ value.

Yes. You continue to use your assets, but the lender has a secured interest in them until the loan is repaid.