In 2020 the world changed
Business Funding Did, Too
Post COVID Funding
Funding for the new normal
Asset Based Lending
Asset Based Lending
Funding That Grows With you
Asset-Based Lending, or ABL, fills the gap between traditional bank lending and invoice discounting or factoring. Historically, ABL has allowed companies with a reasonably strong credit history to use their AR, inventory, fixed assets, real estate, equipment, and other holdings to secure lines of credit in the $1mil to $20mil range. As the businesses grow, so to does the ABL line.As we come out of the coronavirus pandemic, we have seen a pattern emerge with in our conversations with ABL providers. They most certainly want to do deals; after all providing alternative funding to small businesses is how they make money! In the new normal, however, it just isn’t that simple.
Many of the traditional tools of underwriting are not available right now. Specifically, ABL lenders look for consistency and most businesses just can’t show consistent, uninterrupted cashflow, inventory levels, and other business metrics that have been historically relied on during the underwriting process.
None of this is to say that Asset-Based Lenders in the post-COVID world have their heads in the sand! They know they need to get deals done, but they are looking for the safest deals out there right now. We firmly believe that if you had, pre-COVID, consistent, verifiable sales and controls in place, along with a strong credit history, and you still have assets in place that are leverageable, a well-packaged deal can get done.
This is where we come in. By having an advocate that knows how to speak the language of the funder, knows the risk factors they are going to be most scrutinizing, and in many cases just knows them, your odds of funding increase.
The ability to mix your Accounts Receivable, equipment, and other hard assets into a single line of credit make make ABL just the tool you need to take your business from post-pandemic survival to thriving!
It’s better to know the HOW than the WHY
We can’t tell you we know what lenders are looking for. They themselves are still figuring it out. When you can’t know the “why”, the “how” becomes indespensable. We know how to present a business. We know how to shop lenders. We know how to speak their language. We know the grueling, tough questions they are likely to ask you, and we can ask them first.
Yes, small and mid-sized businesses can still get capital. Yes you can still get funding for your next stage of growth, or to get you back on track. You just have to know the “how”.
It’s better to know the HOW than the WHY
We can’t tell you we know what lenders are looking for. They themselves are still figuring it out. When you can’t know the “why”, the “how” becomes indispensable. We know how to present a business. We know how to shop lenders We know how to speak their language. We know the grueling, tough questions they are likely to ask you, and we can ask them first. Yes, small and mid-sized businesses can still get capital. Yes you can still get funding for your next stage of growth, or to get you back on track. You just have to know the “how”.Find YOUR new normal
Our team of professionals can help you find your new cashflow equilibrium.
We will look at your individual situation; financial and business history, detailed projections, industry outlook, funding requirements, business volume and other factors. We will challenge your assumptions. We will ask you the hard questions now, when an incorrect answer won't cost you access to the capital your business needs to flourish.
We may recommend pursuing a traditional bank loan, and we can help you shop to the right lenders who are ready to do business. We may recommend that you leverage capital tied up in receivables, and find a factor that meets your business profile. We may match you with a company that specializes in funding businesses based on hard assets. First, however, we'll get to know your business, so we know how to advise you.
Find YOUR new normal
Our team of professionals can help you find your new cashflow equilibrium.
We will look at your individual situation; financial and business history, detailed projections, industry outlook, funding requirements, business volume and other factors. We will challenge your assumptions. We will ask you the hard questions now, when an incorrect answer won't cost you access to the capital your business needs to flourish.
We may recommend pursuing a traditional bank loan, and we can help you shop to the right lenders who are ready to do business. We may recommend that you leverage capital tied up in receivables, and find a factor that meets your business profile. We may match you with a company that specializes in funding businesses based on hard assets. First, however, we'll get to know your business, so we know how to advise you.