Asset-Based
Lending: a
Secured Loan to
Help You Thrive

Asset-based financing is the optimal working capital solution

Asset-based lending, also known as asset backed finance, ABL lending or an asset-based loan, provides your small or medium-sized business with fast, flexible financing to optimize cash flow and effectively manage critical transitions.

Whether your business is looking to maximize growth opportunities or manage a successful turnaround, asset-backed financing provides maximum flexibility, especially in the following circumstances:

  • Refinancing
  • Rapid growth
  • Restructuring or turnaround
  • Acquisition, merger or buyout

Asset-based lending works just like a revolving loan, which means it’s available when you need it, and you can pay it down whenever you choose.

Regardless of the industry or size of your company, a lot of your business’ capital is likely “locked up” in its assets.

Asset-based loans leverage your valuable assets to help fuel your growth or sustain your business during difficult times. You know the value of your company’s assets. They are the backbone of your business, ensuring your ability to consistently produce and deliver. But your assets are also an ideal source of financing. Accord can unlock the value of your assets, and provide you with a flexible ABL loan from $1 million up to $20 million.

The size of your asset-based loan is calculated on a percentage of the combined value of your accounts receivable, inventory, equipment, and in special circumstances, real estate. This allows your company to turn its assets into working capital and access flexible funding quickly. Most importantly, with an Accord asset-based loan, as your company’s operations and assets grow, so does the available funding, which is essential to help you achieve your next milestone.

Our mission is to simplify your access to capital so your business can thrive. An asset-based loan from Accord is an excellent way to leverage your assets to help you succeed.

Your asset-based loan request will be evaluated based on the value of your collateral and your management team’s experience, aiming to meet your financing needs without imposing onerous financial covenants. This will allow your business to quickly access more financing than with a traditional bank loan.

Timing is key when you need liquidity to manage your daily operations.

Your asset-based loan is calculated on:

  • Up to 90% of approved accounts receivable
  • Up to 90% of the net realizable value of inventory, equipment and real estate
  • Up to 75% of the cost of inventory that is pre-sold to approved customers

We want your business to succeed. We can help make that happen by simplifying your access to capital with an asset secured loan.

When you choose Accord, you have one of North America’s most experienced teams on your side. Accord has over 40 years of experience providing asset-based financing solutions to small- and medium-sized businesses.

Our team is dedicated to streamlining the entire asset-based lending process, from due diligence, credit approval and funding to onboarding, daily service and renewal/graduation.

We are proactive to provide top-notch service. Our highly experienced team works hard to understand your business and grow with you—providing support at each level of success. And our word is our bond, when we say we’ll do something, it’s as good as done.

Accord’s asset-based lending is ideal for a wide variety of industries across the United States and Canada. You can count on us to consistently deliver flexible asset-based loans with speed and transparency. We have provided asset-based financing to a broad range of companies, including: manufacturers, wholesalers, distributors, retailers, importers, exporters and many others. Once we get to know your market, sales pattern and team, we can help take your business to the next level with cost-effective financing solutions.

Frequently Asked Questions

Asset-based lending is a business loan secured by collateral (assets) such as accounts receivable, inventory, machinery, equipment or real-estate. Asset-based lending is also known as ABL, asset-based financing, or asset-based loans.

An asset-based loan, or line of credit, is secured by accounts receivable, inventory, machinery/equipment, and/or other balance-sheet assets. You can borrow a certain amount based on a percentage of the value of your assets which is determined by the lender usually working in conjunction with an appraiser.

Asset-based loans enable your business to leverage its assets in order to obtain working capital to finance growth, acquisitions, restructurings and turnarounds. As asset-based loans are not constrained by financial ratios or covenants you can typically borrow more under an ABL facility than a traditional credit line.

During due diligence, asset-based lenders will work with you to study your needs and your business plan, and, in particular, take a deeper look at the specific assets that you want to leverage in order to access additional working capital.

The rates on asset-based loans vary greatly from one transaction to the next. Typically, asset-based lending rates are based on the type of asset available as collateral, the level of risk and the financial performance of your business.

Factoring, also known as accounts receivable financing, is an advance on a business’ outstanding invoices (usually <90 days old). Therefore, factoring is technically a type of asset-based financing, where the business’ receivables act as the asset to secure funding from the lender. Many factoring companies will provide accounts receivable financing, but will not offer financing on other assets such as inventory or equipment.