Asset Based Lending Accord Services

Asset-Based
Lending:
Secured Loans to
Help You Thrive

ASSET-BASED FINANCING IS THE OPTIMAL WORKING CAPITAL SOLUTION FOR BUSINESSES IN THE USA AND CANADA

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, avoid draining savings accounts and effectively manage critical transitions.

Whether your business is looking to maximize growth opportunities or manage a successful turnaround, asset-backed financial products provide 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.

You know the value of your company’s assets. They are the backbone of your business, ensuring your ability to consistently produce and deliver. Asset-based loans leverage your valuable assets to help fuel your growth or sustain your business during difficult times. 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, loan 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.

Contact us today to learn more about asset-based lending and our other Accord Financial services.

accord services asset lending faq

Frequently Asked Questions

Asset-based lending is a type of business loan backed by collateral (financial or physical assets) such as accounts receivable, deposit accounts, inventory, machinery, equipment or real estate. In contrast to unsecured loans, such as a personal loan, secured loans, like ABL financing or home equity financing, provide borrowers access to larger capital flows and higher maximum loan amounts.

Asset-based loans, a revolving line of credit, and a secured credit card can all be secured by multiple forms of collateral. Your borrowing capacity is based on a percentage of the value of your assets, which is determined by the lender usually working in conjunction with an appraiser. In exchange for the loan, a security interest in your collateral is given to the lender so they may recoup some or all of the loaned funds if you, the borrower, defaults.

Asset-based loans can be secured with assets, such as accounts receivable, inventory, machinery, equipment and real estate, or even liquid assets, like cash and certificates of deposit. Asset-based loans offer flexible structure configurations since lenders can customize the terms based on the asset class used as collateral and the borrower’s unique credit profile.

The exact asset that can be used is unique to each loan and may vary depending on the lender’s guidelines and the industry in which the borrower operates. It is important to note that all assets used as collateral must have a valid title and be easily liquidated in the event of default. When properly leveraged, asset-based loans offer an efficient source of financing and can help propel business growth.

Asset-based loans enable your business to leverage its assets in order to obtain loan amounts that can finance growth, acquisitions, restructurings and turnarounds that will increase your company’s cash flow. In contrast to an unsecured loan, asset-based financing is not constrained by financial ratios or covenants based on credit score or credit history, so you can typically borrow more through ABL lending than traditional personal loans or credit lines, even if you have a strong credit report.

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.