Asset-Based Lending.
Structured revolving and term facilities secured by receivables, inventory, equipment, or real estate. Higher proceeds than cash-flow lending for collateral-rich businesses.
Overview
Asset-Based Lending, structured for institutional placement.
Asset-based lending advances against the value of your assets — typically a borrowing base of receivables and inventory. ABL provides significantly more proceeds and flexibility than cash-flow facilities for collateral-rich businesses, including those in turnaround, rapid growth, or seasonal cycles. Summit places ABL with bank ABL groups, independent finance companies, and private credit funds.
Typical Terms
Qualification
Required Documentation
- 01Last 2 years of audited or reviewed financial statements
- 02Most recent YTD financials and AR / AP aging
- 03Inventory listing with eligibility detail
- 04Customer list with top 20 by revenue
- 05Existing loan documents (if refinance)
Process
Confidential evaluation of transaction profile, sponsor, and capital needs.
Underwriting against direct capital and the institutional partner network. Tailored structuring.
Indicative term sheet, followed by formal commitment from our capital partners.
Senior team leads execution. Documentation, closing, and funding handled end-to-end.
Frequently Asked
Questions on asset-based lending.
How does the borrowing base work?+
Eligible receivables (typically < 90 days, non-concentrated, U.S. commercial) and inventory (typically finished goods at cost) are advanced against monthly. The borrowing base is recalculated each reporting period.
What rates should I expect?+
Bank ABL: SOFR + 250 – 450 bps. Non-bank ABL: SOFR + 450 – 700 bps. Pricing depends on credit, size, and reporting capability.
Are there covenants?+
ABL typically has fewer maintenance covenants than cash-flow loans — often a single fixed-charge coverage springing covenant tied to availability.
Can ABL fund acquisitions?+
Yes. ABL is widely used for acquisition financing, refinance of bank debt, and dividend recapitalizations — often paired with a stretch term tranche or mezzanine layer.
What's the difference between ABL and factoring?+
Factoring purchases individual invoices and notifies customers. ABL is a revolving line against your entire borrowing base with you retaining collection and customer relationships.
Next Step