- Amount
- $50,000 – $5 million
- Term
- Revolving, renewable annually
- Speed
- Two to four weeks to establish
Where an ordinary line of credit is sized on revenue, an asset-based line is sized on collateral: the receivables you are owed and the inventory you are holding. As those balances grow, so does your availability.
Advance rates typically reach around 85% against eligible receivables and around 50% against most non-perishable inventory. That structure suits businesses whose working capital is permanently tied up in goods and invoices — distributors, wholesalers and manufacturers above all — and it scales with the business in a way a fixed limit does not.
Commonly used for
- Distributors and wholesalers carrying significant stock
- Manufacturers with long production cycles
- Businesses growing faster than their cash flow allows
- Companies whose capital sits in receivables and inventory
What it generally takes to qualify
- At least one year in business
- Around $15,000 or more in monthly revenue
- A credit score of roughly 500 or better
Guidelines, not hard cut-offs — tell us the situation and we will tell you where it stands.
Questions
How is this different from factoring?
Factoring sells individual invoices outright. An asset-based line is borrowing against the pool of receivables while you keep ownership and continue collecting.
What counts as eligible collateral?
Generally current receivables from creditworthy customers, and non-perishable inventory that can be valued and resold. Aged receivables and slow stock are usually excluded or discounted.
Is reporting required?
Yes. These facilities involve periodic borrowing-base reporting so availability tracks the collateral. It is more administration than a fixed line, in exchange for a larger and more flexible limit.
Related products
Apply for receivables & inventory line
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