Every business needs consistent cash flow to stay competitive within their industry.
We provide our services to a variety of industries that include:
Flexible Funding Across Several Industries
No matter the industry you serve, when it comes to meeting cash flow demands, not every business will be able to take out loans or obtain lines of credit. Fortunately, asset-based lending is a funding opportunity that is a flexible form of credit.
Your line is directly tied to the value of the assets you put up as collateral and can increase as your business grows. Let our financial experts help you thrive with what you already have!
Improve the Liquidity of Your Growing Business
If your business is quickly growing, then a surplus of cash is something it needs. Asset-based financing improves your business’s liquidity and can give your institution stability and reliable cash flow that can help garner further growth.
Get Fast Asset-Based Lending at Maximum Advance Rates
A typical bank loan can take months for approval and final funding. With abl loans, you don’t have to worry about banking products like treasury management and deposits to hold up your funding.
With Goodman Capital Finance the process moves quickly and your funding is in hand within 30 days. Not only that, but we can guarantee the maximum advance rates for your assets.
Typically, advance rates against accounts receivable can be as high as 90%, with advances against inventory up to 50%. Every industry and business is unique, and that’s why we ensure that our term loans are based on the individual transaction at hand.
Goodman Capital Finance Helps Your Business Grow With Asset-Based Financing/ ABL Loans
Our team is focused on your company’s success. We are ready to structure an individual funding solution that allows you to maximize your borrowing capacity. Let us help you focus on your growth opportunities as your financial partner in this simple process. Contact us today to find out more about our asset-based lending opportunities and how they can work for your company’s goals.
Frequently Asked Questions (FAQs)
How does asset-based lending differ from traditional bank financing?
Asset-based lending (ABL) provides a much more flexible approach to financing a business’s current operations and needs for growth. In contrast to traditional bank lending, where the borrowing company’s operations are evaluated and its future cash flow is projected, asset-based loans are based on the collateral, typically the business’s accounts receivables and inventory. Typical advance rates range from 70- 90% on eligible accounts receivable and 50-60% against eligible inventory. This type of loan typically takes the form of a revolving line of credit, which is refreshed when the collateral, e.g., the receivables, are paid down. While asset-based lenders also lend against other types of assets, including capital equipment, and real estate, account receivables are frequently the most significant proportion of collateral for these loans, primarily because of their greater liquidity, followed by inventory.
Who can benefit from asset-based lending?
Asset-based lending (ABL) at Goodman Capital Finance has opened up the financial world to numerous businesses looking for new sources of capital. Asset-based lending is a great way for those with substantial assets or sets of assets to use as collateral, allowing access to much needed capital that can often be quickly obtained. This financing solution can be tailored to the specific needs of each business, meaning all types of industries may benefit from asset-based lending services including, manufacturing and transportation, staffing and apparel/consumer goods, as well as oil field services and business services. Asset-based lending provides flexible financing options including, non-recourse loans and lines of credit, specifically adjusted for the unique needs of each business. No matter what stage your business is in, asset-based lending from Goodman Capital Finance can help bring it to life.
How can asset-based loans be used?
Asset-based loans can help bridge the gap in working capital when traditional banking lenders are unable. Often, asset-based loans are perfect solutions to short-term liquidity issues allowing companies to stay afloat and continue advancing their business objectives. Asset-based lending can be used for a broad array of purposes, including providing working capital, paying off existing creditors, payroll, trade payables, funding current operations, or making inventory acquisitions. It truly is an effective financing solution for many small businesses when utilized responsibly and with appropriate guidance from experienced banking professionals.
What companies are good candidates for Asset-based lending?
The most successful candidates for asset-based lending are typically mature companies with a predictable, sustainable cash flow and tangible assets such as real estate or inventory. Companies that are growing rapidly and lifestyle businesses are particularly suited for asset-based lending. For companies that might be related to industries that banks shy away from, this type of lending can offer an alternative to traditional bank loans – rather than relying primarily on your credit score, asset-based lenders use the collateral as the basis of their credit assessment. With asset-based lending, businesses can access more funds, receive flexible terms and interest rates, and gain better control over their banking process. Asset-based lending is a valuable strategy for any business that meets the criteria outlined above.
How can asset-based loans help my business?
Asset-based lending can provide numerous advantages to help your business grow and succeed. Asset-based loans allow businesses to borrow funds almost immediately against current assets such as accounts receivable, inventory, or equipment they already own. This type of financing empowers companies to access the cash they need without needing collateral other than their existing assets.
What are the benefits of asset-based lending?
Borrowers benefit from asset-based loans in a variety of ways. Asset-based lending provides immediate and ongoing cash flow liquidity for a company’s working capital. While a bank’s lending process may be lengthy and cumbersome—taking up to several months in some cases as the bank analyzes the borrower’s financial statements, credit history, and generally the entire business—asset-based lending requires comparatively less time to conduct the transaction. Further, because asset-based lending loans are based on collateral, lenders are often willing to be much more flexible and work with a borrower during a turnaround or transition period. Since asset-based loans emphasize the quality of the collateral, fewer financial covenants are required of the borrower. Asset-based lending lenders typically require a much more limited degree of reporting back to the lender as compared with traditional bank lending.