A Fact-Based Approach to Asset Based Financing

FACT: You own a small business
FACT: Your business doesn’t qualify for bank financing or your bank has asked you to seek alternative financing
FACT: Asset based financing is a great solution when banks say “no”

FACTS about asset based financing:

Unlike banks, asset based lenders look at, and lend against, a company’s collateral – accounts receivable, inventory and equipment. They are not regulated like banks and take on the risk banks cannot. Pricing is higher than bank financing but that should be viewed as secondary to having access to capital needed to run the business. Plus, asset based financing is an interim financing solution and needed only until a company is ready to return to a bank. The real issue is which asset based lender is right for your business. How do you choose?

It’s best to look for a:

  • Direct lender, not middlemen
  • Loan structure that makes the best use of the funds borrowed
  • Senior management (decision-makers) who are accessible
  • Covenant-free loan; no “conditions” that set parameters on how you run your business
  • Lender who will work with you to get your business back to a bank ASAP
  • Lender who limits any interaction with your customers directly or requires the customers to change the mailing address of their payments


Taking a fact-based approach takes the guesswork out of the process and will help get your business back on track to profitability and bankability.

About Celtic Capital
Companies looking for working capital to cover operating expenses, fund growth, increase buying power and take advantage of vendor discounts and rebates turn to Celtic Capital. With an appetite for the more complex transactions, Celtic Capital has a history of success in crafting creative, flexible asset based financing solutions from $500,000 to $5 million with no financial covenants.

As an independent lender, working with companies nationwide, Celtic Capital is willing and able to alter price and deal structure and expand lines of credit to handle its clients’ increased revenues; and when cash flow is an issue, will look toward providing an inventory facility to help offset lost cash flow.

If you know of, or are, a business in need of non-traditional financing, contact Mark Hafner at 800.742.0733 or mhafner@celticcapital.com, or visit us at www.celticcapital.com.