Asset-Based Lending Is a Short-Term Solution for the Long Term

If you’ve been asked to exit your bank, transitioning to an asset-based lender (ABL) might at first feel unsettling when in reality, it could very well be the most positive and smart strategic move for your business to date. Unlike traditional banks that focus on credit scores and financial history, asset-based lenders primarily look at the value of your company’s assets—such as accounts receivable, inventory, and equipment. This can be particularly beneficial if your business is experiencing cash flow challenges, seasonal fluctuations, or rapid growth.

ABLs offer faster approval processes and more flexible funding options, allowing you to access the capital you need without the lengthy paperwork often associated with banks. Moreover, asset-based lenders are typically more willing to work with businesses that have unique needs. They understand the dynamics of various industries and can offer customized solutions. The referral process to an asset-based lender ensures that you’re connected with lenders who understand your business and its potential for success.

Additionally, a relationship with an ABL lender tends to be more hands-on, requiring more detailed reporting and forced discipline than you find with a banking relationship. But embracing the discipline will help put your business on solid footing to once again qualify for bank financing.

Asset-based financing is a short-term solution for struggling businesses to get back on track. Keeping that mindset will help you return to bankability much sooner than you might expect and your business will be in better shape for it.

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 more complex transactions, Celtic Capital has a history of success in crafting creative, flexible asset-based financing solutions from $500,000 to $8 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.