Using Asset-Based Lending (ABL) Proactively

Here’s what we’re currently hearing from bankers about their portfolios:

• Good companies.
• Solid performance.
• No credit issues.

But tariffs, supply chain disruption, and market volatility are making it harder for clients to plan with confidence.

That’s not a deteriorating credit profile. It’s a structural constraint. And that’s exactly where Asset-Based Lending (ABL) can be particularly useful; not as a replacement for bank credit, and not because something is “wrong,” but as a strategic working capital solution that helps strong companies stay flexible during complicated economic cycles.

Today’s uncertainty isn’t always about declining revenue or weak financials. It’s about timing gaps, inventory fluctuations, receivables concentration, and unpredictable input costs. Even fundamentally healthy businesses can experience short-term liquidity pressure when supply chains tighten or tariff policies shift.

ABL is designed for exactly this kind of environment.

ABL is not competing with traditional bank financing. It complements it. We act as a structured liquidity solution, a release valve that keeps good credits from becoming complicated ones. By leveraging accounts receivable, inventory, and other eligible assets, ABL provides scalable access to capital that grows alongside the business.

We’re not just a solution for distressed situations. Asset-Based Lending is a proactive referral strategy for strong borrowers navigating temporary working capital constraints or growth inflection points.

It’s a strategic move that allows bankers to increase client liquidity without:

• Stretching covenants.
• Expanding their credit box.
• Restructuring existing facilities.
• Taking on incremental risk.

Instead, they are able to:

• Preserve credit quality.
• Protect portfolio performance.
• Maintain relationship control.
• Provide clients with flexible commercial finance options.

Bankers keep the relationships. They safeguard their portfolios. Their clients gain predictable liquidity and operational breathing room.

In uncertain markets, effective liquidity management isn’t reactive; it’s preventative. The strongest portfolios are built by identifying structural pressure early and addressing it with flexible financing solutions before stress appears on financial statements.

If you’re seeing clients impacted by supply chain variability, tariff exposure, inventory buildup, or uneven cash conversion cycles, it may be worth a quick conversation about how ABL can support them, proactively and strategically.

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.