At Sterling Commercial Credit, we empower businesses of all sizes to thrive by offering comprehensive Asset-Based Lending (ABL) solutions. Tailored to your unique needs, our financial products provide flexible and accessible capital, fueling growth, managing working capital, and optimizing financial strategies.

What is Asset-Based Lending?

Asset-based lending (ABL) refers to loans secured by a variety of assets, utilizing the liquid, current assets (such as accounts receivable and/or inventory) or fixed assets (such as plant, property, and equipment) of a business as collateral. The credit risk of ABL is minimized by relying on the value of the underlying collateral.

Commercial finance, also known as commercial credit, is a term associated with the industry group of asset-based lenders that provides various types of asset-based loans to business and commercial borrowers. Asset-based lenders, often termed secured lenders, can meet your asset-based finance needs with the stability to foster a long-term relationship.

The SCC Advantage:

Expertise and Experience: Leverage our years of industry expertise to gain strategic financial solutions tailored to your unique circumstances.

Adaptable Terms: Enjoy repayment terms that accommodate the dynamic nature of your operations.

Seamless Integration: Our ABL solutions seamlessly integrate with existing lines of credit, streamlining your capital structure for growth initiatives.

Versatile Financing: Combine receivables financing with equipment, real estate, and inventory financing based on your individual needs.

Loan Commitments: Ranging from $2,000,000 to over $30,000,000.

Strategic Revolving Lines of Credit: Secured by Accounts Receivable (A/R) and Inventory.

Transparent Monitoring: Utilize our Borrowing Base Reporting for clear and efficient monitoring.

Secured Term Loans: Extend beyond traditional boundaries, securing your needs with Equipment and Commercial Real Estate financing.

Asset-Based Lending (ABL) offers a dynamic solution for businesses to obtain working capital by leveraging accounts receivables. This arrangement allows pledging receivables and inventory in exchange for a credit line or loan, with borrowing determined by the value of eligible assets. Explore how ABL can benefit your business with Sterling Commercial Credit.

Frequently Asked Questions

Absolutely! We prioritize the collateral value of assets rather than the cash flow. Companies with a robust balance sheet, even with limited cash flow, can often access higher loan amounts through our asset-based loan structure.

Generally, yes. Lenders secure a UCC-1 on assets to be in the primary lien position (excluding Real Estate). Non-real estate lenders typically hold a subordinated position behind the asset-based lender.

On-site audits may be required for inventory or real estate collateral. For other loans, such as accounts receivable, the necessity of an on-site audit varies and is determined by the lender.