Asset Based Lending
How It Works - Accounts Receivable
You Sell Products & Services to Your Clients
You Sell Invoices To Lender
Lender Sends Funds Minus Reserves
Payment From Your Customer
Lender Refunds the Reserve Minus the Fees and Pays Down ABL Advance
How It Works - Inventory, Equipment, Real Estate
You Have Assets: Inventory, Equipment, Real Estate
A Value Is Assigned To The Assets Via Appraisal
Lender Assigns Advance Rates Based On Assets
Lender Calculates How Much Client Can Borrow
Lender Sends Funds To Clients
Your assets are even more valuable than you think!
Many larger companies find themselves long on confirmed business but short on working capital. Even with substantial client lists and sophisticated financial structures, payables often pre-date receivables. They simply don’t have the working capital on hand to keep up, but they fall just shy of bank loan criteria. Or if they do qualify, they have seasonal or otherwise time-sensitive capital requirements that the fixed disbursements rates of a traditional loan can’t satisfy.
For companies with a strong credit rating and advanced, verifiable financial reporting (such as receivable and payable summaries), Ivy Lender’s Asset-Based Lending (ABL) solution provides an excellent financing option that is more cost-effective, flexible and discreet than factoring.
ABL Goes A Step Beyond
ABL provides all the advantages of factoring when it comes to leveraging the value of your accounts receivable, with the added bonus of non-notification and lower rates.
Non-notification means that, unlike factoring, your clients are not involved in the process. You still handle invoicing and collections. Then you deposit the required funds into a “sweep account” from which Ivy Lender collects.
Your rates are significantly lower than they would be with a pure factoring solution since our risk is lower due to your good credit and strong financial reporting.
If you can’t currently meet bank covenant terms but are looking for enhanced borrowing capacity that’s cost-effective while protecting your financial privacy, ABL may be the answer for you.
The Ivy Lender Difference
Our best-in-class service is supported by a top notch centralized credit underwriting team. We offer the largest network of alternative funding professionals across North America, so you deal with local decision makers who understand your market, your business and your needs.
Now all your assets can help generate the working capital you need. With ABL, you can secure loans against all your valuable assets—not just accounts receivable—including inventory, equipment and real estate (both residential and commercial).
Get a financing solution that’s tailored to you. Available borrowing amounts are typically calculated weekly (not monthly as with the bank) so if you’re in a strong growth cycle, your ability to borrow increases more quickly.
Get full reporting transparency, with access to 24-7 online support. You always have full insight into the status of your arrangement: invoice images, supporting documents, collection notes and payment details.
ABL is one of the most flexible, option-rich financing alternatives available, letting you secure financing that includes—but goes far beyond—the value of your accounts receivable.