Asset-Based Lending
A flexible financing arrangement that provides businesses with access to capital secured by specific business assets. Unlike traditional term loans, asset-based lending functions as a revolving credit facility where businesses can borrow funds up to their approved limit, repay them, and borrow again as necessary. This financial instrument is particularly suited for companies experiencing rapid growth and needing efficient capital injection, as lines of credit are designed to grow in tandem with a company's sales.
- CHECK SIZE
- $1 million – $50+ million
- BASE RATE
- Prime Rate or SOFR + spread
- TERM STRUCTURE
- Revolving credit facility with flexible terms
- TIME TO CLOSE
- 4–6 weeks from signed term sheet
- SECURITY
- Senior secured on business assets
- PERSONAL GUARANTEE
- Required from 20%+ equity owners
When to Use Asset-Based Financing
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Working Capital Management
Optimize cash flow for seasonal fluctuations, inventory financing, and accounts receivable management. Provides capital for bulk purchasing opportunities and bridges gaps between invoicing and payment collection.
Manufacturing Operations
Support supply chain disruption management, production scaling, and equipment financing. Enables rapid capacity increases to meet demand surges and alternative sourcing during shortages.
Construction & Real Estate
Flexible funding for multiple concurrent projects, material and labor costs, and equipment needs. Covers fluctuating project expenses and specialized construction equipment requirements.
Growth & Expansion
Strategic investments for market expansion, technology upgrades, and competitive acquisitions. Provides quick access to capital for time-sensitive opportunities and bulk purchasing discounts.
Advantages of Asset-Based Financing
Discover the benefits of asset-based lending and how it can transform your business.
- Senior Secured Structure
- Priority in capital structure with asset backing and covenant restrictions for lender protection. Secured by equipment, inventory, accounts receivable, or real estate.
- Cost Efficiency
- Pay interest only on drawn amounts, not the entire credit limit. Lower rates than alternative financing with no usage fees for unused portions.
- Operational Flexibility
- Immediate fund access for time-sensitive opportunities with revolving availability. Customizable payment schedules based on cash flow patterns.
- Relationship Building
- Establishes strong banking partnership for future needs while building business credit history. Encourages systematic approach to cash flow planning.
Ready to leverage your assets for growth capital?
At Sereno Capital Group, we understand that high-growth companies need flexible, scalable financing solutions. We partner with lenders who offer asset-based lending programs designed to grow with your business, providing the capital you need when you need it most. With competitive rates, flexible collateral options, and a streamlined approval process, we help you unlock the value in your assets to fuel your business growth.