Asset-based
Loans
Put the value in your business to work.
Explore financing secured by eligible inventory, equipment, or receivables—and create room for your next business opportunity.
Valuable assets.
More possibilities.
Your business may hold significant value in inventory, equipment, and outstanding customer invoices. Asset-based financing uses eligible assets as collateral to help support your funding needs.
Whether you’re managing operating expenses, preparing for a new contract, or investing in growth, Midwest Funding Advisors helps you explore lenders and financing structures that fit your business.
Start with what you already have. We’ll discuss your assets, your cash flow, and your goals to help identify potential financing options.
Opportunity you can build.
Capital for the work ahead.
Depending on the lender and financing agreement, funds may support a range of business needs.
Operating Expenses
Support everyday business costs while managing the timing between expenses and customer payments.
New Contracts
Prepare for larger orders with the materials, staffing, and resources needed to deliver.
Inventory Purchases
Plan stock purchases around demand, supplier schedules, and upcoming sales opportunities.
Seasonal Needs
Address the upfront expenses that can come with busy periods and seasonal demand.
Business Expansion
Explore funding for additional capacity, new markets, or a growing customer base.
Working Capital
Create additional financial flexibility to support your business’s operating cycle.
What assets may qualify?
Lenders determine eligibility based on asset quality, value, ownership, and existing liens.
Accounts Receivable
Eligible unpaid customer invoices may support borrowing. Lenders evaluate factors such as invoice age, disputes, payment history, and customer concentration.
Inventory
Certain inventory may qualify after review of its condition, marketability, and value. Eligibility can vary by product type and industry.
Equipment
Some financing structures may include business equipment. Lenders may require an appraisal and consider age, condition, resale value, and liens.
Know your assets.
Prepare your next move.
Accurate records help lenders understand the value available to support financing. Depending on your request, useful information may include:
- Recent business financial statements and bank statements
- Accounts receivable aging and customer payment history
- Current inventory reports and valuation information
- Equipment lists, ownership records, and available appraisals
- Existing loans, liens, and financing agreements
- Your funding goals and projected cash flow needs
We’ll help you understand the next steps and coordinate with prospective lenders as they review your request.
Borrowing power tied to eligible value.
For a revolving asset-based facility, lenders generally calculate a borrowing base using eligible collateral and agreed advance rates.
Available credit can change as receivables are collected, inventory levels shift, or collateral values change. It remains subject to the facility limit and loan agreement.
Plan for ongoing reporting. Lenders may require updated collateral reports, inspections, or appraisals throughout the financing relationship.
From first conversation to funding.
Tell Us About Your Business
Discuss your financing goals, operating needs, and the assets your business owns.
Explore Lender Options
We help connect you with prospective lenders and clarify their documentation and collateral requirements.
Review and Move Forward
Review the proposed terms, costs, and reporting obligations. Funding follows lender approval and completion of closing requirements.
Asset-based financing FAQs.
What is an asset-based loan?
Asset-based financing is secured by eligible business assets, commonly receivables or inventory. Some arrangements also include equipment. It may be structured as a revolving credit facility or a term loan.
How much could my business borrow?
The amount depends on eligible collateral, lender valuations and advance rates, existing liens, and underwriting. The full book value of your assets does not necessarily equal the amount you can borrow.
Does credit history still matter?
Yes. Although collateral plays a central role, lenders may also review credit history, financial performance, cash flow, management, and repayment ability. Valuable assets alone do not guarantee approval.
Can borrowing availability grow with my business?
It may increase when eligible collateral grows, subject to the facility limit and loan terms. Availability may also decrease when collateral values or eligibility change. Increasing the facility limit requires lender approval.
How is this different from factoring?
Factoring generally involves selling invoices to a factor. Receivables-based lending uses eligible invoices as collateral for borrowing. Payment collection, customer notification, and reporting requirements depend on the agreement.
What should I review before accepting an offer?
Review rates, fees, eligible collateral, advance rates, reporting duties, guarantees, covenants, and repayment terms. Understand the lender’s rights to pledged assets if you default and what happens if borrowing exceeds the permitted borrowing base.
Explore other financing options.
Factoring + AR Financing
Explore options that use eligible unpaid invoices to support business cash flow.
Learn MoreEquipment Loans
Explore financing for machinery and equipment that support your operations.
Learn MoreLines of Credit
Access a revolving financing option for changing business needs.
Learn MoreFinancing is subject to lender approval, collateral eligibility, and applicable terms. Availability, costs, and requirements vary by lender and business.
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Your business has value.
Let’s explore its potential.
Connect with Midwest Funding Advisors to discuss your assets, your funding needs, and your next step.
Jeshua Morgan · Midwest Funding Advisors