Different types of businesses benefit from different types of financing. At Summit Financial Resources, we understand that it’s not one-size-fits-all. We are experts in determining the funding program best suited to getting you the working capital you need.
For businesses that want to improve their cash flow to fund operations or manage growth, our asset-based financing program can be ideal. Asset-based lending is more flexible than other types of business funding, such as traditional bank loans, and it is often easier to obtain and more cost-effective.
How Does ABL Work?
An asset-based loan (ABL) is secured by your company’s pool of assets, and the collateral is typically your outstanding invoices. As your customers pay their bills, your loan is repaid. This type of financing allows you to quickly turn your accounts receivable into working capital.
Who is Summit Financial Resource’s Typical ABL Client?
A company with a solid management team, an asset-rich balance sheet, and a history of effective business management – even during tough times. With lower reporting requirements, our ABLs use a borrowing base to manage the collateral, and we offer up to 85% advance rates. Because this product is designed for businesses with a low risk profile, we won’t be monitoring your every move. This gives you the freedom to use your working capital when and how you see fit.
ABLs are sometimes confused with Invoice Factoring. Both products use accounts receivable as their main collateral and offer similar benefits, but with Invoice Factoring your receivables are sold individually, rather than financed in total. Summit Financial Resources provides Invoice Factoring financing for small businesses that may not have the balance sheet to qualify for an asset based loan.
Benefits of ABL
Asset-based lending empowers companies that want to maximize the value of their assets to help fund seasonal fluctuations in cash flow or take advantage of immediate business opportunities — which means manufacturers, wholesale distributors, and professional services firms are prime candidates for this type of financing.
Summit Financial Resources’ ABL approach to financing enables us to look beyond your company’s current circumstances, find value in the investments you make in the course of doing business – and bank on your success.
Asset-Based lending is a few clicks away.
Summit Financial Resources specializes in working capital financing for small to medium-sized businesses that need increased cash flow. We provide working capital financing through invoice factoring, asset-based lending, inventory lending, and equipment financing.