What are Asset Based Loans
Most business owners are sitting on capital they don't even know they have. If you have invoices waiting to be paid, inventory in a warehouse, equipment on a job site, or real estate — you may already qualify for funding. You just haven't been shown how to use it.
People always ask me — should I be using asset-based lending in my business? What assets can even be used?
So let me break it down. Because the answer might be closer than you think.
The 4 Core Assets in Your Business
Receivables (B2B) — This is the one nobody talks about and it's a big deal. If you're a business that sells to other businesses and waits to get paid — those invoices are assets. I've had clients working with Nordstrom, Macy's, airlines, BevMo, Home Depot, Walmart, Target. That's the beauty of capitalism. Those receivables? Lenders will give you 80–90% of their value. So for every $1M you're waiting to collect, you could have $800K–$900K in your hands right now.
Inventory — Got product sitting in a warehouse? That's money on your shelves. Lenders typically advance 25–50% of your appraised inventory value. Say you've got $5M in inventory and $5M in receivables — that's $10M in assets. Now we're talking real capital.
Machinery & Equipment — What's on your floor, your job site, your fleet. If it has documented value, it can be leveraged.
Real Estate — Most ABL lenders want to start here because it's the easiest to work with. But if you don't have it, that's fine — lenders will often use a combination of your other assets to build your borrowing base.
What You Need to Know Before You Go This Route
There are a lot of ABL lenders out there — some are banks, some are non-banks. They all work a little differently and focus on different deal sizes, industries, and asset types.
If you're going the inventory route, you'll need to get it appraised. And lenders will do spot checks — field exams — either quarterly, every six months, or annually. You pay for those. So if you're not looking at a facility in the $2M–$5M+ range, the cost of those exams may not make sense for where you are right now. There are other lending options that don't require you to tie up your assets — and we can help you figure out which one actually fits your situation.
The Bottom Line
Your receivables, inventory, equipment, and real estate aren't just things you own. They're leverage. And if you're not using them to fund your growth, you're leaving money on the table.
As your business grows, you can pull in the right ABL lender to leverage one asset or combine several — and access capital without giving up equity or waiting for cash flow to catch up.
There are a ton of ABL lenders out there and they all focus on different things. Different deal sizes. Different asset classes. Different industries. It can be really hard to navigate on your own, which is exactly why I built Build a Business Method to cut out all the noise. Check out the link below, get connected to help answer any questions and make it easier when looking to choose the right lender for your business
Ready to See if You Qualify?
If you're ready to explore your funding options, schedule your 1:1consult with an advisor. We'll review your business profile, help identify financing options that fit your situation, and point you in the right direction before you submit unnecessary applications.https://buildabusinessmethod.com/
📘 While you're here, download ourFREE Business Blacklist Name Guideto learn how one simple mistake could limit your funding options before you even apply.
🎥 And if you're looking to build a stronger funding foundation, visit our YouTube channel for free business funding, business credit, and financial literacy training designed to help you become fundable—not just funded.
