An Asset-Based Line of Credit (ABL) is considered alternative financing. It is similar to a traditional line of credit offered by a bank, but with fewer restrictions. If you have had a traditional line of credit you will understand what loan covenants mean and how difficult they can be to comply with. This is a transitional step, when you are in between factoring and qualifying for traditional bank financing.

There are many reasons why you may be in this position, but the bottom line is, that you are just too highly leveraged for a bank.

The principle collateral used to secure an Asset-Based Line of Credit is accounts receivable; however, it is not uncommon for an Asset-Based Line of Credit Lender to look for "secondary" collateral. Secondary collateral is simply some other assets that you have that have equity or ownership, such as equipment, property or inventory.

Our ABL programs start at Prime+3 and up. Pricing on an Asset-Based Line of Credit is no different than any other type of money you borrow. It is critiqued from a risk standpoint. Think about it this way: the more secure a lender's money is, the less it costs you.

For more information on our Asset-Based Line of Credit programs, please contact Harry or Tami at 503-295-2929 or fill out the online pre-approval form and they will get back to you as soon as possible.