Asset-Based Lending Services
Leverage eligible receivables, inventory, and equipment to establish committed borrowing capacity, enhance liquidity coverage, support acquisitions, and strengthen overall balance sheet efficiency and flexibility.
Value Proposition
Strengthen Liquidity Through
Asset-Based Lending Facilities
Leverage eligible receivables, inventory, and equipment to establish committed borrowing capacity and strengthen balance sheet efficiency.
Leverage Eligible Assets to Support Credit Availability
Accounts receivable, inventory, and equipment form a reliable collateral base supporting structured borrowing aligned with liquidity requirements. In select structures, real estate assets may also be incorporated to enhance collateral coverage and expand borrowing capacity.
Establish Senior Secured Revolving Credit Capacity
Asset-based loan facilities provide committed revolving credit availability secured by defined borrowing bases. This ensures liquidity availability aligned with collateral performance and enterprise scale.
Increase Borrowing Capacity as Asset Levels Grow
Credit availability adjusts dynamically based on receivable balances, inventory levels, and asset expansion. This ensures asset-based loan financing capacity scales alongside business growth.
Enhance Working Capital Efficiency and Institutional Liquidity Planning
Asset-based finance improves balance sheet efficiency by converting asset value into accessible capital. These asset-based financial services strengthen liquidity forecasting and treasury planning.
Support Strategic Growth and Capital Deployment
ABL facilities provide dependable liquidity to support acquisitions, refinancing, inventory investment, operational expansion, and, in certain cases, real estate-backed capital deployment.
Structuring Asset-Based Lending Facilities
Asset-based lending facilities are structured based on collateral quality, asset liquidity, and operational performance. These facilities provide revolving and term components that expand alongside the company's asset base.
Collateral Analysis and Borrowing Base Design
Facilities are structured around eligible receivables, inventory, equipment, and other business assets. A defined borrowing base establishes advance availability and ensures ongoing liquidity aligned with operational asset levels.
Advance Rates Based on Asset Quality
Advance rates reflect asset characteristics, customer credit profile, asset liquidity, and historical performance. Higher-quality collateral supports increased borrowing availability and enhanced capital efficiency.
Integration of Real Estate Within Asset-Based Structures
In more complex or larger-scale transactions, real estate assets can be integrated alongside working capital collateral to strengthen overall credit structure. These structures may include term loan components secured by owned property, complementing revolving facilities and supporting longer-duration capital requirements tied to acquisitions, recapitalizations, or expansion initiatives.
Facility Scalability and Availability
Asset-based lending facilities expand in parallel with asset growth. As receivables increase or inventory levels expand, borrowing capacity adjusts accordingly, ensuring liquidity scales with business operations.
Covenant Structures Aligned with Operational Stability
Facilities are structured with performance-based covenants designed to support operational continuity while maintaining appropriate financial discipline. Compared to traditional cash flow loans, ABL facilities often provide greater flexibility during periods of earnings volatility.
Ongoing Collateral Monitoring and Risk Management
Structured collateral monitoring processes are maintained, including borrowing base reporting and periodic field examinations. These measures ensure facility integrity while preserving consistent capital access.
Key Benefits
Strategic Advantages for
Middle Market Companies
ABL facilities provide flexible, asset-driven capital that grows alongside your business.
Convert Balance Sheet Assets into Immediate Liquidity
ABL facilities unlock liquidity embedded in receivables, inventory, and equipment. This allows companies to deploy capital without divesting equity or disrupting ownership structure.
Increase Liquidity Without Equity Dilution
Asset-based lending enables access to growth capital while preserving shareholder ownership. Companies maintain strategic control while strengthening balance sheet liquidity.
Enhance Financial Flexibility During Growth or Transition
ABL structures provide consistent liquidity access during acquisitions, restructurings, rapid growth phases, or cyclical revenue periods.
Scale Capital Availability with Operational Expansion
As asset levels increase, borrowing capacity expands proportionally. This ensures capital availability remains aligned with business growth.
Reduce Reliance on Cash Flow–Based Lending Constraints
ABL facilities prioritize asset value and collateral strength, allowing companies to access capital even during earnings volatility or transitional periods.
Eligibility Criteria
Who Qualifies for Asset-Based Working Capital Financing
Designed for established middle market companies with significant asset bases, strong financial controls, and ongoing liquidity requirements.
Facility Range
Up To $100M+
Asset Based Structures
Established Operating History
01Companies with a proven business model, stable operations, and consistent revenue generation. Operating stability supports reliable collateral performance and long-term credit facility sustainability.
Strong Eligible Asset Base
02Businesses with meaningful accounts receivable, inventory, equipment, or other financeable assets. A substantial asset base strengthens borrowing capacity and supports scalable liquidity access.
Consistent Working Capital Asset Levels
03Companies that generate recurring receivables and maintain operational inventory or equipment. Consistent asset levels ensure predictable borrowing availability and continuous working capital support.
Diversified Customer and Revenue Profile
04Organizations serving multiple commercial customers across industries. Revenue diversification improves collateral quality and reduces exposure to individual customer concentration risk.
Professional Financial Reporting and Controls
05Companies with accurate financial reporting, reliable accounting systems, and timely financial visibility. Strong reporting enables efficient underwriting, collateral monitoring, and ongoing facility management.
Middle Market Capital Requirements
06Businesses requiring structured liquidity solutions, typically $10 million or more, to support operations, acquisitions, or growth initiatives. Asset-based lending aligns with larger capital needs and operational scale.
Asset-Intensive Business Model
07Companies operating in sectors such as manufacturing, distribution, logistics, staffing, and industrial services. Asset-intensive operations provide the collateral foundation necessary for structured credit facilities.
Private Equity–Backed or Privately Held Companies
08Suitable for sponsor-backed and independently owned middle market companies. These facilities support acquisitions, recapitalizations, refinancing, and long-term operational expansion.
Industries We Support with Asset-Based Lending
Asset-based lending supports asset-intensive middle market sectors, including:
Manufacturing
Manufacturers leverage receivables, raw materials, and equipment to support production expansion, ac...
Distribution and Wholesale
Distributors utilize receivables and inventory financing to support large-scale purchasing and suppl...
Transportation and Logistics
Transportation providers access capital secured by receivables and fleet assets to support expansion...
Staffing and Professional Services
Staffing firms leverage receivables to support payroll obligations and growth initiatives.
Food and Beverage
Companies leverage inventory and receivables to maintain production scale and supply chain continuit...
Oil and Gas Services
Asset-based facilities support capital requirements tied to equipment and receivable portfolios.
Asset-Backed Financing Process
We implement a disciplined, institutionally structured process designed to establish scalable liquidity aligned with collateral composition, operational complexity, and long-term capital strategy.
Collateral Diligence and Eligibility Analysis
Conduct comprehensive evaluation of receivables, inventory, equipment, and other eligible assets. This includes assessing asset liquidity, turnover, concentration risk, and underlying collateral performance to establish a reliable borrowing base framework.
Borrowing Base Structuring and Facility Design
Structure revolving and term credit facilities based on eligible collateral value, advance rates, and operational requirements. Facility sizing aligns with asset levels, liquidity objectives, and anticipated growth trajectory.
Institutional Credit Underwriting
Facilities are structured using institutional underwriting standards focused on collateral quality, enterprise stability, and financial reporting integrity. This ensures long-term facility durability and institutional credit integrity.
Facility Execution and Operational Integration
Finalize legal documentation, establish borrowing base reporting protocols, and implement collateral monitoring procedures. This phase ensures seamless integration with financial operations and treasury management processes.
Ongoing Collateral Monitoring and Liquidity Expansion
Continuously monitor asset performance, borrowing base availability, and collateral trends. As asset levels increase, borrowing capacity adjusts accordingly, ensuring scalable liquidity aligned with operational expansion.
Why Middle Market CompaniesPartner with EPOCH Financial
We deliver institutional asset-based financing solutions designed specifically for middle market enterprises and sponsor-backed platforms. These facilities provide predictable liquidity, scalable capital access, and structured financial flexibility.
Structured Asset-Based Loan Facilities
Each asset based loan facility is structured around collateral strength, supporting acquisitions, refinancing, and large-scale working capital requirements.
Scalable Borrowing Base Structures
Asset-based lending availability adjusts with receivables, inventory, and equipment levels, ensuring liquidity remains aligned with operational growth.
Execution Certainty and Timely Capital Availability
Our structuring process is designed to align execution timelines with strategic capital requirements.
Disciplined Credit Structuring Framework
Our asset based lending facility structuring process ensures disciplined underwriting, execution certainty, and dependable liquidity access for strategic capital initiatives.
Long-Term Funding Partnership
Consistent asset-based funding is structured to scale alongside asset growth, supporting acquisitions, expansion, and evolving enterprise capital requirements.
Integrated Asset-Based and Real Estate Financing Structures
Facilities can incorporate real estate alongside working capital assets, supporting larger and more complex capital structures aligned with enterprise growth.
Strengthen Liquidity with Institutional Asset-Based Lending
Asset-based lending transforms existing asset value into scalable, dependable liquidity. For middle market companies, these facilities provide the structural flexibility required to support acquisitions, expansion, operational stability, and long-term enterprise growth.
Our asset-based lending solutions deliver structured, institutional capital aligned with the scale, complexity, and strategic objectives of middle market businesses.
Contact Our TeamFrequently Asked Questions
Everything you need to know about our asset-based lending solutions. Can't find what you're looking for? Contact our team.
addHow are asset-based lending facilities structured for middle market companies?
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Facilities are structured around a defined borrowing base supported by eligible collateral such as receivables, inventory, and equipment. Borrowing availability adjusts dynamically based on asset levels, ensuring liquidity scales with operational activity and balance sheet strength. This structure allows companies to maintain consistent access to capital while aligning facility capacity with enterprise growth.
addWhat is the typical facility size?
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Asset-based lending facilities typically begin at $3 million and scale significantly depending on collateral value and business size. Facility capacity can increase as the company expands its receivables, inventory, or asset base. This scalability ensures the credit structure continues to support acquisitions, expansion initiatives, and evolving liquidity requirements.
addHow quickly can facilities be established?
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Execution timelines vary depending on collateral complexity, reporting readiness, and diligence requirements. Once underwriting, collateral evaluation, and documentation are complete, facilities can be implemented efficiently. Companies with organized financial reporting and asset tracking systems typically experience faster execution and smoother facility implementation.
addDoes asset-based lending restrict operational flexibility?
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Asset-based lending is designed to support operational continuity while maintaining appropriate financial discipline through borrowing base reporting and collateral monitoring. Compared to traditional cash flow loans, these facilities often provide greater flexibility during earnings volatility. This allows management teams to operate confidently while maintaining reliable liquidity access.
addCan asset-based lending support acquisitions and expansion?
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Yes, asset-based lending is widely used to support acquisitions, expansion initiatives, recapitalizations, and working capital optimization. As asset levels increase following acquisitions or growth, borrowing capacity can expand accordingly. This makes ABL an effective capital solution for companies executing strategic growth or sponsor-backed expansion plans.