Three small business owners reviewing their asset-based lending strategy

Asset-Based Lending for Small Businesses

Working capital solutions that work for your business

Live Oak Bank can support your business with asset-based lending, allowing you to successfully operate during rapid growth or unpredictable times. We can provide your small business with flexible working capital financing solutions, including both accounts receivable and inventory.

Our experienced team will work with your business to optimize availability and affordability with the right asset-based lending (ABL) product.

Typical Customer Profile

  • Less than $125 million in revenues
  • Line of credit from $3 million to $35 million
  • Both accounts receivable and inventory

Businesses Served

  • Company or industry that is working capital intensive
  • Quality account debtor’s superior to the company’s profile
  • Businesses that have an inventory with quality value

Loan Uses

  • Turnarounds: when cash flow debt service coverage, predictability or high leverage (debt/EBITDA) does not support cash flow financing
  • Businesses seeking to expand borrowing capacity

Loan Structures

  • Competitive AR and inventory advance rates for bulk followed line of credit
  • Advance rates up to 90% (accounts receivable) and competitive for inventory
  • Continuous funding

Top Three Benefits of Asset-Based Lending

Live Oak Bank’s asset-based lending solutions offer increased borrowing availability against your working capital assets. Using our line of credit option, we provide a loan using your accounts receivable and/or inventory as collateral. If your business is growing rapidly, you’ve hit a bump in the road or you just need cash to bridge a longer production or collection cycle, asset-based lending could be ideal for your business. There are many upsides to securing an asset-based loan, which we’ve highlighted below.

 

Maximize Your Borrowing

You can borrow up to 85 percent, or potentially more, against your outstanding eligible accounts receivable and borrow as needed. We can also lend against inventory at competitive advance rates.

Flexibility

As your sales and working capital accounts grow, so does your ability to borrow. As long as customers continue to make payments as they always have, we use those payments to reduce your loan balance.

Predictable Cash Flow

Tapping into availability of your trading assets allows you to create predictable cash flow, leading you to operate your business more efficiently.

Personalized Service You Deserve

We’ll meet you where you are, whether that’s creatively structuring a small business loan or helping you maximize your money with a high-yield savings account. No need to jump through hoops for our attention — get the service you deserve from Live Oak Bank.

LENDING SOLUTIONS

Learn about Live Oak’s asset-based lending solutions and how they work for your business. Our experienced team will create a unique financing plan to help you and your business thrive.

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THREE REASONS TO SEPARATE YOUR PERSONAL SAVINGS & BUSINESS SAVINGS

While there are numerous benefits of opening a dedicated business bank account, we’ve highlighted the top reasons. Check out our blog for details.

Learn More

Contact Our Asset-Based Loan Specialist

  • Patrick Spach
    SVP - Head of Government Contracting and Asset-based Lending

    Email Patrick | 910.798.1216

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From our resource center

As part of our commitment to supporting small business owners, we have a library of free educational resources available to anyone. Here’s what you can expect to find in Live Oak Bank’s Resource Center:

  • Loan product overviews
  • Marketing tips and tricks
  • Small business fundamentals
  • Live Oak customer spotlights
See All Business Resources