Asset Based Lending Solutions

Asset Based Lending (ABL) can provide businesses with flexible access to capital by leveraging the value of their assets rather than relying exclusively on traditional cash flow underwriting. For companies with strong receivables, inventory, equipment, real estate, or other eligible collateral, ABL can create liquidity when conventional bank financing is too restrictive, unavailable, or insufficient for the opportunity at hand.

At Stirling Capital Group (SCG), we provide strategic ABL advisory and access to non-bank and specialty finance lenders capable of structuring customized credit facilities for businesses across industries. Our consultative approach helps borrowers align their collateral base, operating needs, and growth objectives with the most appropriate asset based lending solution.

Whether a company is pursuing growth, refinancing existing debt, funding an acquisition, stabilizing working capital, or navigating a turnaround situation, SCG works to identify capital partners that understand the full value of the borrower’s assets and the realities of the operating business.

Why Businesses Use Asset Based Lending

ABL is often used when a company needs greater flexibility than a traditional cash flow loan can provide. Because availability is typically tied to a borrowing base supported by eligible collateral, the facility may expand as the business grows and asset levels increase.

Working capital flexibility for seasonal, cyclical, or rapidly growing businesses

Liquidity support for companies with inconsistent cash flow or temporary financial pressure

Growth capital for expanding sales, inventory, staffing, or production capacity

Acquisition financing and refinancing alternatives

Turnaround and restructuring liquidity for companies outside traditional bank criteria

Capital access for borrowers recently declined by banks or constrained by existing covenants

The SCG Advantage

SCG does not approach ABL as a commodity lending product. We evaluate the borrower’s collateral, capital structure, operating profile, and strategic goals before positioning the opportunity with aligned capital sources. This process is designed to help lenders understand why the transaction makes sense and help borrowers access financing structures that support their business objectives.

Access to non-bank and specialty finance ABL lenders

Industry-agnostic lender relationships across multiple collateral types

Structuring guidance for complex, time-sensitive, or bank-declined situations

Ability to evaluate multiple lending options rather than a single credit box

Support for both entrepreneurial growth companies and institutional middle-market borrowers

Consultative guidance from initial review through lender selection and execution

Collateral-Based Financing Structures

Accounts Receivable Financing

Accounts receivable are one of the most common forms of ABL collateral. SCG helps businesses access revolving credit facilities supported by eligible receivables, allowing companies to convert unpaid invoices into working capital while continuing to serve customers and grow sales.

Inventory Financing

Inventory-heavy businesses often require capital before sales convert into cash. SCG works with lenders that understand inventory valuation, advance rates, seasonality, and liquidation dynamics, helping companies finance eligible inventory as part of a broader working capital strategy.

Equipment and Machinery-Based Lending

For asset-intensive companies, equipment and machinery may provide additional borrowing capacity. SCG helps borrowers evaluate structures that use owned equipment as collateral to support liquidity, refinancing, expansion, or turnaround needs.

Real Estate-Supported ABL

In certain situations, commercial real estate can be incorporated into an asset based facility to increase borrowing capacity, support refinancing, or provide additional collateral coverage for complex transactions.

Healthcare, Government, Consumer, and Specialty Receivables

Some borrowers operate with receivables that require specialized underwriting, including healthcare receivables, government receivables, consumer receivables, and other non-traditional collateral pools. SCG works with specialty finance lenders that understand these collateral categories and can evaluate them appropriately.

IP, Software, and Contract-Based Collateral

In select situations, intellectual property, software-related receivables, recurring contract revenue, or other intangible value drivers may support a customized financing structure. SCG helps identify lenders willing to evaluate non-traditional collateral where appropriate.

ABL Solutions for Complex Borrower Situations

Many of the strongest ABL candidates are not simple, traditional bank borrowers. They may be growing quickly, under temporary pressure, experiencing covenant constraints, managing customer concentration, carrying high inventory levels, or transitioning through an acquisition, restructuring, or operating turnaround.

SCG helps borrowers present these situations clearly and strategically to lenders capable of evaluating collateral strength, enterprise value, customer payment performance, and the borrower’s path forward.

Bank-declined or bank-exit situations

Covenant-challenged borrowers

Turnaround and restructuring scenarios

Rapid growth companies needing scalable liquidity

Borrowers with inconsistent EBITDA but strong collateral coverage

Companies seeking to refinance expensive or restrictive debt

Businesses requiring flexible working capital during transition

Adjacent ABL and Specialty Finance Solutions

Because asset based lending can take multiple forms, SCG helps borrowers evaluate the right structure for their needs. Depending on the company’s collateral base and financial profile, available solutions may include:

Traditional ABL revolving credit facilities

Factoring and accounts receivable financing

Inventory and equipment-backed facilities

FILO and hybrid senior structures

Recurring revenue and contract-backed financing

Asset-based working capital facilities

Refinancing and recapitalization structures

Purchase order financing and supply chain financing are separate SCG offerings and can be evaluated when those structures are more appropriate for the borrower’s operating cycle.

Built for Growth, Stability, and Execution

For growth-oriented companies, ABL can create scalable liquidity that expands with receivables and inventory. For companies under pressure, it can provide breathing room, refinancing optionality, and a path to stabilize operations. For middle-market borrowers, it can serve as a sophisticated capital structure tool that supports acquisitions, recapitalizations, and operational flexibility.

SCG’s role is to help borrowers understand which financing structure best fits their collateral profile, timing, growth plan, and risk profile — then connect them with capital sources capable of executing.

A Strategic Asset Based Lending Partner

At SCG, asset based lending is not simply about borrowing against assets. It is about unlocking the financial value of a company’s balance sheet to support growth, preserve liquidity, improve flexibility, and solve complex financing challenges. By combining lender access, structuring expertise, and a consultative advisory process, SCG helps businesses secure ABL solutions designed around their specific needs.

Contact Stirling Capital Group today to discuss your asset based lending needs and learn how our non-bank and specialty finance relationships can help your business access smarter, more flexible capital solutions.