WIN-WIN CAPITAL FUNDINGBridging Capital • Building Success
Asset-based lending

Acquisition Financing: buy a competitor, supplier or customer

Use the acquired company's receivables, inventory and equipment, along with your own, to finance the purchase.

Apply nowAsset-based lending(210) 702-8811
Revolver + termStructure
CollateralFirst
3 – 6 wksTypical close
All 50States
Use case

Acquisition Financing with asset-based lending

Asset-based acquisition financing lends against the combined assets of buyer and target. Because the loan is sized on collateral rather than only on historical cash flow, it can finance acquisitions that cash-flow lenders won't, including carve-outs, turnarounds and companies with uneven earnings.

Because availability comes from your receivables, inventory, equipment and real estate, the facility can be sized to the plan, not just to last year's earnings.

Best for

  • Strategic add-on acquisitions
  • Management buyouts and carve-outs
  • Buyers of asset-heavy companies
Questions

Asset-based lending FAQ

What is asset-based lending?

A revolving line of credit, often paired with term loans, secured by your business assets: accounts receivable, chattel paper, inventory, machinery and equipment, and real estate. Availability is set by a borrowing base that moves with those assets.

How is ABL different from a bank line?

Banks lend mainly on cash flow and covenants. Asset-based lenders lend on collateral, so they can fund companies with losses, uneven earnings, fast growth or a leveraged balance sheet.

What advance rates are typical?

Commonly up to 80–90% of eligible receivables, up to 50–65% of inventory at net orderly liquidation value, and up to 75–85% of equipment at orderly liquidation value, set facility by facility.

How fast can an ABL close?

Typically 3–6 weeks from term sheet, including field exam and appraisals; non-bank lenders often move faster than banks.

What reporting is required?

Usually a monthly or weekly borrowing base certificate with A/R and A/P agings and inventory reports, plus periodic field exams.

Can a company with losses qualify?

Yes. Asset-based lenders focus on collateral quality and a credible plan, which is why ABL is common in turnarounds.

Related

Other use cases

Use case

Turnaround Financing

Capital when the bank says no

Explore →Use case

Growth Capital

A line that grows with your sales

Explore →Use case

Restructuring

Reset the capital structure

Explore →Use case

Refinancing

Refinance banks, MCAs and expensive debt

Explore →
Discuss your scenario

Rather talk it through first?

Skip the full application. Tell us what you need in a few words and an account executive will call you back with options.

  • No application, no credit pull
  • A real account executive, not a call center
  • Usually a call back within one business day
Prefer to call? (210) 702-8811
Next step

Talk through your acquisition financing.

Start the application and we'll come back with how lenders would size it.

Start the application

Commercial financing is arranged through Win-Win Capital Funding's network of banks, equipment lessors and asset-based lenders. Rates, terms, advance rates and amounts depend on credit, time in business, revenue, collateral and the equipment, and all financing is subject to credit approval and documentation. Tax treatment varies; consult your tax advisor. This is not a commitment to lend.