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

Chattel Paper Financing

Turn the retail installment contracts and leases you've written to your customers into a revolving source of capital.

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

How chattel paper financing works

Chattel paper is a record of a monetary obligation secured by specific goods, such as the retail installment contracts and leases that dealers write when they finance their own customers. Asset-based lenders advance against the chattel paper portfolio, giving dealers, rental companies and lessors the capital to keep originating.

It's a specialized form of ABL that rewards strong underwriting and collection history on the contracts you hold.

Best for

  • Auto, equipment and powersports dealers
  • Rental-purchase and lease companies
  • Businesses that finance their own customers
Questions

Chattel Paper Financing FAQ

What is chattel paper?

A contract that shows both a payment obligation and a security interest in specific goods, like a retail installment contract or lease.

What drives the advance rate?

The credit quality, delinquency and loss history of the contract portfolio.

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.

Related

Other collateral & uses

Collateral

Accounts Receivable Financing

A revolving line secured by your invoices

Explore →Collateral

Inventory Financing

Capital against finished goods and raw materials

Explore →Collateral

Machinery & Equipment (M&E) Loans

Term debt against the equipment you own

Explore →Collateral

Real Estate in the Borrowing Base

Owner-occupied property added to your facility

Explore →Use case

Acquisition Financing

Buy a competitor, supplier or customer

Explore →Use case

Turnaround Financing

Capital when the bank says no

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

Borrow against your chattel.

Start with the online application; agings and reports can be uploaded right on the page.

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.