In response to growing client demand for working-capital solutions tied to operating assets rather than real estate alone, OFC arranges Asset-Based Lending (ABL) facilities for operating companies — providing liquidity that scales with the business rather than relying solely on cash flow or credit history.
Rather than underwriting primarily on EBITDA or cash flow, ABL lenders focus on the value and liquidity of the underlying collateral, applying advance rates to establish a “borrowing base” that rises and falls with the business.
Eligible Collateral
Accounts Receivable
Commercial invoices, generally under 90 days old
Inventory
Raw materials, work-in-process, and finished goods
Machinery & Equipment
Operating equipment, valued at forced-liquidation rates
Commercial Real Estate
Used as a supplemental collateral component
Intellectual Property
Trademarks, licenses, and royalty streams (select cases)
Available Structures
Facility Size
$1M to $100M+, tailored to the borrowing base
Structure
Revolving line of credit, term loan, or a combination of both
Term
Revolvers 1–3 years (renewable); term loans amortized 1–5 years
Covenants
Fewer than traditional cash-flow loans; tied to collateral reporting
Advance Rates
AR: up to 85–90% | Inventory: 40–65% | Equipment: 60–80%
Reporting
Periodic borrowing-base certificates and collateral field exams
Recourse
Recourse and non-recourse options available
Use of Proceeds
Working capital, acquisitions, refinancing, turnaround/exit financing
Why Asset-Based Lending
Unlocks Liquidity in Receivables, Inventory & Equipment
Fewer Covenants Than Cash-Flow Lending
Financing Grows With Your Collateral
Fits Companies With Strong Assets, Thinner Cash Flow
Suited to Acquisitions, Recaps & Turnarounds
OFC’s relationship managers work with operating companies and their advisors to evaluate available collateral, structure the borrowing base, and place the facility with the lender best suited to the company’s industry, size, and credit profile.
Contact Us →