Professional Services. Page prepared September 2025. FG Capital Advisors acts as arranger and advisor via regulated partners.
How Asset-Based Lending Works for Growing Businesses
A practical guide to securing funding against receivables, inventory, and equipment. Learn how lenders structure borrowing bases, assess collateral, and monitor performance.
Step 1: Assess Eligibility
Lenders focus on businesses with steady receivables, marketable inventory, and equipment with resale value. Strong reporting systems increase acceptance.
Step 2: Build a Borrowing Base
Receivables and inventory are discounted by eligibility rules. Concentrations, aging, and slow-moving stock reduce availability.
Step 3: Secure Documentation
Borrowers grant security interests through UCC filings or equivalent. Lenders require audited financials, collateral reports, and insurance certificates.
Step 4: Field Exams
Lenders perform collateral audits to test records against physical checks. Frequency increases with risk level.
Step 5: Controls
Funds often flow through lockboxes with lender control. Dominion of funds reduces slippage and ensures repayment priority.
Step 6: Ongoing Monitoring
Borrowers deliver borrowing base certificates, inventory reports, and receivable agings. Compliance drives continued availability.
| Borrowing Base Illustration | ||
|---|---|---|
| Collateral Type | Advance Rate | Notes |
| Accounts Receivable | 80% of eligible | Aged under 90 days, no affiliates |
| Inventory | 50% of eligible | Excludes slow-moving and obsolete stock |
| Equipment | Up to 70% of appraised NOLV | Subject to third-party appraisal |
Timeline
Arrange Asset-Based Lending With Confidence
Submit your financials, collateral schedules, and borrowing needs. We align structures with lender requirements and manage negotiations through closing.
Start Your ApplicationDisclaimer. FG Capital Advisors provides advisory and arrangement services. Final terms, rates, and advance rates are determined by lenders following diligence and credit approval.
