Asset Based Lending (ABL) - Business Financing Explained
Asset Based Lending (ABL) are loans made to businesses backed by a liquid asset used as collateral for the loan. Businesses that use ABLs are either highly leveraged or too small to take on more bank debt and must resort to alternative lending solutions.
These loans are used to increase the working capital of a business in order to help finance growth or operating activities.
In this video, we cover the three categories of the ABL market:
- Recourse/nonrecourse financing
- Purchase order financing
- Inventory financing
Are ABLs a possible solution? Why is inventory financing so bad? How can an ABL help a company become more organized? We answer all of these questions in the video.
If you have any other questions, please comment below. If you want to reach out via email, you can contact me at;
financeekid@gmail.com
If you are looking to sell your business and would like to learn more about Roblee Capital, please reach out to me for an introductory call. Roblee Capital is a Toronto-based M&A Investment Bank focused on serving companies with revenues between $1MM to $100MM primarily offering sell and buy-side M&A services. We work with Canadian-based business owners looking to sell their lower mid-market business. If you are a Canadian business owner looking to sell or buy, please reach out so we can connect at the link below:
www.robleecapital.ca/
Пікірлер: 10
Learned more of financing in 25 min than any other videos out there. Thanks a lot. Please do more of these.
@financekid3163
Жыл бұрын
Thanks for watching!
Excellent presentation
@financekid3163
10 ай бұрын
Thank you! Cheers!
Useful video
Thanks man
Thanks very much for the explanation. Very thorough. One question though. How realistic are these fees you have used for the different types. For example the purchase order financing we had a 7% fee on $9000 for basically what was a 6 week loan. Annualised that works out well over 90%. Is that really how much it costs? Because that’s very expensive. The first resource non recourse was even more. Considering these are collateralised in some sense why are they so expensive ?
@UTUBE1102
5 жыл бұрын
Hamza the industry in which you are operating is going to greatly affect the risks the lender/factor are willing to take. You will see much higher fees for extended pay terms & higher risk industries. Furthermore, how much volume you expect to run through your financing program will serve as leverage negotiate lower rates (9k over 6 weeks has very low opportunity in lender's eyes). Certainly shop the market, but consider the recourse and liabilites incurred upon you, the client, in the fine print when offered that mouth-watering rate you seek.
Inventory financing requires more clarity to be honest.
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