Our experienced team will work with your business to optimize availability and affordability with the right ABL product. If you are seeking capital with pricing between a traditional bank line of credit and more expensive commercial finance or fintech options, consider Live Oak as your ABL partner.

Typical Customer Profile

  • Less than $125 million in revenues
  • Line of credit from $3 million to $35 million
  • Both accounts receivable and inventory

Businesses Served

  • Company or industry that is working capital intensive
  • Quality account debtor’s superior to the company’s profile
  • Businesses that have an inventory with quality value

Loan Uses

  • Turnarounds: when cash flow debt service coverage, predictability or high leverage (debt/EBITDA) does not support cash flow financing
  • Businesses seeking to expand borrowing capacity

Loan Structures

  • Competitive AR and inventory advance rates for bulk followed line of credit
  • Advance rates up to 90% (accounts receivable) and competitive for inventory
  • Continuous funding

Top Three Benefits of Asset-Based Lending

Live Oak Bank’s asset-based lending solutions offer increased borrowing availability against your working capital assets. Using our line of credit option, we provide a loan using your accounts receivable and/or inventory as collateral. If your business is growing rapidly, you’ve hit a bump in the road or you just need cash to bridge a longer production or collection cycle, asset-based lending could be ideal for your business. There are many upsides to securing an asset-based loan, which we’ve highlighted below.

Maximize Your Borrowing

You can borrow up to 85 percent, or potentially more, against your outstanding eligible accounts receivable and borrow as needed. We can also lend against inventory at competitive advance rates.

Flexibility

As your sales and working capital accounts grow, so does your ability to borrow. As long as customers continue to make payments as they always have, we use those payments to reduce your loan balance.

Predictable Cash Flow

Tapping into availability of your trading assets allows you to create predictable cash flow, leading you to operate your business more efficiently.

We help you achieve more

We’re on a mission to be America’s small business bank. Our deep knowledge and product expertise help us match you with the best solution to meet your unique needs. We’re proud to invest in America’s business owners because your drive drives us.

LENDING SOLUTIONS

Learn about Live Oak’s asset-based lending solutions and how they work for your business. Our experienced team will create a unique financing plan to help you and your business thrive.

Download Now

What is a Small Business Line of Credit

For small businesses, securing working capital can be challenging. It’s crucial that you understand your financing options so you can land on the product that best suits your business and its capital needs.

Learn More

Need a little guidance and advice?

Contact one of our ABL specialists, they’re ready to help.

  • Patrick Spach
    SVP - Head of Government Contracting and Asset-based Lending

    Email Patrick | 910.798.1216

  • Jackson Bunn
    AVP - Government Contracting and Asset-based Lending

    Email Jackson | 910.260.5416

From our Small Business Resource Center

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