Borrowing power built from the assets you already own.
When your balance sheet is stronger than your bank’s appetite, the collateral itself can carry the structure — receivables, inventory, equipment, purchase orders, and real estate, working as capital instead of sitting on a ledger.
What is asset-based lending?
Asset-based lending is financing secured by the assets a business already owns — receivables, inventory, equipment, purchase orders, or real estate — with availability driven by collateral value rather than historical cash flow alone. Availability is sized to your eligible collateral and adjusts as that collateral changes, so borrowing capacity moves with the business instead of being frozen at last year’s financials.
That makes it a natural fit when you’re expanding or acquiring before the increased revenue shows up on a statement. The assets prove the opportunity is real; the structure turns them into capital in motion. And because we underwrite the collateral and the deal — not just the credit file — we can support transactions traditional lenders overlook, including owner-occupied and investment real estate across multifamily, office, retail, industrial, and mixed-use properties.
Six ways we structure around your assets
Receivables Financing
An advance against outstanding invoices on a borrowing base that grows as you bill. Availability tracks your eligible receivables, so funding can scale with sales instead of waiting on them.
Purchase Order Financing
Funding for supplier costs against confirmed orders — built for the contract your cash position says you can’t accept. The strength of the order anchors the structure.
Letter of Credit Financing
Trade and import support that relies on the strength of the transaction parties — useful when suppliers, especially overseas, need assurance before goods ever ship.
Inventory Financing
Revolving availability against eligible inventory, designed for businesses that have to stock ahead of demand. As inventory turns, availability adjusts with it.
Equipment Financing
Financing with the equipment itself as collateral — acquire the machines that produce revenue without draining the cash that runs the business.
Real Estate Asset-Based Lending
Decisions driven by the property and its cash-flow viability — owner-occupied and investment assets across multifamily, office, retail, industrial, and mixed-use.
The collateral is yours. The structure is ours.
Tell us what your business owns and what it’s trying to do next — we’ll design the asset-based structure around the deal.
Who is asset-based lending for?
Asset-based lending fits B2B companies with real collateral whose growth has outpaced what the bank will extend — strong receivables, hard assets, or property, and a line that stopped keeping up. It’s equally suited to acquisitions and expansions, where the assets exist today but the revenue they’ll generate hasn’t hit the financials yet.
If your need is shorter-cycle cash flow rather than collateral-driven capacity, a business line of credit may be the better starting point — and the full menu lives on our solutions hub. Capital Source has funded businesses since 2015, manages over $500 million in active funding programs, and lends in 46 states (we do not currently fund businesses in California, Connecticut, Utah, or Virginia). Curious how we evaluate a deal? Read about how we operate.
Frequently asked questions
What assets qualify for asset-based lending?
Accounts receivable, inventory, equipment, confirmed purchase orders, and commercial real estate — both owner-occupied and investment — are the most common forms of collateral. Eligibility is determined in underwriting based on the quality and verifiability of each asset.
Does weak personal credit disqualify me?
Not on its own. We look beyond FICO: collateral quality, receivables performance, and the health of the business itself carry significant weight in our review. Personal credit is one input, not a gate.
How fast is a decision?
Decisions can come as fast as 24–48 hours once we have the information we need. Collateral that requires deeper evaluation, such as real estate, can take longer, and timing always depends on the specifics of the deal.
How is asset-based lending different from a term loan?
A term loan advances a fixed amount repaid on a set schedule and is sized primarily to historical cash flow. Asset-based lending sizes availability to eligible collateral, so borrowing capacity can adjust as receivables, inventory, and other assets change.
Your assets have been earning their keep. Now let them borrow.
Tell us where your business is headed and we’ll structure capital around the assets that get it there.